London remains a competitive lettings market, especially in certain areas where demand, transport links, and prestige push rent levels high.
If you’re considering guaranteed rent schemes, these are some of the top hotspots where landlords regularly achieve strong rental income, and why they stand out.
Recent figures from the Office for National Statistics reveal that London has the highest private rent inflation of all English regions, rising by 9.9% year-on-year to February 2025. The average monthly rent in London is about £2,235 (Office for National Statistics).
Meanwhile, rental yield data highlight that while central London tends to have very high rents, yields (rental income vs property cost) are often stronger in outer or regenerated areas.
The best yields (above 5%) are being seen in East and South East London, including areas like:
This is likely due to regeneration efforts, the introduction of the Elizabeth Line, and corporate tenant demand (RPA Group LLC).
If your property is in prime central London areas (Mayfair, Marylebone, Belgravia, Knightsbridge, Kensington, etc.), rent levels tend to be extremely high. Luxury lettings in Mayfair and Marylebone have accounted for more than one-third of luxury letting deals in London in the first half of 2025.
But despite the high absolute rents in these areas, gross yields are often lower because property prices are so high.
If you’re after guaranteed rent in London, looking at East Ham, Woolwich, Stratford, and Tottenham gives you some of the best balance between good income and manageable risk. Central London gives prestige and high rent, but you’ll want to check whether yields justify the cost.
