Is buy-to-let still worth it in east London (2026)?

Between the new rental laws and seemingly ever-rising costs of renting out a property… is being a landlord worth it in East London? The hurdles can’t be overlooked, but there are still opportunities for East London landlords.

It’s possible to buy a rental property for an affordable selling price in Manor Park or Wanstead, and great transport connections in Forest Gate, Ilford and Stratford are further boosting the areas’ appeal to tenants.

Only you can decide if buy-to-let is still worth it anymore, but we’ve prepared this article to help you consider every angle.

Is buy-to-let still worth it in 2026?

Buying and renting out a buy-to-let can attract higher tax payments, and landlords are under increasing pressure surrounding their property’s energy efficiency and all-round standards. Awaab’s Law and the Decent Homes Standard mean landlords will need to be more responsive to repairs by 2030.

However, the East London property market can still be affordable for landlords. Rightmove also reports monthly rents have increased by an average 31% around Elizabeth Line stations since 2022, benefitting Ilford and Manor Park rental properties.

Want to find out more? Learn about the Newham landlord licensing requirements and explore what periodic tenancies mean for your buy-to-let properties.

Challenges & opportunities for landlords

Challenges for landlords

• New limits on rent increases to once per year via Section 13 notice only
• Longer eviction notice periods to repossess or sell the property
• New responsibilities and costs under the Renters’ Rights Bill
• Buy-to-let properties attract a 5% stamp duty surcharge
• Landlords can’t claim for mortgage payments

Opportunities for landlords

• Demand for rental property still outstrips supply across East London, meaning you have a large tenant pool to choose from
• Rent growth has slowed, but it’s still rising, and rental yields are sustainable for many
• Interest rates on buy-to-let mortgages have come down from their peak
• Capital growth continues for BTL properties over the long-term
• Property is a stable asset compared to many comparable investments, with an excellent track record
• 20% tax credits are allowed against mortgage interest

How can landlords overcome challenges in the market?

Planning carefully, understanding the financial picture, and keeping up with new legislation can all help.

Look for long-term savings too – for example, consider how buy-to-let investment will impact your tax bill. If you’re paying tax as a higher rate taxpayer, consult a tax advisor because registering as a limited company might make your rental property portfolio more tax efficient.

It’s also more important than ever to have a letting agent who understands your business and property portfolio. They can help with the (somewhat overwhelming) sea of compliance rules coming into force under the Renters’ Rights Act. This isn’t just a time saving exercise or ‘nice to have’ feature either, professional property management can protect you from massive new fines which local councils are able to charge for non-compliance (starting at £7000, rising as high as £40K).

What rental yields can landlords expect in East London?

East London boasted the highest rental yields in London, according to Zoopla statistics, with an average gross rental yield of 6.22% in the London Borough of Barking and Dagenham and 6% in Newham in 2025. Yields of 5.5-6% are possible in areas like Hackney, Stratford and East Ham – all above the London average gross rental yield of 5.1%.

Want to know more? Find out how to check a tenant’s right to rent in East London and understand the tenancy deposit scheme dispute process to protect your investment.

How should landlords handle the Renters’ Rights Act changes?

The best advice for buy-to-let landlords in 2026 is to ensure you’re compliant with the Renters’ Rights Act. The measures are far-reaching, from discrimination and a ban on bidding wars, to pets in lets, so take the time to understand what’s changing.

Budget for any costs and plan for the new timelines – for example, faster action on damp on mould, and longer eviction timelines. If you have concerns, consider our landlord services – as knowledgeable local letting agents, we can help you stay up-to-date.

What are the alternatives to buy-to-let investment?

Not sure if buy-to-let is the best way for you to generate a good return on investment? Some alternatives to buy-to-let investment include:

• Shares. The long-term returns can be higher but shares are considered a high-risk investment.
• REITs. Invest in property through a company.
• Gilts. Government bonds are often considered tax-efficient and relatively stable, though returns can be lower.

Is being a landlord worth it? Common questions answered.

There are certainly pros and cons to consider as you decide it being a landlord is worth it. Always seek professional advice before moving forwards.

If you’re a new landlord in Camden, East Ham, Beckton, Plaistow or the Thurrock area, we can advise you on potential buy-to-let properties and renting them out. Contact Lint Group today.

Looking for a hassle-free letting solution? Explore our guaranteed rent in Stratford, rent guarantee service in Newham & guaranteed rent in Grays.