Jasmine Birtles
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Why Buying a Property in East London is Still a Great Investment in 2026
Moneymagpie Team
10th Sep 2026
If you’ve been following the property news this year, you could be forgiven for feeling cautious. London has recorded month after month of annual price falls, mortgage rates remain higher than many buyers hoped, and the rules for landlords have changed significantly. So is buying in East London still a smart move? Expert estate agents based in East London, Halls Property Group know so.
- The Headline Figures Don’t Tell the Whole Story
- Affordability You Won’t Find Elsewhere in the Capital
- Strong Rental Demand Keeps Income Steady
- Transport Links That Put the Whole City Within Reach
- Regeneration Is Creating Jobs and Destinations
- A Buyer’s Market Means More Room to Negotiate
- What Landlords Need to Know in 2026
- Why Buy With Halls Property Group?
The Headline Figures Don’t Tell the Whole Story
According to the latest Office for National Statistics (ONS) data, the average London home cost £554,000 in June 2026, around 2.5% lower than a year earlier. But that average hides a big divide. Most of the weakness has been in Inner London, where prices fell by almost 6% in the year to May, while Outer London was virtually flat over the same period.
Some East London boroughs have gone against the trend entirely. In Barking and Dagenham, the average house price rose by 4.3% over the year to £371,000. That’s more than £180,000 below the London average – and still climbing while prices elsewhere in the capital slipped.
Affordability You Won’t Find Elsewhere in the Capital
For many buyers, the biggest attraction of East London is simple: it remains one of the most affordable routes onto the London property ladder. ONS figures put the average flat or maisonette in Barking and Dagenham at around £250,000, a price point that is increasingly rare for somewhere with a direct Tube connection into central London.
Lower entry prices mean smaller deposits, more manageable mortgage repayments and, for investors, a lower upfront outlay per property. Areas such as Ilford, Romford and Canning Town offer a similar balance of value and connectivity, with a wide mix of period houses, modern apartments and new-build developments.
Strong Rental Demand Keeps Income Steady
Demand from tenants continues to underpin East London’s appeal for landlords. The average private rent in London reached £2,317 a month in July 2026, and some East London boroughs are growing faster than the capital as a whole. In Newham, rents rose by 4.2% to an average of £1,928 in the year to June – almost double the London-wide rate of growth at the time.
Using borough averages as a rough guide, a typical property in Barking and Dagenham produces a gross yield of around 5.5%, compared with around 5% across London as a whole. Your actual return will depend on the property, its condition and your running costs, but the combination of lower purchase prices and resilient rents is exactly what makes the area so attractive to investors.
Transport Links That Put the Whole City Within Reach
East London’s transport network has been transformed over the past few years. The Elizabeth line runs through Stratford, Forest Gate, Ilford, Goodmayes, Chadwell Heath and Romford, putting the West End, the City and Canary Wharf within a short, direct journey. Add the District and Central lines, the DLR, c2c services from Barking and the London Overground, and it’s easy to see why so many commuters are choosing to head east.
Good transport links don’t just make daily life easier. They widen the pool of potential tenants and future buyers, which helps protect your property’s value over the long term.
Regeneration Is Creating Jobs and Destinations
Significant investment continues to reshape East London. In April 2026, the V&A East Museum opened at East Bank in the Queen Elizabeth Olympic Park, joining the BBC, Sadler’s Wells East, the London College of Fashion and UCL East in one of the capital’s newest cultural quarters.
Further east, Eastbrook Studios in Dagenham – London’s largest film and TV studio campus, with 12 soundstages across a 21.5-acre site – is bringing major productions and creative jobs to the borough. Alongside ongoing regeneration in the Royal Docks and at Barking Riverside, these projects are bringing new employment, amenities and footfall to neighbourhoods that were once overlooked.
A Buyer’s Market Means More Room to Negotiate
A cooler market isn’t necessarily bad news if you’re buying. With prices softer in parts of London and homes taking longer to sell, buyers have more choice and more room to negotiate than they did a few years ago. In areas such as Canary Wharf and the wider Tower Hamlets borough, where prices have dipped, long-term buyers may have the chance to secure a property below recent peaks.
It’s important to go in with your eyes open, though. The Bank of England held the base rate at 3.75% in July, and according to Moneyfacts, the average two-year fixed mortgage rate was 5.52% at the start of September 2026, with five-year fixes averaging 5.64%. Speak to a mortgage adviser, stress-test your budget and use tools such as our mortgage calculator and stamp duty calculator before making an offer.
What Landlords Need to Know in 2026
The Renters’ Rights Act came into force on 1 May 2026, abolishing Section 21 “no-fault” evictions and moving tenancies onto rolling periodic agreements. Landlords now need valid legal grounds to regain possession and must keep on top of a growing list of compliance requirements.
That doesn’t mean buy-to-let no longer works – but it does mean thorough tenant referencing, accurate paperwork and professional management matter more than ever.
Why Buy With Halls Property Group?
As a family-run estate and letting agent, we combine more than 30 years of local experience with some of the lowest fees in East London. Whether you’re a first-time buyer looking for your first home in Dagenham, a family moving up the ladder in Ilford, or an investor building a portfolio across the Docklands, our friendly team will guide you through every step – from finding the right property to securing reliable tenants and managing it long after you’ve collected the keys.
East London has always rewarded buyers who take a long-term view, and in 2026 the fundamentals – affordability, rental demand, transport and regeneration – remain firmly in place.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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