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Rental yields›London›Newham

Rental yield in Newham

38.5% of households in Newham rent privately, one of the highest shares in England and Wales.

Newham has one of the highest average gross rental yields in England and Wales. Relatively affordable prices against solid rents put it near the top of 316 areas for buy-to-let income return.

Over the past year, average prices in Newham fell 5% and average rents rose 2.9%.

Average gross yield

5.9%

#15 of 316 areas

Average price

£390,349

▼ 5% past year

Average rent

£1,928/mo

▲ 2.9% past year

Privately rented

38.5%

of 115,511 homes

Average rent by size

1 bedroom

£1,630/mo

↑ +2.7% / yr

2 bedrooms

£1,993/mo

↑ +2.8% / yr

3 bedrooms

£2,212/mo

↑ +3.5% / yr

4+ bedrooms

£2,672/mo

↑ +3.1% / yr

1 bed£1,630
2 beds£1,993
3 beds£2,212
4+ beds£2,672

Average private rent by number of bedrooms, across new and existing tenancies. ONS Price Index of Private Rents (August 2026).

Council tax bands (2026-27)

Band A

£1,296

Band B

£1,512

Band C

£1,728

Band D

£1,944

Band E

£2,376

Band F

£2,808

Band G

£3,240

Band H

£3,888

Average annual bill for the area, including police and other precepts (MHCLG and Welsh Government, 2026-27). Community precepts vary, and the band is set by the property, so check the exact band on gov.uk.

How it compares

Newham5.9%
Highest (Newcastle upon Tyne)7.0%
Typical (median)4.4%
Lowest (Derbyshire Dales)2.8%
See Newham on the yield map →

Deprivation (IMD 2025)

185 neighbourhoods

5% of Newham's neighbourhoods are in England's most deprived 10%. The typical one sits in the more deprived half of the country.

Most deprived fifth 45%Second fifth 42%Middle fifth 6%Fourth fifth 5%Least deprived fifth 2%

Fifths of England, most to least deprived (MHCLG IMD 2025). It shifts street by street, so check a specific postcode.

15 Article 4 areas are recorded in Newham, none of them tagged as restricting HMO conversions; 15 restrict commercial-to-residential conversions. The dataset is incomplete, so check the exact postcode before planning an HMO.

Check on the Article 4 map →

Work out the yield on a specific property

Pre-filled with the Newham average. Change them for a real property.

Gross yield5.9%

That is right on the Newham average of 5.9%. Add costs for a net estimate.

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Nearby areas

Areas with a similar yield

Common questions

Is Newham a good place to buy to let?

On income alone it is among the strongest areas in England and Wales, at a 5.9% average gross yield. High-yield areas tend to see slower price growth, so it suits investors who value monthly income over long-term capital gains.

Are rents rising in Newham?

Over the past year, average rents in Newham rose 2.9% and average prices fell 5% (HM Land Registry and ONS, to August 2026).

Is there rental demand in Newham?

Rent movement is the best free proxy for tenant demand, and average rents in Newham rose 2.9% over the past year (ONS), which points to tenants competing for available stock. Still ask local letting agents about typical void periods before committing to a buy-to-let there. For the size of the market: at the 2021 census, 38.5% of Newham's 115,511 households rented privately (28% social rented, 30.8% owner occupied).

What is the average rent for a 1, 2 or 3 bedroom property in Newham?

As of August 2026, average monthly rents in Newham by property size are £1,630 for a 1 bedroom property, £1,993 for a 2 bedroom property, £2,212 for a 3 bedroom property, £2,672 for a 4 or more bedroom property (ONS). The all-size average is £1,928 a month.

How much is council tax in Newham?

In 2026-27, the average Band D council tax in Newham is £1,944 a year including police and other precepts. Bills scale with the property's band: from £1,296 for Band A up to £3,888 for Band H. Community precepts vary within the area, so treat these as area averages and check the exact band and bill with the council.

How deprived is Newham?

On the English Indices of Deprivation 2025, 5% of Newham's 185 neighbourhoods are in England's most deprived 10%, and 2% are in the least deprived 10%. The typical neighbourhood is in decile 3 of 10, where 1 is most deprived. Deprivation shifts street by street, so check the exact postcode before you offer.

What is a good rental yield in the UK?

As a rough guide, under 4% is low, 5 to 6% is typical, and above 6.5% is high. Newham is at 5.9%.

Weighing up Newham? Ask people who invest there in the free Housetrix Discord, or browse every area ranked by yield.

Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (July 2026). Average rent: ONS Price Index of Private Rents (August 2026). Deprivation: MHCLG English Indices of Deprivation 2025. Regions: ONS. Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.