What Is the Current Average Rental Yield in North London?

• If you’re a landlord or would-be investor, the big question for 2026 is simple: what kind of rental yield can I realistically expect in North London – and is it still worth it?

Despite tax changes and higher interest rates in recent years, the buy-to-let sector remains supported by strong tenant demand and rising rents. Across the UK, average gross rental yields are now around 6–7%, depending on the source and quarter. London, as usual, sits below that national figure – but parts of North London still offer competitive returns, especially where prices have cooled, but rents remain high.

Let’s break down what the average rental yield in North London in 2025 has looked like, and what it means for investors going into Q1 of 2026. Stadium residential has been working with rental properties for a collective of over 90 years. Our local knowledge is second to none, and our dedicated team are on hand to help buyers, investors, and renters alike to fulfil their goals going into the new year.

A quick refresher: what is rental yield?

Gross rental yield is:

(Annual rent ÷ Purchase price) × 100

So, if a flat costs £500,000 and generates £2,500 per month (£30,000 per year), the gross yield is 0.5%. Net yield goes further, subtracting costs such as service charges, insurance, maintenance, letting fees and mortgage interest. When comparing areas, most headlines quote gross yield, so we’ll stick with that here.

London vs UK: where does North London sit after 2025?

Based on the previous 12 months’ trending, several 2025 reports showed that:

•  The average gross rental yield across the UK was roughly 6–7%, up from around 5–6% in 2024.
• London typically delivers 4–6.5% gross yield on average – lower than northern cities, but still attractive when combined with long-term capital growth and strong tenant demand.

That already tells you a lot: if the UK average is about 6–7% and London averages 4–6.5%, then North London’s “typical” yields will usually fall somewhere in the mid-4s to mid-5s, with some outliers both above and below.

What is the current average rental yield in North London?

There’s no single published North London yield figure, because the area includes very different markets, from prime Islington and Highbury to more affordable parts of Enfield or Tottenham. However, we do have good postcode-level data that allows us to build a realistic range.

Islington & Highbury: strong demand, lower yields 

Recent buy-to-let analysis for Islington suggests:

• N1 (Islington) – average prices around £749,000 with gross yields of about 4.6%.
• N5 (Highbury) – typical yields closer to 4.5%, and one 2025 investment guide estimates Highbury’s average yield at around 3%, reflecting very high capital values.

Official data from the ONS show that, overall in Islington, the average house price in September 2025 was approximately £684,000, and the average private rent in October 2025 was £2,708 per month.

That implies a borough-wide gross yield of roughly 4.7% – pretty much in line with the figures above.

Enfield & Tottenham: higher yields, lower entry prices

Move further north, and the picture changes:

• In N18 (Edmonton / Enfield), average prices around £398,000 and yields of about 5.6% have been reported – attractive for investors willing to look beyond the most central postcodes.
• Nearby Tottenham (N17) is regularly cited among the best-performing areas of London, with yields of around 6.5%thanks to relatively modest prices and strong rental demand.

These areas highlight a key pattern in North London: more “prime” locations tend to have lower yields but stronger capital values, while more affordable districts can deliver higher yields but may see slower long-term price growth.

So, what’s a reasonable average for North London?

Putting this data together:

• Prime North London (Islington / Highbury / parts of Camden): ≈ 3–4.7%
• Mainstream family areas (Barnet, Haringey, much of Enfield): often ≈ 4.5–5.5%+, with hotspots like Tottenham pushing around 6%+

A sensible working assumption for 2025 is that average gross rental yields in North London sat in the region of 4–5.5%, depending on the borough and property type. Top-performing pockets nudging towards 6–6.5%.

Why did yields hold up – or improve?

Several structural trends have supported rental yields in 2025:

• Rents keep rising faster than prices. UK private rents rose sharply through 2023–24, and although growth has slowed, they remain at record levels.
• Tenant demand is intense. Industry reports indicated that multiple tenants occupy each available property, and buy-to-let mortgage data for early 2025 suggests strong investor interest, driven by high rental yields.
• Some landlords have exited the market, but that’s reduced supply, putting further upward pressure on rents and supporting yields for those who remain.

In London, where wage growth and population pressures remain strong, this combination means that even if yields appear modest compared to northern cities, gross yields of 4.5–6% in North London can still stack up well, especially when factoring in capital growth and long-term demand.

What has been a “good” rental yield in North London in 2025?

Context matters. For London:

• Many analysts suggest that anything above 5.5% is considered very good and yields over 6% places you in the top tier of London performance.
• In North London, this typically means looking at emerging or regenerating areas, such as parts of Enfield, Haringey, and some fringes, rather than the most established prime postcodes.

But yield isn’t everything. When deciding where to invest, you should balance:

• Yield vs capital growth potential
• Tenant profile (families, professionals, students)
• Void risk and rental stability
• Property type and condition
• Local regeneration and infrastructure plans

Key takeaways for investors going into 2026

So, looking at the year 2025, it is important to take away the three following points:

• Average gross rental yields in North London in 2025 are broadly around 4–5.5%, with certain postcodes (like Tottenham or parts of Enfield) closer to 6%+.
• Prime areas, such as Highbury and central Islington, often deliver lower yields (≈approximately 3–4.5%) but strong long-term capital prospects.
• Elevated rents, limited rental supply and stabilising sale prices mean 2025 can still offer attractive opportunities for carefully chosen North London buy-to-lets.

Our advice: If you’re assessing a specific property, run the numbers: calculate the gross yield using realistic rent, then adjust for costs to estimate your net yield. Compare that to the ranges above, and you’ll have a solid benchmark for whether a North London investment in 2026 really stacks up, based on the previous 12 months trending.

As with all statistics and trends, they aren’t a total indicator of forecasting for the next year. As experienced estate agents, we have seen many times that what looks good on paper may not indicate continuation in the future. The 2008 crash would be a prime example.

However, signs still look promising for investors, and London investments themselves can be viewed as more akin to bonds rather than risky assets, given the capitalisation of our nation. If you would like to learn more about the properties in Highbury and Holloway that may suit your investment needs, please contact our team today.