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Property investment stats for South Hampstead, North West London

A complete guide to property investment in South Hampstead.

Last updated: 18 September 2025

Investment summary

South Hampstead is a sought-after pocket of North West London with a reputation for stability and long-term appeal. The area is dominated by private rented housing, sitting in the 98th percentile compared to Britain, and has a notably high proportion of degree-educated residents and professionals. With a price-to-income ratio of 8.4, affordability is stretched, but that's typical for this part of the capital. The median price per square foot stands at £950 per sq ft, and a 3-bedroom house currently commands a median asking price of £875,000, while a 2-bedroom flat is listed at £725,000.

Image of South Hampstead, North West London

Key investment stats for South Hampstead

Median price per sq ft

£950 / sq ft

Average rental yield

4.5%

Capital growth (1y)

0.3%

Sales in past year

138

* Property stats calculated for last full calendar year (2024).

Live property stats in South Hampstead

Live prices in South Hampstead, North West London

* Extreme prices clipped for legibility

Properties for sale

Median price

£699,975

25% of properties below...

£525,000

75% of properties below...

£1,022,500

Most expensive property

£3,250,000

Live listings

132

Median days on market

75

Should you invest in South Hampstead?

Opportunities

  • Strong rental demand is underpinned by a high private rented housing percentile (98th) and a large population of professionals and degree-holders.
  • The area’s rental yields are competitive for London, with an average of 4.5% and the top postcode district achieving 4.6%.
  • High liquidity is evident with annual sales at 138 and typical days on market at 75 days, suggesting properties do not linger unsold for long.

Risks

  • Affordability remains a challenge, with a price-to-income ratio of 8.4 and a rent-to-income ratio of 32.2%, both high by national standards.
  • Capital growth has been modest, with just 0.3% over one year and 0.3% annualised over three years.
  • The area’s low owner-occupation (6th percentile) may limit appeal to some buyers seeking long-term stability or a family environment.

Outlook

Looking ahead, South Hampstead is likely to remain attractive to renters, especially young professionals and students, given the area’s high population in the 20-40 age brackets and the prevalence of single and couple households. Rental yields are expected to hold steady, given the current average of 4.5% and robust demand from a highly educated, professional tenant base.

While capital growth has been subdued — just 0.3% in the past year — the area’s stability and strong rental market will continue to underpin its investment appeal. Investors should not expect rapid price rises, but the liquidity and reliable tenant pool provide reassurance. Over the next year, South Hampstead will likely see steady, if unspectacular, performance, making it a solid if not flashy choice for those seeking long-term security rather than short-term gains.

Live properties in South Hampstead

Investment properties in South Hampstead, North West London

3 bedroom house for sale
17% below median price

£750,000 - Guide Price

3 bedroom house for sale

Bransdale Close, London, NW6

Properties needing refurbishment in South Hampstead, North West London
Needs Refurb
1 bedroom flat for sale
On market for 170 days

£439,950

1 bedroom flat for sale

Fairhazel Gardens, South Hampstead ...

Slow to sell properties in South Hampstead, North West London
Slow to Sell
1 bedroom flat for sale
Reduced by 11%

£245,000

1 bedroom flat for sale

West End Lane, West Hampstead

Big price drop properties in South Hampstead, North West London
Big Price Drop
4 bedroom house for sale
1,830 sq ft

£2,850,000

4 bedroom house for sale

Marston Close, South Hampstead, NW6

Properties with planning granted in South Hampstead, North West London
Planning Granted
1 bedroom flat for sale
52% below median price

£600,000

1 bedroom flat for sale

Kings Gardens, South Hampstead, Lon...

Low price-per-sq-ft properties in South Hampstead, North West London
Low Price per Sq Ft

Achieved vs asking prices

Key takeaway: Balanced market

Buyers have some negotiation leverage, but not much.

Headline stats

• Median discount: £10,000

• 1 in 4 properties sell at > £23,750 below asking

• 1 in 10 properties sell at > £131,250 below asking

In percentage terms:

• Median discount of 1.3%

• 25% of properties discounted by > 3.0%

• 10% of properties discounted by > 5.0%

Best places to invest in South Hampstead

Top postcodes for rental yield and (annualised) capital growth

Rank
Postcode
Yield
Capital growth
Median £/sq ft
1NW64.6%0.5%£887 / sq ft
2NW34.3%0.4%£1,072 / sq ft

Data sources

GeoGlider calculates property investment stats by blending official and proprietary datasets. Here's a quick overview of key sources and how we use them:

  • HM Land Registry: Property transaction and sold-price records for England & Wales used to calculate historical capital growth, price levels and comparables.

  • Office for National Statistics (ONS): Demographic and economic indicators for the UK, including Census 2021, supporting area profiling and market context.

  • Ordnance Survey: Authoritative UK geospatial data powering accurate boundaries, roads and terrain for mapping and spatial analysis.

  • GeoProp: Our proprietary AI pipeline that processes millions of property listings to extract rich features and live market signals.

  • Department for Levelling Up, Housing & Communities: Energy Performance Certificate (EPC) scores and property floor areas.

  • HM Revenue & Customs (HMRC): Household income and employment data to understand local affordability and economic conditions.

Data is updated continuously, matched across sources and rigorously validated.