Property investment stats for Paddington, West London

• Rental yields are unusually strong for West London, with an average of 5.4% and the top postcode district yielding 5.2%, making buy-to-let attractive for investors seeking income.
• The high population of young professionals and students (both in the 90th percentile or above) means a deep pool of tenants, especially for smaller flats.
• The area’s liquidity, with 296 transactions a year and properties typically spending 88 days on the market, gives investors flexibility if they want to sell.

• Capital values have changed by -3.0% over the past year and -18.1% over three years, so investors should be cautious about relying on short-term price growth.
• Affordability remains a challenge, with a price-to-income ratio of 11.4 and a rent-to-income ratio of 56.2%, potentially limiting the pool of long-term tenants or owner-occupiers.
• The gap between asking and achieved prices, with a median difference of £25,000 (the typical achieved discount), suggests buyers may be driving hard bargains or sellers are optimistic.

Looking forward, I expect Paddington’s rental market to stay robust, thanks to high demand from young professionals and students. The area’s private rented housing is in the 99th percentile, and with owner-occupiers scarce, this dynamic is unlikely to shift dramatically. Investors focused on income rather than capital appreciation will likely find the rental yields of 5.4% appealing, especially given the fluidity of the market.

However, the recent changes in capital values — -3.0% over one year and -18.1% over three — should temper any expectations of quick capital gains. Affordability pressures, reflected in both sale and rental ratios, mean that turnover is likely to remain high, but with a tenant base that’s transient rather than settled. For those with a long-term perspective and a focus on stable rental returns, Paddington still holds plenty of promise.