Property investment stats for New Cross, South East London

• The area offers strong rental yields, with an average of 6.1%, which is especially appealing for income-focused investors.
• The dominance of young renters and students (both in the 95th percentile or higher) means reliable demand for smaller properties and flats.
• Liquidity is reasonable, with annual sales at 233 and homes spending an average of 86 days on the market.

• Capital growth has been sluggish, with a 3-year annualised change of -0.4%, so investors should not expect rapid price appreciation.
• The high rent-to-income ratio of 36.3% may limit further rental growth, as affordability is already stretched for many tenants.
• The unemployment rate is in the 98th percentile, which could pose risks to tenant stability and rent collection.

Looking ahead, I expect New Cross to remain a hotspot for renters, especially students and young professionals. The area’s high rental yields of 6.1% will likely continue to attract investors seeking steady income, even if capital growth stays modest — recent 1-year growth was 1.1%, and the 3-year annualised rate is -0.4%.

Affordability for buyers and renters is stretched, with a price-to-income ratio of 7.4 and a rent-to-income ratio of 36.3%, but this is par for the course in much of London. The supply pipeline seems balanced, with annual sales at 233 and average days on market at 86 days, suggesting reasonable liquidity.

All in, New Cross looks set to stay a solid bet for those who want rental income and can ride out slower capital growth. The fundamentals are stable, and the area’s appeal to young, mobile tenants isn’t likely to fade anytime soon.