The average gross rental yield in London is indicatively around 4.8%. That figure comes from a typical London property price of £525,000 and a median monthly rent of £2,100 (Greater London) — i.e. £2,100 × 12 ÷ £525,000 × 100.
Source: VOA/ONS Private Rental Market Statistics & HM Land Registry UK House Price Index. Data as of 2024; page last updated 2026-09-16.
Want your own numbers? Open the rental yield calculator pre-filled with London figures — it's free, and you can adjust the price, rent and costs to match a specific property.
Gross yields vary a lot by property size. Using London's £525,000 average price against the median rent for each property size gives an indicative gross yield:
| Bedrooms | Median monthly rent | Indicative gross yield |
|---|---|---|
| 1 bed | £1,650 | 3.8% |
| 2 beds | £2,100 | 4.8% |
| 3 beds | £2,600 | 5.9% |
| 4 beds | £3,400 | 7.8% |
Greater London medians, VOA/ONS Private Rental Market Statistics & HM Land Registry UK House Price Index (2024).
At around 4.8%, London's indicative gross yield sits below the roughly 5.96% UK average — common in higher-price areas, where investors often weigh yield against expected capital growth. Remember that net yield — after mortgage, maintenance, agency fees, insurance and other costs — is what really matters, and our calculator works that out too.
Ready to run the numbers? Calculate London rental yield now.
The median monthly rent in London is around £2,100, with £1,650 for a 1-bedroom and £3,400 for a 4-bedroom. Figures are medians for the wider Greater London area (2024), not a specific property.
The indicative gross rental yield in London is around 4.8%, against a UK average of roughly 5.96%. That is a gross figure: annual rent as a percentage of the purchase price, before any costs are deducted.
It depends on what you are optimising for. London's indicative gross yield of 4.8% sits below the roughly 5.96% UK average, which happens where prices have run ahead of rents and investors are weighing yield against expected capital growth. Net yield - after mortgage, maintenance, agency fees and insurance - is what you actually keep, so run your own costs through the calculator before committing.
A 2-bedroom property in London lets for a median of £2,100 a month. Against the £525,000 average price that is an indicative gross yield of 4.8% before any costs.
Methodology: figures are indicative and hand-transcribed from VOA/ONS Private Rental Market Statistics & HM Land Registry UK House Price Index (2024). Rents and prices are medians and averages for the wider Greater London area, not a specific property, and the underlying surveys are not directly comparable across areas or over time. Always check current listings and get professional advice before investing.