Average Rent, House Prices and Buy-to-Let Yield in Southwark (July 2026)
The average private rent in Southwark is £2,431 a month (ONS, July 2026) and the average house price £582,473 (HM Land Registry, June 2026): a gross yield of 5.0%, ranked 83 of 316 local authorities.
Rent in Southwark
The average private rent across all property types is £2,431 a month (+3.8% on a year earlier). The regional median in London is £1,962.
| Property | Per month | Per year |
|---|---|---|
| 1 bedroom | £1,843 | £22,116 a year |
| 2 bedrooms | £2,306 | £27,672 a year |
| 3 bedrooms | £2,683 | £32,196 a year |
| 4+ bedrooms | £3,544 | £42,528 a year |
The bedroom ladder in Southwark: one to two bedrooms adds 25.1% to the rent, two to three adds 16.3% and three to four-plus adds 32.1% (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 Southwark
The average price paid is £582,473 (+2.2% on a year earlier).
| Type | Average price |
|---|---|
| Detached | £1,745,793 |
| Semi-detached | £1,240,119 |
| Terraced | £849,890 |
| Flat | £478,867 |
Rents are outrunning prices in Southwark. Rents moved +3.8% over the year against +2.2% for prices — a gap of 1.6 points that lifts the gross yield a buyer sees today. Southwark ranks 165th of 316 local authorities for rent growth and 188th of 316 for price growth; the England-and-Wales medians are +3.8% and +2.8%.
Gross yield by property type in Southwark
| Type | Rent / month | Average price | Gross yield | E&W median |
|---|---|---|---|---|
| Flat | £2,306 | £478,867 | 5.8% | 7.5% |
| Terraced house | £2,683 | £849,890 | 3.8% | 5.7% |
| Semi-detached | £2,683 | £1,240,119 | 2.6% | 4.6% |
| Detached | £3,544 | £1,745,793 | 2.4% | 4.1% |
On these pairings the strongest gross yield in Southwark is on flats at 5.8%, 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 5.0% (rent × 12 ÷ price) — rank 83 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 £72,930 a year for the average rent.
- EPC before 2030: 25% of EPCs lodged in Southwark over the last year were below band C — the level a rented home needs by 1 October 2030 — with 22% at D (EPC ratings in Southwark).
- Council tax: Band D in Southwark is £1,967 for 2026/27, and the council charges a 100% second-home premium (council tax in Southwark).
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 £2,431 supports a loan of about £365,793, which is 62.8% 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 Southwark
- Yield calculator with £582,473 and £2,431 already filled in
- Mortgage stress test at 75% LTV on the average price
- Rent affordability: the income a tenant needs to reference at £2,431 a month
- Rental income tax on £29,172 a year of rent
Nearest neighbours by yield, in London
| Area | Rent | Price | Yield | Rent 12m |
|---|---|---|---|---|
| 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% |
| Croydon | £1,581 | £394,736 | 4.8% | +3.3% |
| Enfield | £1,821 | £471,019 | 4.6% | +5.1% |
| Hammersmith and Fulham | £2,796 | £725,562 | 4.6% | +1.9% |
All 316 areas ranked · council tax in Southwark · EPC ratings in Southwark.
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
£2,431 a month across all property types (ONS Price Index of Private Rents, July 2026), up 3.8% on a year earlier.
£582,473 (HM Land Registry UK House Price Index, June 2026).
About 5.0% gross on the averages — £2,431 rent against a £582,473 price — ranking 83 of 316 local authorities. Net yield depends on your mortgage and costs.
Flats on our pairing: 5.8% gross (£2,306 rent on a £478,867 price), against an England-and-Wales median of 7.5% for that type.
Rents +3.8% against prices +2.2% over the year — rents ahead, so yield is rising for a buyer today.
Referencing at 30 times the monthly rent points to roughly £72,930 a year of household income for the average home; the affordability calculator shows 24× and 36× too.