Average Rent, House Prices and Buy-to-Let Yield in Newham (July 2026)
The average private rent in Newham is £1,927 a month (ONS, July 2026) and the average house price £403,032 (HM Land Registry, June 2026): a gross yield of 5.7%, ranked 20 of 316 local authorities.
Rent in Newham
The average private rent across all property types is £1,927 a month (+2.8% on a year earlier). The regional median in London is £1,962.
| Property | Per month | Per year |
|---|---|---|
| 1 bedroom | £1,630 | £19,560 a year |
| 2 bedrooms | £1,992 | £23,904 a year |
| 3 bedrooms | £2,210 | £26,520 a year |
| 4+ bedrooms | £2,671 | £32,052 a year |
The bedroom ladder in Newham: one to two bedrooms adds 22.2% to the rent, two to three adds 10.9% and three to four-plus adds 20.9% (England-and-Wales medians 27.3%, 20.9% and 40.9%). The biggest step here is one to two 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 Newham
The average price paid is £403,032 (-0.7% on a year earlier).
| Type | Average price |
|---|---|
| Detached | £744,160 |
| Semi-detached | £512,536 |
| Terraced | £467,713 |
| Flat | £338,968 |
Rents are outrunning prices in Newham. Rents moved +2.8% over the year against −0.7% for prices — a gap of 3.5 points that lifts the gross yield a buyer sees today. Newham ranks 224th of 316 local authorities for rent growth and 266th of 316 for price growth; the England-and-Wales medians are +3.8% and +2.8%.
Gross yield by property type in Newham
| Type | Rent / month | Average price | Gross yield | E&W median |
|---|---|---|---|---|
| Flat | £1,992 | £338,968 | 7.1% | 7.5% |
| Terraced house | £2,210 | £467,713 | 5.7% | 5.7% |
| Semi-detached | £2,210 | £512,536 | 5.2% | 4.6% |
| Detached | £2,671 | £744,160 | 4.3% | 4.1% |
On these pairings the strongest gross yield in Newham is on flats at 7.1%, 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 5.7% (rent × 12 ÷ price) — rank 20 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 £57,810 a year for the average rent.
- EPC before 2030: 32% of EPCs lodged in Newham over the last year were below band C — the level a rented home needs by 1 October 2030 — with 30% at D (EPC ratings in Newham).
- Council tax: Band D in Newham is £1,944 for 2026/27, and the council charges a 100% second-home premium (council tax in Newham).
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 £1,927 supports a loan of about £289,956, which is 71.9% 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 Newham
- Yield calculator with £403,032 and £1,927 already filled in
- Mortgage stress test at 75% LTV on the average price
- Rent affordability: the income a tenant needs to reference at £1,927 a month
- Rental income tax on £23,124 a year of rent
Nearest neighbours by yield, in London
| Area | Rent | Price | Yield | Rent 12m |
|---|---|---|---|---|
| Tower Hamlets | £2,439 | £456,898 | 6.4% | +3% |
| Lambeth | £2,519 | £548,034 | 5.5% | +4.2% |
| Barking and Dagenham | £1,696 | £371,030 | 5.5% | +2.8% |
| Hackney | £2,644 | £605,442 | 5.2% | +3.2% |
| Greenwich | £1,980 | £465,132 | 5.1% | +5.6% |
| Islington | £2,854 | £673,384 | 5.1% | +5.9% |
All 316 areas ranked · council tax in Newham · EPC ratings in Newham.
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
£1,927 a month across all property types (ONS Price Index of Private Rents, July 2026), up 2.8% on a year earlier.
£403,032 (HM Land Registry UK House Price Index, June 2026).
About 5.7% gross on the averages — £1,927 rent against a £403,032 price — ranking 20 of 316 local authorities. Net yield depends on your mortgage and costs.
Flats on our pairing: 7.1% gross (£1,992 rent on a £338,968 price), against an England-and-Wales median of 7.5% for that type.
Rents +2.8% against prices −0.7% over the year — rents ahead, so yield is rising for a buyer today.
Referencing at 30 times the monthly rent points to roughly £57,810 a year of household income for the average home; the affordability calculator shows 24× and 36× too.