Property investment stats for Homerton, East London

• Rental yields are strong in the top-performing postcode district, coming in at 5.9%, which is attractive for buy-to-let investors.
• The area’s large student and young professional population (both in the 90th percentile or above) supports consistent rental demand.
• The steady capital growth over the past year (3.2%) suggests there’s still appetite for homes here, despite the longer-term numbers.

• Over the past three years, capital values have changed by -2.3%, with an annualised growth rate of -0.8%, so investors should be wary of relying on price appreciation alone.
• Affordability is a concern, with both the price-to-income and rent-to-income ratios (8.5, 44.0%) sitting at levels that could limit future price growth.
• The very high proportion of social rented housing (in the 99th percentile) may affect the mix of properties available to private investors.

Rental demand in Homerton should remain robust, given the area’s appeal to students, young professionals and families alike. With private renting so dominant, landlords are likely to find a steady stream of prospective tenants, and the strong rental yields of 5.9% back that up.

However, price growth could remain subdued, as the longer-term capital growth trends (-2.3%, -0.8%) have not kept pace with the most recent year. Affordability pressures are unlikely to ease, but the area’s resilience and underlying demand mean investors can expect stability rather than fireworks. For those seeking income over short-term capital gains, Homerton’s market still offers a compelling case.