Property type can influence rental yield just as much as location. While larger properties generally command higher monthly rents, they also tend to have higher purchase prices and, in some cases, greater ongoing ownership costs. Whether comparing existing homes or off-plan property in London, investors should consider rental income alongside acquisition costs, management requirements and tenant demand when assessing different types of buy-to-let property.
According to the Greater London Authority (GLA) London Rents Map, rental values increase consistently with property size across most London boroughs, although the relationship between rent and purchase price differs considerably depending on location.
One-Bed Properties
One-bedroom homes appeal to single professionals and couples, particularly near major employment centres. According to the GLA, average monthly rents in August 2026 ranged from £1,217 in Havering to £2,640 in Kensington and Chelsea. These differences illustrate why investors should assess purchase prices alongside rental income when comparing potential gross yields.
Two-Bed Properties
Two-bedroom homes attract couples, professional sharers and smaller families. According to the GLA London Rents Map, average monthly rents reached £1,526 in Bexley, compared with £3,428 in Kensington and Chelsea. Although larger properties can command higher rents, acquisition costs and local tenant demand remain important considerations when assessing rental yields.
