Property investment stats for Hampstead, North West London

• Hampstead’s rental market is robust, with a private rented housing percentile in the 97th percentile for Britain, suggesting strong ongoing demand from affluent tenants.
• The area’s professional and degree-educated population is in the 99th percentile, supporting premium rents and relatively low vacancy risk.
• The top postcode district achieves rental yields of 4.8%, which is attractive by London standards.

• Affordability is a significant barrier, with a price-to-income ratio of 10.4 and a rent-to-income ratio of 39.3%, limiting the pool of potential buyers and renters.
• Hampstead’s owner-occupation rate is in the 12th percentile, which may impact long-term stability for those seeking to exit the rental market.
• Capital growth has been muted, with a 1-year growth of 2.8% and annualised growth over three years of just 0.1%.

The outlook for Hampstead remains steady rather than spectacular. With annual sales at 665 and properties spending an average of 70 days on the market, liquidity is reasonable but not brisk. Rental demand is likely to remain high, underpinned by a large professional tenant base and the area’s enduring appeal.

However, high asking prices – such as £1,712,500 for a 3-bedroom house and £850,000 for a 2-bedroom flat – will keep affordability stretched. Investors should expect modest capital growth, as the area’s 3-year annualised growth sits at 0.1%, but ongoing rental income should remain a draw. Hampstead’s long-term stability and unique demographic mix continue to set it apart in the London market.