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In This Guide
Across East London and its commuter corridor, the rental market is defying national trends. While supply across the UK has grown 15% year-on-year, parts of East London remain chronically undersupplied — with properties letting in under three weeks and yields outpacing the national average.
In this exclusive Q4 2025 analysis, Unity Investments examines 25 key commuter markets to identify where investor returns are holding strongest, which areas are showing signs of oversupply, and where the next wave of growth may occur.
The data reveals striking contrasts: Tilbury with just two available two-bed rentals; Barking achieving 8%+ yields; and commuter towns such as Basildon and Luton absorbing tenants priced out of inner London. For investors seeking sustainable yield, these findings matter.
Read on for the executive summary and headline data from our East London & Commuter Corridor Rental Demand Report.
Across East London and its commuter corridor, the rental market is defying national trends. While supply across the UK has grown 15% year-on-year, parts of East London remain chronically undersupplied — with properties letting in under three weeks and yields outpacing the national average.
In this exclusive Q4 2025 analysis, Unity Investments examines 25 key commuter markets to identify where investor returns are holding strongest, which areas are showing signs of oversupply, and where the next wave of growth may occur.
The data reveals striking contrasts: Tilbury with just two available two-bed rentals; Barking achieving 8%+ yields; and commuter towns such as Basildon and Luton absorbing tenants priced out of inner London. For investors seeking sustainable yield, these findings matter.
Read on for the executive summary and headline data from our East London & Commuter Corridor Rental Demand Report.
Rental demand across East London and its commuter belt remains robust, driven by migration from higher-cost inner boroughs and a sustained shortfall in new housing supply. Despite broader national cooling, this region continues to deliver above-average gross yields and accelerated let times - particularly in mid-tier towns with strong transport connectivity.
2% net yields can deliver 7 to 8% ROCE using leverage
Return on investment focuses on your capital, not the property’s total value
Higher-priced areas may offer lower rental ROCE but strong capital growth
Tax efficiency and company structures can improve overall returns
Our ROI calculator helps model real-world UK property scenarios
Rightmove’s Q3 2025 national rental data painted a picture of rebalancing. Supply increased 15% year-on-year, and properties took an average of 25 days to let, up from 21 days in 2024. The average rental property received 11 enquiries, down from 16 last year. Almost a quarter of properties required price reductions, the highest since 2017.
But these national averages mask a very different reality closer to London. The commuter corridor is playing by its own rules.
Across 25 strategic areas we monitor, just 1,726 two-bedroom properties are available to rent - that’s only 69 per area serving populations of 50,000–100,000. While the rest of the country shows cooling demand, East London remains white-hot.
Mortgage rates have pushed homeownership beyond reach for thousands.
Corporate return-to-office mandates are reigniting commuter demand.
Amateur landlords exiting the market - 23% have sold at least one property since 2021, permanently removing stock.
The numbers tell the story: average time to let has dropped to 18 days, compared with 25 nationally. Over a third of properties are snapped up within a week. Critical shortage areas like Tilbury have just 2 properties available. The rental-to-sales ratio sits at 1:5, yet tenant demand far exceeds buyer interest.
Our analysis reveals a market consolidating around those who understand it. While amateur landlords leave due to tax changes, professional investors capture yields of 6.7 - 8.1% in areas where 42% of stock is already let agreed.
Location precision has never mattered more. Properties within five minutes of stations command £200 - 300 more per month than those 15 minutes away. On a typical £350,000 investment, that transport premium alone can swing yields by a full percentage point.
The numbers reveal a story the mainstream media isn’t covering. Across the 25 strategic areas we track, there are just 1,726 two-bedroom properties available to rent. That’s a mere 69 per area for populations of 50,000–100,000 people. While national rental markets are cooling, East London remains exceptionally strong.
Mortgage rates keep homeownership out of reach for thousands of potential buyers.
Return-to-office mandates are driving renewed commuter demand.
Amateur landlord exits - 23% of private landlords have sold at least one property since 2021, permanently reducing rental stock.
Average time to let: 18 days (vs 25 nationally)
Properties listed <7 days: 35.4%
Critical shortage areas (<10 listings): Tilbury (2), Thamesmead (8), Epping (9)
Rental-to-sales ratio:1:5
While amateur landlords exit, professional investors continue to secure yields of 6.7-8.1% in markets where 42% of stock is already Let Agreed. The market isn’t declining - it’s consolidating for those who know where to look.
Location premium matters. Properties within five minutes of stations command £200-300 more per month than those 15 minutes away. On a typical £350,000 investment, this transport premium alone can shift yields by a full percentage point.
