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Rental yields›Watford

Rental yield in Watford

Watford sits in the upper half for rental yield in England and Wales, a bit above the 4.4% typical figure across all 316 areas.

Over the past year, average prices in Watford rose 2.8% and average rents rose 3.4%.

Gross yield

5.5%

Average price

£396,385

↑ +2.8% / yr

Average rent

£1,823/mo

↑ +3.4% / yr

National rank

#31 of 316

Who rents here

Census 2021, 39,629 households

28.2% of homes in Watford are private rentals.

Private rented 28.2%Social rented 15.6%Owner occupied 55.1%

Average rent by size

1 bedroom

£1,263/mo

↑ +3.4% / yr

2 bedrooms

£1,595/mo

↑ +3.3% / yr

3 bedrooms

£1,819/mo

↑ +3.8% / yr

4+ bedrooms

£2,642/mo

↑ +2.7% / yr

1 bed£1,263
2 beds£1,595
3 beds£1,819
4+ beds£2,642

Average advertised rent by number of bedrooms. ONS Price Index of Private Rents (2026-07).

Council tax bands (2026-27)

Band A

£1,631

Band B

£1,903

Band C

£2,175

Band D

£2,447

Band E

£2,991

Band F

£3,535

Band G

£4,078

Band H

£4,894

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.

Work out the yield on a specific property

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

Gross yield5.5%

That is right on the Watford average of 5.5%. Add costs for a net estimate.

How it compares

Watford5.5%
Highest (Newcastle upon Tyne)6.9%
Typical (median)4.4%
Lowest (Derbyshire Dales)2.8%

Areas with a similar yield

Birmingham 5.6%Blaenau Gwent 5.6%Gloucester 5.5%South Tyneside 5.5%Coventry 5.5%Sandwell 5.5%
See it on the yield mapWork out a specific dealCheck this area

Common questions

Is Watford a good place to buy to let?

It is around the middle for rental income, at a 5.5% average gross yield. Whether it works depends on the specific property, so always run the actual numbers.

Are rents rising in Watford?

Over the past year, average rents in Watford rose 3.4% and average prices rose 2.8% (HM Land Registry and ONS, to 2026-07).

Is there rental demand in Watford?

Rent movement is the best free proxy for tenant demand, and average rents in Watford rose 3.4% 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, 28.2% of Watford's 39,629 households rented privately (15.6% social rented, 55.1% owner occupied).

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

As of 2026-07, average monthly rents in Watford by property size are £1,263 for a 1 bedroom property, £1,595 for a 2 bedroom property, £1,819 for a 3 bedroom property, £2,642 for a 4 or more bedroom property (ONS). The all-size average is £1,823 a month.

How much is council tax in Watford?

In 2026-27, the average Band D council tax in Watford is £2,447 a year including police and other precepts. Bills scale with the property's band: from £1,631 for Band A up to £4,894 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.

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. Watford is at 5.5%.

Weighing up Watford? 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 (01/06/2026). Average rent: ONS Price Index of Private Rents (2026-07). Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.

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