Best Area for Buy to Let Near East London

Investing in property is considered to be one of the most stable types of investments. In addition to generating rental income, property values tend to increase over time, providing capital growth.

However, one of the important considerations before purchasing a buy-to-let investment is which location to choose, as this will impact both the achievable rent and the potential for capital appreciation. Another factor will be the affordability of the property. While central London properties have higher prices, in areas of east London such as Leyton, Ilford and Stratford, properties are more affordable.

If you are considering where to purchase a buy-to-let property, having a good understanding of property prices, rental demand levels and average rents in areas will help to find a property in London that will deliver the best returns on your investment.

Read on for a current overview of the buy-to-let rental market near east London.

Why invest in east London buy-to-lets?

The east London property market offers a diverse option of property types to suit a wide range of different tenant types. Properties in east London are more affordable than central London locations, and excellent transport links into the City make the area very appealing to tenants.

Many areas of east London are also undergoing regeneration, which often helps to increase property prices in the area to provide property investors with higher capital growth.

The average rental yield in some areas of east London is also favourable compared to other parts of London. We cover the areas with the highest yields in the sections below.

What makes an area ideal for buy-to-let investment?

Some of the key factors that influence whether an area is ideal for buy-to-let property investment include:

• Affordable property prices
• Potential for high rental yield
• Strong tenant demand
• Good transport links and amenities
• Regeneration projects and employment opportunities
• Evidence of stable house price growth
• Good schools in the area

Want to know more? Staying compliant with the Renters’ Rights Act goes hand in hand with understanding the broader changes — read our full guide to preparing for the Renters’ Rights Bill and ensure your electrical safety certificates are also up to date.

Areas to invest in buy to let in east London

Based on the factors listed above, these are some of the best areas to purchase buy-to-let property in east London:

1. Barking and Dagenham

Properties in Barking and Dagenham are some of the most affordable in London. The average house price in Barking and Dagenham was £361,000 in July 2025, showing an increase of 7.7% over 12 months. With a monthly average rent of £1,655, the annual rent inflation has been significantly higher at 13.3%, compared to the London average of 5.7%.

The rental yield in parts of Barking and Dagenham can be as high as 6-7%. Regeneration projects such as the development at Barking Riverside and a plan to provide 20,000 new jobs in the next 20 years are attracting relocators to the area.

Properties for sale in the area include modern apartments in Mulberry Circus, perfect for professionals working in the City with just a 20-minute commute. There is also a large selection of larger semi-detached and detached properties for families.

2. Newham

The average house price in Newham is a higher at £420,000 but average rent is also higher at £1,874 (based on ONS data July 2025). Average rental yields of around 6% represent a good comparative yield amount compared to the overall London average.

There are good transport links in Newham providing a 30-minute journey into London on the Tube lines. Newham Council is delivering a High Streets Improvements strategy, investing in improving the local amenities. House prices in Newham increased by around 100% between 2013 and 2023 and while house price growth has slowed in the last two years, the excellent transport links, regeneration projects and access to green spaces ensure that rental demand remains high.

There is a good choice of apartments in Canary Wharf and the London City Island, as well as larger properties within close proximity of the University of East London, which are ideal for shared student accommodation.

3. Redbridge

Some parts of Redbridge can provide rental yields of around 6% and the area is a popular place to live for families looking for good quality schools. The average house price in Redbridge in July 2025 was £490,000, with an average monthly rent of £1,693.

Redbridge was listed as one of the best places to live in the UK in 2025 by The Sunday Times, partly due to the high percentage of Outstanding schools in the area. There is a good choice of large detached and semi-detached properties in Redbridge suitable for families, while there are also luxury apartments in areas such as Woodford Green.

There has been a lot of improvement work completed in Redbridge recently, including a new bridge over River Roding and the creation of a riverside route from the bridge to Barking and Wanstead.

4. Waltham Forest

While the rental yields in Waltham Forest are not as high as some parts of east London, some areas still offer around a 5% yield. However, property experts have predicted that the Levelling Up regeneration projects taking place in the area will help to drive house price growth up in upcoming years, so buy-to-let investors could see additional financial gains through property appreciation.

Want to find out more? It’s equally important to know your rights when things go wrong — explore our guide to evicting a tenant in East London and how to resolve a tenancy deposit dispute fairly.

The average house price in Waltham Forest was £513,000 and the average monthly rent £1,738, as recorded in July 2025. There is a vibrant community atmosphere in Waltham Forest, with lots of family-friendly activities and amenities. Residents also benefit from a good choice of green spaces and easy access to Epping Forest.

The property stock in Waltham Forest is very diverse, including modern apartments and Victorian terraced houses ,and the travel time into London is around 30 minutes by the Tube.

Understand the best areas for buy to let in east London?

We can help with your investment projects in south east and north east London by sharing our list of suitable buy-to-let properties in areas including Leytonstone, Forest Gate and East Ham.

Get in touch for more information.