Property investment stats for Merton, South West London

• Rental yields are attractive for London, with an average of 5.1%, and the top-performing postcode district achieving 5.0%.
• The area’s high proportion of young professionals and degree-educated residents suggests ongoing demand for quality rental accommodation.
• Liquidity is supported by a steady sales volume of 784 and a relatively short average time on market of 64 days.

• The price-to-income ratio of 6.7 and rent-to-income ratio of 25.5% indicate affordability pressures that could limit future price growth.
• A high proportion of private renters may make the market more sensitive to changes in rental demand or regulation.
• Capital growth has been modest, with a 1-year change of 0.5% and annualised 3-year growth of 1.2%.

The outlook for Merton is one of steady, incremental growth rather than rapid gains. Investors can expect stability, with the area’s demographic profile and rental sector likely to underpin demand.

Asking prices for a typical 3-bedroom house are around £837,500, while the median rent for a similar property sits at £2,850, suggesting a reasonable balance between purchase and rental values. For flats, the median asking sale price is £475,000 and the median rent is £2,250.

Given the strong rental yields of 5.1% and a professional, mobile population, Merton should continue to appeal to investors seeking long-term security. However, affordability will remain a watchpoint, especially if wage growth fails to keep pace with housing costs.