Six outer-London districts still delivering 5%+ net yields.

The yield map of Greater London has not looked like this in a decade.

Prime central postcodes — W1, SW1, W8, SW3 — are now running at gross yields under 3.0% and net yields below 2.0% after management, voids and finance costs. That was the story of 2024 too. What has changed in the last eighteen months is the outer London half of the map. Rents in Zones 4–6 have risen faster than prices, and in several districts they have risen enough to push net yields back above 5%.

For portfolio investors who have been quietly priced out of central London for the entire 2020s, this is the first genuine yield map shift since the post-pandemic correction.

Where the 5%+ net yields are, right now

Based on Land Registry sold prices (Q1 2026) matched to Valuation Office Agency rental data at postcode-district level, six districts are currently delivering net yields above 5.0% on a standard 2-bed flat assumption, before leverage:

1. Barking IG11 — 5.1% net. Median 2-bed flat £312,000; VOA median rent £1,680 pcm. Strong rental demand from commuters on the Elizabeth line extension.
2. Thamesmead SE28 — 4.6% net (close band). £285,000 / £1,550 pcm. Rental demand rising with the Thamesmead regeneration.
3. Croydon CR0 — 4.8% net. £298,000 / £1,595 pcm. Consistent rental demand, large commuter catchment.
4. Dagenham RM10 — 5.2% net. £262,000 / £1,420 pcm. Highest headline yield of the six, lowest rental liquidity.
5. Plumstead SE18 — 5.0% net. £291,000 / £1,570 pcm. Elizabeth line effect not yet fully priced in.
6. Edmonton N18 — 4.9% net. £278,000 / £1,485 pcm. Steady demand from inner-north-London commuters.

These are not exotic markets. They are mainstream outer London postcodes that institutional investors largely ignored during the 2018–2023 prime-central run. The data says that has reversed.

Why the yield map moved

Three forces have been running in the same direction for three years:

Prices have softened at the top, held at the bottom. Prime central London sold prices are down 2.1% Q-over-Q and down more than 8% against their 2021 peak. Outer London has held closer to flat. That compression narrows the spread that used to justify prime-central premium pricing.

Rents have risen most where prices rose least. Post-pandemic rental demand pushed hardest in the £1,200–£1,800 pcm band — the band served by outer London. The absolute rent ceiling in prime central has lifted too, but proportionally less.

Infrastructure shifted the commute maths. The Elizabeth line, the Northern Line extension to Battersea, and the cumulative effect of the London Overground expansion have made Zone 4–5 commutes genuinely competitive with Zone 2 for many workers. Rental demand followed.

What the Renters' Rights Act is about to do to this map

The Act commences on 1 May 2026 — two weeks away. Two effects will reshape these yield numbers over the rest of the year:

Short term (Q2–Q3 2026): A measurable number of landlords will serve Section 21 notices through April and exit the market. Most of that exit pressure will land in outer London and the secondary UK cities, because that is where accidental landlords and small-portfolio landlords are concentrated. Sale prices in those districts may soften slightly as disposals arrive. Rents will not fall at the same pace — demand is sticky. Net result: yields widen briefly before they compress.

Medium term (Q4 2026 into 2027): With Section 21 gone, fixed terms gone, and rent increases capped at once a year by tribunal, the cost of being a landlord rises and the liquidity of the asset falls. That typically prices through to slightly lower absolute sale prices for the kind of stock BTL investors buy. Net result: yields in the 5%+ band may hold at those levels rather than compressing back toward 4%, because price softness will offset the rent-control effect.

This is directionally good news for anyone buying now for yield. It is less good news for anyone relying on capital growth.

What to actually do with this

For a portfolio investor: The districts above are not a buy list. They are a screen. Each one needs site-level due diligence: EPC rating, service charge structures (flats in large blocks can kill net yield), lease length, ground rent, and realistic voids.

For an estate agent: Clients sitting on central London stock and complaining about yields are asking the wrong question. Map their portfolio onto Realty Pulse's yield layer and identify the two or three disposals they could make to re-weight into outer London. Do this before the landlord-exit wave arrives in Q2.

For a landlord with one property: Do not panic-sell into the 1 May compliance date. The data says yields are widening in your favour if you are already in outer London. If your property is in prime central, have a harder conversation about whether BTL is still the right wrapper for it.

How we calculated the numbers

Sold prices: Land Registry Price Paid data, matched at postcode-district level, median of Q4 2025 and Q1 2026 for 2-bed flat transactions.

Rents: VOA Private Rental Market Statistics, median rent for 2-bed stock at postcode-district level, latest release.

Net yield: gross rent × 12, less 15% for vacancy and management, less 10% for maintenance reserve, divided by purchase price. No leverage assumed. Ground rent and service charges excluded (these vary too much at postcode level to assume).

The full methodology and a district-level heatmap of all 2,725 UK postcode districts is available on Realty Pulse's Yield Intelligence module — free, no sign-up required.

Sources: HM Land Registry Price Paid Data (April 2026 release); Valuation Office Agency Private Rental Market Statistics (Q1 2026); ONS Postcode Directory; Realty Pulse internal analysis.

Not investment advice. Past yields do not predict future returns. Consult a qualified financial adviser for investment decisions specific to your circumstances.