Property investment stats for Forest Gate, East London

• Rental yields are appealing, with an average of 5.7% and the top postcode district achieving 5.9%, which is strong for London.
• The area’s high proportion of families and private renters, both in the 90th percentile or above, creates steady demand for both houses and flats.
• Liquidity is reasonable, with homes typically taking 39 days to sell and a median achieved minus asking price of -£5,750 (the typical achieved discount), suggesting room for negotiation.

• Capital growth over one year has changed by -0.9%, so short-term appreciation is limited.
• The rent-to-income ratio is 36.8%, which could eventually put pressure on affordability for tenants.
• The unemployment rate is in the 97th percentile, which is high compared to most areas in Britain and may affect tenant stability.

Over the next twelve months, Forest Gate is likely to remain attractive for investors focused on rental income rather than rapid capital growth. The area’s demographic profile — young families, a large student population in the 90th percentile, and high private rental demand — suggests that rental demand will stay strong.

However, affordability for both buyers and renters is stretched, with a price-to-income ratio of 8.5 and rent-to-income at 36.8%. Short-term capital growth prospects are muted, with a one-year change of -0.9%, but the three-year figure of 6.6% and annualised growth of 2.2% point to steady, if unspectacular, long-term potential. Investors should expect stable rental income, but be mindful of the local employment picture and affordability constraints.