Property investment stats for Croydon, London

• Rental yields remain attractive, with an average of 8.2% and the top postcode district delivering 8.3%.
• The private rental sector is large (in the 86th percentile), supporting consistent tenant demand.
• A high proportion of families and young adults creates stable demand for both houses and flats, with current median asking rents of £2,250 for a 3-bedroom house and £1,782 for a 2-bedroom flat.

• Capital values have changed by -1.8% over the past year and by -0.2% annualised over three years, indicating a lack of price growth.
• Properties are taking a median of 66 days to sell, which may affect liquidity for those seeking quick exits.
• The unemployment rate is in the 87th percentile, which could pose risks to tenant stability and rental arrears.

Croydon’s investment case leans heavily on its rental market, with strong yields and a deep pool of renters. While price-to-income and rent-to-income ratios of 5.9 and 32.1% are high by national standards, these figures are not unusual for London and reflect the area’s ongoing appeal to both investors and tenants.

Capital growth prospects appear muted for now, given the changes of -1.8% over one year and -0.2% over three years. However, with ongoing demand from young professionals and families, rental demand is likely to remain resilient. Investors should expect returns to be driven primarily by income rather than price appreciation in the near term. Liquidity remains reasonable, with annual sales of 1,769 and a median achieved-minus-asking price gap of £5,000 (the typical achieved discount), but patience may be required when selling.