property
Addiscombe: the suburb with the highest rental yield for investors
Addiscombe leads Croydon with average gross yields of 7.4 per cent, outpacing other neighbourhoods in the borough according to June 2026 data.
How we reported this
Addiscombe posted the highest rental yield among Croydon suburbs in the second quarter of 2026, hitting 7.4 per cent on average for two-bedroom flats and terraced houses. Local agents recorded this figure from 142 lettings completed between April and June.
The result arrives as buyers weigh options after months of fluctuating mortgage rates and renewed interest in outer London districts. Properties here deliver stronger cash flow than those closer to central Croydon or in neighbouring Sutton, where yields sit nearer 5.9 per cent.
Streets and sites drawing tenants
Landlords report steady demand along Addiscombe Road and Lower Addiscombe Road, where flats sit within a ten-minute walk of East Croydon station. The nearby Croydon Clocktower and its library draw young professionals who value the cultural programme run by Croydon Council. Further east, the Addiscombe Recreation Ground provides green space that families cite when renewing leases.
Two regeneration schemes also support occupancy. The council’s £50 million upgrade to the Fairfield Halls, completed in late 2025, has increased footfall, while the ongoing Whitgift Centre redevelopment continues to add retail units and 300 new homes by 2028.
Prices, rents and next steps for buyers
Rightmove and local branch data show average sale prices in Addiscombe at £335,000 for two-bedroom properties as of 1 July 2026. Typical monthly rents reached £2,070, producing the 7.4 per cent yield after allowing for 8 per cent void and management costs. Comparable figures from March 2025 stood at 6.8 per cent, confirming the recent lift.
Investors planning entry should contact Croydon Council’s planning portal for current Section 106 affordable-housing requirements on new builds. They can also review listings through agents based on George Street or attend the monthly property auction held at the Fairfield Halls. Checking recent comparable sales on the Land Registry website remains the quickest route to confirming current yields before making an offer.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.