Property investment stats for Southampton, South East

• Rental yields are robust, with the city average at 7.0% and the top-performing district achieving 7.3%, making income-focused strategies attractive.
• The private rented sector is in the 85th percentile nationally, supported by a high student population and a large proportion of young adults, creating consistent tenant demand.
• Properties sell with a median discount of £4,000 (the typical achieved discount), giving buyers some room to negotiate on price.

• Recent capital growth has changed by -1.3% over the past year, which may concern those looking for short-term appreciation.
• The city has a relatively high unemployment rate (in the 76th percentile), which could affect tenant stability and long-term demand.
• A large proportion of the population lives in social or private rented housing, which can sometimes lead to higher tenant turnover and management demands.

Looking ahead, I expect Southampton’s strong rental yields and high demand from students and young professionals to keep the market appealing for buy-to-let investors. While short-term capital growth has changed by -1.3%, the three-year annualised figure of 2.8% shows a steadier long-term trend.

Affordability remains a key strength, with a price-to-income ratio of 4.6 and a rent-to-income ratio of 22.1%, both of which support continued demand from renters and buyers. The city’s market liquidity, demonstrated by an average of 54 days on market and 2,386 annual sales, should help investors who want flexibility to sell.

Overall, I see Southampton as a market where income-focused investors can thrive, but anyone banking on rapid price rises should temper expectations and focus on the fundamentals.