Data from leading London estate agent Portico shows the current highest rental yield postcodes in London can now be found in the east London borough of Havering.

The agents have used their innovative Interactive Yield Map to drill down into each London borough on a street level to find the highest potential yields in the capital.

Their data shows that London’s highest yield of 8.3% was found in the borough of Havering, in the Romford postcode area around Whybridge Junior School. The average monthly rental price for a two bedroom flat in the area is just £1,156 - £600 less than London’s average monthly rental price of £1,756.

The outer London boroughs offered the highest yields, with areas within Barking and Dagenham, Bexley, Redbridge and Bromley all achieving yields of 6% or over.

The suburban area of Chadwell Heath in Barking and Dagenham - where Crossrail services will launch in 2019 - offers landlords an impressive 7.6% yield. Here, landlords can expect an average monthly rent price of £1,278.

In inner London, Greenwich is the borough with the strongest rental returns and the most affordable monthly rent. A landlord can expect a 6% yield around north Greenwich station, on roads Pelton Road, Bellot Street, Blackwall Lane, Armitage Road and Millennium Way, and the average monthly rental price in the area is £1,477.

Yields range from around 2 - 4% in prime central London, with the highest being found around the towering World's End Estate in Kensington and Chelsea (3.8%), or the northern end of Finchley Road in the borough of Westminster (4.8%).

Robert Nichols, Managing Director, Portico, said:

“The rental market has remained strong post Brexit, but landlords still need to be smart about where they are investing as a very small difference in yield can determine whether they make a profit or a loss.

If you’re thinking of buying-to-let, transport links are key. London’s commuting tenants want to be within close proximity of a Tube, so look for properties near new developments such as Crossrail and Crossrail 2.

Havering, Barking and Dagenham and Bexley - which will soon have stations on the eastern edge of the Elizabeth line - are clearly key investment hotspots where landlords are achieving extremely impressive yields.”