Latest property price and rental news
Prices: England and Wales
Data for February shows Wales as the stand-out performer, with prices up 3% year-on-year, versus a drop of 0.5% for England and Wales as a whole.
Although prices have grown for the third month in a row, sales transaction levels remain lower than usual for this time of year. The average house price currently stands at £302,435.
It’s mainly in East and South East that we’ve seen the greatest annual falls:
- East of England -1%
- Greater London -1.5%
- South East -1.7%
However the North East has also seen a drop, of 1.6%. Across the rest of the regions, most have experienced only a slight change up or down over the last 12 months.
Despite the property price trends being relatively static, there’s still been some good annual growth in some boroughs and authority areas, especially in Wales and along the South coast:
|January 2019||Annual growth||Monthly change||Average price|
|City of London||+22.3%||-0.1%||£1,241,085|
|Richmond upon Thames||+10.7%||+1.3%||£808,346|
|Gwnedd||+8.1%||+2.1%||£187,514 (new peak)|
|Isle of Wight||+7%||+0.3%||£244,095|
|Newport||+6.7%||+0.4%||£201,284 (new peak)|
|North Lincolnshire||+6.1%||+2%||£167,897 (new peak)|
“Given the challenges of affordability from a decade of rising prices and sluggish wage growth, a short slowdown in prices combined with increases in pay could be a positive outcome for the market in the long term.” - Oliver Blake, Managing Director, Your Move.
Rents: England and Wales
Across England and Wales as a whole, rents are up 0.4% over the last 12 months, but yields have dropped slightly and now stand at 4.3%. There’s still a clear North/South divide, with landlords in the North East seeing average returns of 5%, while in London yields are typically just 3.2%.
In the rest of the regions, the South West is still doing very well, with rents up 4% in the year to February. That’s mainly down to a buoyant market in Bristol, which is seeing an economic boom with strong job prospects and a vibrant cultural scene. It’s also home to a lot of new build to rent projects aimed at students and young professionals. The West Midlands saw a good annual rise of 3.1%, as did Yorkshire and Humber, up 2.1%.
In London, the rental market remains pretty flat. Zone 2 is still the most expensive area at £1,549 a month, but tenants can save a third by renting in the cheapest area, Zone 5, where the average price is £1,089.
Prices and Rents: Scotland
The only local authority to outperform Edinburgh over the last year is Clackmannanshire, where prices are up 16%, but that’s based on a relatively low number of transactions.
In other regions, the best annual growth has generally been in Central Scotland and the Highlands and Islands, notably:
|Perth and Kinross||+7%|
The rental market has also performed well against the rest of the UK, with average rents up by 1.7% in the 12 months to February. Four of the five regions saw rises, with Highlands and Islands leading the way with a 7.3% rise. The average rent figure there is only just below Edinburgh and Lothians, at £691 a month, versus £699 in and around the capital.
The average rent across Scotland as a whole:
- Seasonally adjusted: £579
- Non-seasonally adjusted £585
If you haven’t already, whether we manage your properties or you are on our tenant find service, it’s worth chatting to your local branch experts to find out about rent expectations for 2019.