Rental yields›London›Tower Hamlets
Rental yield in Tower Hamlets
Tower Hamlets has the highest rental yield in London: 6.6% gross.
Tower Hamlets 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 Tower Hamlets fell 14.4% and average rents rose 3.5%.
Average gross yield
6.6%
#2 of 316 areas
Average price
£447,796
▼ 14.4% past year
Average rent
£2,453/mo
▲ 3.5% past year
Privately rented
38.2%
of 120,539 homes
Average rent by size
1 bedroom
£1,992/mo
↑ +3.4% / yr
2 bedrooms
£2,418/mo
↑ +3.4% / yr
3 bedrooms
£2,750/mo
↑ +3.6% / yr
4+ bedrooms
£3,378/mo
↑ +3.4% / yr
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
£1,225
Band B
£1,430
Band C
£1,634
Band D
£1,838
Band E
£2,246
Band F
£2,655
Band G
£3,063
Band H
£3,676
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
Deprivation (IMD 2025)
169 neighbourhoods
13% of Tower Hamlets's neighbourhoods are in England's most deprived 10%. The typical one sits in the more deprived half of the country.
Fifths of England, most to least deprived (MHCLG IMD 2025). It shifts street by street, so check a specific postcode.
59 Article 4 areas are recorded in Tower Hamlets, none of them tagged as restricting HMO conversions; 59 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 Tower Hamlets average. Change them for a real property.
That is right on the Tower Hamlets average of 6.6%. Add costs for a net estimate.
Nearby areas
Areas with a similar yield
Common questions
Is Tower Hamlets a good place to buy to let?
On income alone it is among the strongest areas in England and Wales, at a 6.6% 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 Tower Hamlets?
Over the past year, average rents in Tower Hamlets rose 3.5% and average prices fell 14.4% (HM Land Registry and ONS, to August 2026).
Is there rental demand in Tower Hamlets?
Rent movement is the best free proxy for tenant demand, and average rents in Tower Hamlets rose 3.5% 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, 38.2% of Tower Hamlets's 120,539 households rented privately (35.9% social rented, 23.1% owner occupied).
What is the average rent for a 1, 2 or 3 bedroom property in Tower Hamlets?
As of August 2026, average monthly rents in Tower Hamlets by property size are £1,992 for a 1 bedroom property, £2,418 for a 2 bedroom property, £2,750 for a 3 bedroom property, £3,378 for a 4 or more bedroom property (ONS). The all-size average is £2,453 a month.
How much is council tax in Tower Hamlets?
In 2026-27, the average Band D council tax in Tower Hamlets is £1,838 a year including police and other precepts. Bills scale with the property's band: from £1,225 for Band A up to £3,676 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 Tower Hamlets?
On the English Indices of Deprivation 2025, 13% of Tower Hamlets's 169 neighbourhoods are in England's most deprived 10%, and 1% 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. Tower Hamlets is at 6.6%.
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.