Property investment stats for Herne Hill, South East London

• The average rental yield of 5.2% is attractive for London, and even higher yields are available in the top-performing postcode district (5.5%).
• Demand is underpinned by a large population of degree-educated professionals (in the 97th percentile) and a high proportion of private renters (in the 76th percentile).
• The annual sales figure of 271 and a typical days on market of 61 days suggest a liquid market that allows for relatively easy entry and exit.

• Affordability remains a challenge, with a price-to-income ratio of 8.1 and a rent-to-income ratio of 28.7%, both high even by London standards.
• The median of achieved minus asking price is £5,000 (the typical achieved discount), which may indicate room for negotiation but also signals that buyers are not always meeting sellers' expectations.
• A high proportion of social rented housing (in the 92nd percentile) could signal potential volatility in neighbourhood mix or policy changes.

The outlook for Herne Hill over the next year is steady, with capital growth over one year at 4.1% and a three-year annualised figure of 1.6%. Rental demand is likely to remain robust, supported by the area's popularity among professionals and students. The current median asking sale price for a three-bedroom house is £1,100,000, and a two-bedroom flat is £525,000, with corresponding rents at £3,375 and £2,300.

Liquidity should stay healthy given the annual sales volume of 271 and relatively quick sales times, but affordability will continue to be a barrier for many buyers. Investors should expect moderate but reliable returns rather than rapid appreciation. Stability, not short-term growth, is the key attraction here.