Property investment stats for Merthyr Tydfil, Wales

• Investors can benefit from strong rental yields of 6.2%, especially in the highest-yielding district where yields reach 6.0%.
• Capital growth has been robust, with values changing by 7.4% in the past year and 26.1% over three years, offering both short- and medium-term upside.
• Affordability is a real draw here, with a price-to-income ratio of 3.4 and asking prices for a three-bedroom house at £165,000, opening the door to a wider pool of buyers and renters.

• The area has a high social rented housing share, in the 89th percentile, which could limit private rental demand growth.
• The proportion of degree-educated residents and professionals is low (in the 19th and 11th percentiles), which might affect future demand from higher-income tenants or buyers.
• The unemployment rate sits in the 71st percentile, so there could be some economic headwinds affecting overall demand and stability.

Looking ahead, Merthyr Tydfil’s fundamentals suggest further resilience. With properties spending an average of 65 days on the market and annual sales at 302, liquidity is decent for a town of its size.

Rental demand looks steady, supported by a rent-to-income ratio of 19.4% and a strong families presence in the 78th percentile. While the population mix and social housing skew might temper blue-sky optimism, the combination of solid yields and capital growth potential keeps Merthyr Tydfil on my watchlist. Investors who value affordability and are prepared for some local economic challenges could find the area’s prospects appealing.