Property investment stats for South Norwood, South East London

• The area offers strong rental returns, with an average rental yield of 6.2% and even higher yields of 8.3% in the top postcode district.
• High demand for rental properties is supported by the large private rented sector and a steady flow of young professionals and families.
• The median achieved price matches the asking price (£0 (the typical achieved discount)), suggesting sellers and buyers are well-aligned and liquidity is decent, with properties spending 68 days on the market.

• Capital growth over the past year has changed by -2.7%, and the three-year annualised growth is a modest 1.2%, so investors should temper expectations for quick capital gains.
• The unemployment rate is in the 92nd percentile, which may affect some tenants’ ability to pay rent reliably.
• The area’s high reliance on the private rented sector could expose investors to regulatory or policy changes impacting the rental market.

Rental demand looks set to remain robust, given the area’s high proportion of families, young adults and professionals. The supply of homes for sale and rent is reasonably fluid, with 363 transactions a year and properties typically selling in 68 days.

Affordability pressures are unlikely to ease, but South Norwood’s rental yields and accessible pricing (with a three-bedroom house at £500,000 and a two-bedroom flat at £325,000) will continue to attract investors seeking income rather than quick capital growth. Over the next year, expect stability in rents and sale prices, with a steady market shaped by London’s enduring appeal and local demographics.