The latest property price and rental news
House prices update:
Based on our recent market updates, As at November, average annual house price growth stood at just 0.9%, the lowest year-on-year increase since April 2012. This almost flat growth is good news for those looking to invest as it typically means bargains are available, however, this ‘average’ figure does mask some consistently good growth in some regions over the quarter, notably:
|Annual change||Average price (Oct)|
Local authority areas that performed consistently well across the three months included: Derby, Bristol, Bournemouth, Merseyside and Torfaen, with prices in the latter up a whopping 15.6% year on year.
The South East continued to suffer through the second half of 2018 and, as always, there were huge differences between the various London boroughs. In October, annual growth ranged from +7.6% in Lambeth to -24.8% in the City of Westminster, showing that local market knowledge is key when running a portfolio or investing for the first time.
The rental market update:
The rental market has been steady, with the South West region having seen the biggest increase in rents, which were up by 4.3% in the year to November and now stand at an average of £701 per month. Across England and Wales as a whole, the average seasonally adjusted monthly rent figure for the last quarter was £862.
London remains the most expensive place to rent, with properties in Zone 2 averaging £1,811.91 while yields are still highest in the North, where some areas are seeing returns of 7.5%. Tenant finances are continuing to steadily improve, with just over 8% of tenancies in arrears in November.