Property investment stats for West Hampstead, North West London

• The private rental market is robust, with demand supported by a population in the 93rd and 96th percentile for those aged 20-40, and a high proportion of single occupier and couple households.
• Rental yields are competitive for London, with an average of 4.8%, and certain districts reaching up to 5.3%.
• Liquidity is decent, with annual sales at 469 and homes spending an average of 80 days on the market, making it easier to enter or exit positions than in slower-moving markets.

• Affordability is a challenge, with a price-to-income ratio of 8.6 and a rent-to-income ratio of 32.3%, which may limit future price growth or rental increases.
• Capital growth has been modest, with a 1-year growth of 2.1% and an annualised 3-year growth of 0.7%.
• The area is dominated by renters rather than owner-occupiers, which can mean higher tenant turnover and potentially more management required.

Looking ahead, I expect West Hampstead to remain attractive to young professionals and renters, given the high proportion of private rented housing and the area's appeal to those in the 20-40 age brackets. Rental yields, at an average of 4.8%, should continue to support investor returns, especially in the top-yielding districts where yields reach 5.3%.

Capital growth is likely to remain steady rather than spectacular, based on the recent 1-year growth of 2.1% and annualised 3-year growth of 0.7%. Liquidity appears reasonable, with homes spending an average of 80 days on the market and a median achieved minus asking price of £10,000 (the typical achieved discount). While affordability pressures are real, the strong tenant base and ongoing demand for quality rental property in London should underpin the market over the next year.