The Rental Yield Hotspots of Islington in 2025

Introduction

Islington has long been one of London’s most sought-after boroughs for property investors. Its mix of young professionals, students, and affluent renters keeps demand high, ensuring strong rental yields. But not all areas are created equal — some streets and neighbourhoods offer better returns than others. Here’s a 2025 guide to the rental yield hotspots of Islington for landlords and buy-to-let investors.

1. Finsbury Park: High Yields & Strong Demand

• Average yield: ~5%

• Why it works:

  • Popular with students, young professionals, and sharers.

  • A mix of Victorian terraces, HMOs, and affordable flats.

  • Excellent transport links via Finsbury Park station (Victoria & Piccadilly Lines).

• Tip: HMOs and multi-bedroom flats provide the highest returns.

2. Holloway: Affordable Entry with Solid Returns

• Average yield: ~4.8%

• Why it works:

  • More affordable than central Islington but still close to Angel and King’s Cross.

  • Strong rental demand from young professionals and small families.

  • New developments and flat conversions increase rental opportunities.

• Tip: Consider one-bed flats or split-level apartments for maximum yield.

3. Caledonian Road & King’s Cross Fringe: Regeneration Pays Off

• Average yield: ~4.7%

• Why it works:

  • Ongoing King’s Cross regeneration boosts demand for modern flats.

  • Attracts international professionals and tech workers.

  • High rental values combined with still-reasonable property prices make it lucrative.

• Tip: Look for off-market or newly refurbished flats near transport hubs.

4. Highbury: Steady Returns with Premium Appeal

• Average yield: ~4.2%

• Why it works:

  • Leafy streets and larger flats attract families and long-term tenants.

  • Less volatile market — rental income may be slightly lower, but tenant reliability is high.

• Tip: Focus on period conversions that can command higher rents.

5. Angel & Upper Street: Lifestyle Premium

• Average yield: ~4%

• Why it works:

  • Trendy bars, restaurants, and shops keep rental demand high.

  • Popular with professionals seeking convenience and lifestyle perks.

• Tip: Smaller flats in this area are easier to rent quickly, even if yields are slightly lower.

Key Factors for Maximising Rental Yield in Islington

1. Property type matters: HMOs and multi-bedroom flats usually outperform one-bed flats in yields.

2. Location, location, location: Streets near transport hubs, parks, or regeneration areas attract more tenants.

3. Modernisation adds value: Renovated kitchens, bathrooms, and energy-efficient upgrades can justify higher rent.

4. Understand tenant demographics: Students, young professionals, and families each have different requirements.

   
   

Final Thoughts

Islington remains a strong market for rental income and long-term property investment in 2025. While prime areas like Angel and Highbury provide stability and prestige, neighbourhoods such as Finsbury Park, Holloway, and the King’s Cross fringe offer higher yields and excellent growth potential.

For landlords and investors, knowing the hotspots and tailoring your property choice to tenant demand is key to maximising returns.