Average Rent, House Prices and Buy-to-Let Yield in Merton (July 2026)
The average private rent in Merton is £2,153 a month (ONS, July 2026) and the average house price £612,681 (HM Land Registry, June 2026): a gross yield of 4.2%, ranked 194 of 316 local authorities.
Rent in Merton
The average private rent across all property types is £2,153 a month (+4.6% on a year earlier). The regional median in London is £1,962.
| Property | Per month | Per year |
|---|---|---|
| 1 bedroom | £1,624 | £19,488 a year |
| 2 bedrooms | £2,006 | £24,072 a year |
| 3 bedrooms | £2,385 | £28,620 a year |
| 4+ bedrooms | £3,239 | £38,868 a year |
The bedroom ladder in Merton: one to two bedrooms adds 23.5% to the rent, two to three adds 18.9% and three to four-plus adds 35.8% (England-and-Wales medians 27.3%, 20.9% and 40.9%). The biggest step here is three to four or more bedrooms — the size where an extra room earns most, and the first place to look when comparing a conversion against its cost.
House prices in Merton
The average price paid is £612,681 (+0.5% on a year earlier).
| Type | Average price |
|---|---|
| Detached | £2,258,176 |
| Semi-detached | £942,628 |
| Terraced | £682,340 |
| Flat | £405,380 |
Rents are outrunning prices in Merton. Rents moved +4.6% over the year against +0.5% for prices — a gap of 4.1 points that lifts the gross yield a buyer sees today. Merton ranks 129th of 316 local authorities for rent growth and 235th of 316 for price growth; the England-and-Wales medians are +3.8% and +2.8%.
Gross yield by property type in Merton
| Type | Rent / month | Average price | Gross yield | E&W median |
|---|---|---|---|---|
| Flat | £2,006 | £405,380 | 5.9% | 7.5% |
| Terraced house | £2,385 | £682,340 | 4.2% | 5.7% |
| Semi-detached | £2,385 | £942,628 | 3% | 4.6% |
| Detached | £3,239 | £2,258,176 | 1.7% | 4.1% |
On these pairings the strongest gross yield in Merton is on flats at 5.9%, against an England-and-Wales median of 7.5% for that type; the weakest is detached. Gross figures ignore service charges, which usually make flats the thinnest net yield of the four.
What that means for a landlord
- Gross yield 4.2% (rent × 12 ÷ price) — rank 194 of 316 local authorities; the regional median is 4.5%. Net yield is lower once mortgage interest, insurance, maintenance and voids come off.
- Tenant affordability: referencing at 30× means a household income of about £64,590 a year for the average rent.
- EPC before 2030: 35% of EPCs lodged in Merton over the last year were below band C — the level a rented home needs by 1 October 2030 — with 31% at D (EPC ratings in Merton).
- Council tax: Band D in Merton is £2,147 for 2026/27, and the council charges a 100% second-home premium (council tax in Merton).
Lender maths on the averages. At a 5.5% stress rate and 145% rent cover — the common buy-to-let convention — the average rent of £2,153 supports a loan of about £323,962, which is 52.9% of the average price. That falls short of 75% loan-to-value, so a buyer of an average home here needs a larger deposit or a stronger rent to pass the stress test. Both numbers are conventions rather than rules — change them in the stress test.
Run the numbers for Merton
- Yield calculator with £612,681 and £2,153 already filled in
- Mortgage stress test at 75% LTV on the average price
- Rent affordability: the income a tenant needs to reference at £2,153 a month
- Rental income tax on £25,836 a year of rent
Nearest neighbours by yield, in London
| Area | Rent | Price | Yield | Rent 12m |
|---|---|---|---|---|
| Lewisham | £1,828 | £491,259 | 4.5% | +2.4% |
| Brent | £2,012 | £544,174 | 4.4% | +2% |
| Ealing | £2,085 | £575,814 | 4.3% | +2.2% |
| Haringey | £2,213 | £634,444 | 4.2% | +1.5% |
| Sutton | £1,553 | £446,775 | 4.2% | +2% |
| Redbridge | £1,724 | £495,977 | 4.2% | +2.1% |
All 316 areas ranked · council tax in Merton · EPC ratings in Merton.
Rents: ONS, Price Index of Private Rents (average monthly private rent by local authority, July 2026). Prices: HM Land Registry UK House Price Index (average price, June 2026). Gross yield = rent × 12 ÷ price, our calculation. Contains public sector information licensed under the Open Government Licence v3.0; contains HM Land Registry data © Crown copyright and database right 2026. Rankings and medians are ours, across 316 local authorities.
Asked about this area
£2,153 a month across all property types (ONS Price Index of Private Rents, July 2026), up 4.6% on a year earlier.
£612,681 (HM Land Registry UK House Price Index, June 2026).
About 4.2% gross on the averages — £2,153 rent against a £612,681 price — ranking 194 of 316 local authorities. Net yield depends on your mortgage and costs.
Flats on our pairing: 5.9% gross (£2,006 rent on a £405,380 price), against an England-and-Wales median of 7.5% for that type.
Rents +4.6% against prices +0.5% over the year — rents ahead, so yield is rising for a buyer today.
Referencing at 30 times the monthly rent points to roughly £64,590 a year of household income for the average home; the affordability calculator shows 24× and 36× too.
Postcode districts in Merton
Council tax bands, sold prices and build periods for each district — all CR postcodes · all SM postcodes · all SW postcodes.