Property investment stats for The City, Central London

• Rental yields are robust, with an average of 5.3% and the top-performing postcode district achieving 5.7%, appealing to investors seeking income in a stable market.
• The area’s huge student and young professional population (in the 97th and 96th percentiles) ensures persistent rental demand, particularly for well-located flats and smaller units.
• Liquidity is strong, with properties changing hands relatively quickly and 774 transactions a year, so it’s easier to enter or exit the market compared to slower-moving areas.

• Short-term capital growth has changed by -9.3% over the past year, so investors should be cautious about relying on price appreciation in the immediate future.
• High asking prices (for example, a median of £1,000,000 for a two-bedroom flat) mean affordability is a challenge for both buyers and tenants, which could limit the pool of potential occupiers.
• The market is dominated by single occupiers and renters, with families almost absent (in the 1st percentile), so there’s little demand for larger homes or traditional family lets.

The City’s fundamentals remain strong for rental investors, especially those focused on smaller, high-quality units. With robust rental yields of 5.3% and a persistent inflow of students and young professionals, rental demand is unlikely to fade anytime soon. However, the capital growth outlook is less certain; while three-year growth has been positive at 11.2%, the most recent year saw prices change by -9.3%.

Given the area’s premium pricing and stretched affordability, investors should expect stability and liquidity rather than runaway growth. For those seeking steady income in a core London location with a dynamic, youthful tenant base, The City still has plenty to offer — just don’t expect bargains or rapid price rises in the next 12 months.