Latest property price and rental news
House Prices: England & Wales
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 investing for the first time or adding to a portfolio as it potentially allows for ‘bargains’ to be secured. Although local market knowledge from agents is key as this headline figure masks some consistently good growth in some regions including:
|Annual Change||Average Price in October|
Local authority areas which performed well across the last three months included: Derby, Bristol, Bournemouth, and Merseyside with Torfaen rising by a healthy 15.6% year on year.
The South East continued to slow ‘on average’ through the second half of 2018 and London is reported as falling ‘on average’ however, there were huge differences between the various boroughs with annual growth ranging from +7.6% in Lambeth to falls of -24.8% in the City of Westminster, with the latter hit by Brexit uncertainty and higher taxes.
Rents: England and Wales
The rental market is ‘ on average’ steady, while some areas outperform others such as the South West region with rents up by 4.3% in the year to November. Across England and Wales as a whole, the average seasonally adjusted monthly rent figure for the last quarter was £862.
Rents are highest in London, with properties in Zone 2 averaging £1,811.91 while the best yields remain in the North, where some areas are seeing returns of 7.5%.
The good news for landlords is that rental affordability remains positive with only 8% of tenancies in arrears in November.
House Prices and Rents: Scotland
In the third quarter of last year, the overall picture for the Scottish market was one of low stock, low transaction levels and a relatively inactive market. Edinburgh and Glasgow together accounted for around a quarter of all transactions, with most activity at the higher end of the market, particularly in the capital, where properties have been selling quickly.
That’s resulted in relatively high annual price growth figures, which stood at 5.1% for Scotland as a whole in September, with Edinburgh and Glasgow both up 9.6% year on year. Good news for existing investor property and portfolio values.
Overall, more than 80% of local authority areas saw annual rises each month in the quarter. At the lower end of the market, Inverclyde and West Dumbartonshire have been doing particularly well, while Renfrewshire and East Dumbartonshire are experiencing consistently good growth at the higher end.
While average rental figures for the whole country show a virtually flat market, this masks a real difference between regions. At the top end, the Highlands and Islands has overtaken Edinburgh and Lothians as the most expensive place to rent, with rents up 14% year on year to £698. Glasgow and Clyde have also put in a consistently strong performance and Edinburgh and Lothians has been holding steady with gentle growth.
At the other end of the market, rents in the South and East have been dropping each month, with the South suffering the worst falls and the East remaining the cheapest place to rent in the country, at £527.
If you haven’t already, whether we manage your properties or just do tenant find, it’s worth chatting to your local Your Move branch experts to find out about rent expectations in your property areas for 2019.