Example Hero

Research article

Chestertons Monthly Property Markets Review June 2014

Monthly_Research

Signs of a nationwide housing recovery are growing stronger.

David Ramsdale, Research Analyst

Report Highlights

  • All 10 regions across England and Wales saw house prices outpace CPI on an annual basis.
  • The government has announced new plans to make it easier to use brownfield sites and fast track planning permission.
  • Buy-to-let lending in April was up 43% on a year earlier.
  • Aviva Investors has upgraded its forecast for annual returns on commercial property to 8.9% per annum over the next five years.

Signs of a nationwide housing recovery are growing stronger as all 10 regions across England and Wales saw house prices outpace CPI on an annual basis, according to the latest data from the Land Registry. The average house price in England and Wales moved up 1.5% from the previous month and by 6.7% on an annual basis to an average of £172,069; however the average national house price is still 5.2% below the pre-recession peak. London is still very much the front runner with annual growth of 17% in the year to April, but the East and South East are emerging from the pack with prices rising by 7.8% and 7.5% respectively. A north-south divide is very much apparent in regards to average house prices but both midlands regions and Yorkshire and the Humber outperformed the South West in both monthly and annual house price growth. Every region except the North East (-1.9%) saw house prices increase on a monthly measure.

In London only four boroughs saw advertised rents decrease on an annual basis with Barking and Dagenham (-6.6%) and Camden (-6.5%) seeing the biggest falls. Average advertised rents in the City rocketed 27.5% in the year to May to £3,342 pcm, comfortably outperforming second placed Greenwich which saw an 11.1% uplift. Elsewhere Brent (10.8%), Westminster (9.9%) and
Hackney (9.2%) also saw healthy increases. Kensington & Chelsea is the most expensive place to rent in the capital; despite advertised rents increasing just 0.8% over the last 12 months the average asking rent stands at £5,306 pcm.

Research from BDRC Continental has found that the average UK landlord earns almost £60,000 from annual rental payments, more than double the average salary of £27,174. The study found that the average yield across the country stands at 6.2% with the East Midlands and Wales providing the best returns at 6.7%. Meanwhile, a separate survey from Platinum Property Partners has found that buy-to-let landlords across Britain expect their investments to contribute around £20,000 a year to their retirement income.

Aviva Investors has upgraded its forecast for annual returns on commercial property to 8.9% per annum over the next five years, despite the possibility of a rates rise before the end of this calendar year. The group has revised upwards its forecast from the start of this year of 6.5% per annum, stating that the recovering economy and high yields available will help drive investment and flows.

Oxford Street Article Details

Contributed by

David writes reports on the London, UK and international property markets.

Research David Ramsdale

David Ramsdale

St Magnus House

020 3040 8405