Property investment stats for Kensington, West London

• The area boasts a strong rental market, with the private rented sector in the 99th percentile and average yields of 4.2%; the top postcode district manages a yield of 4.6%.
• High demand from professionals and international tenants keeps rents for flats and houses robust, with a current median asking rent of £5,000 for a two-bedroom flat and £9,100 for a three-bedroom house.
• The population is highly educated and professional, which supports both rental stability and property values over the long run.

• Capital growth has changed by -5.0% over one year and -3.8% over three years, with annualised three-year growth at -1.3%; this signals that short-term price appreciation is not guaranteed.
• The area’s high price-to-income and rent-to-income ratios mean affordability is stretched even by London standards, which could limit future growth or liquidity.
• Achieved prices are typically below asking by £40,000 (the typical achieved discount), so sellers may need to temper their expectations.

Over the next twelve months, I expect Kensington to remain a stable if unspectacular performer. The sheer weight of demand from affluent renters and buyers, especially professionals and international tenants, will likely keep the rental market buoyant. While capital values have changed by -5.0% in the past year, the area's long-term appeal and liquidity should help prevent any sharp corrections.

Affordability will continue to be a barrier for many, but for investors focused on prime London rental stock, the fundamentals remain attractive. The market may not offer quick wins, but it has a track record of resilience and steady demand. All told, Kensington is likely to reward patience and a focus on income rather than rapid capital growth.