Despite the vote to leave Europe last year, the housing market in the UK has got off to a really positive start this year, with average house price in England and Wales exceeding £300,000, according to the latest LSL House price Index, who also stated that January sales exceeded expectations.
House prices in January this year were nearly £10,000 higher than in the same period last year. Although activity was high this January, with over 60,000 transactions they were still lower than the 62,059 we saw in the same period last year, this slight dip might be due to property investors trying to purchase properties before the levy in stamp duty which was introduced last April.
Top performing regions included the South East, where there was an annual rise of 4.9%, however house prices in the East of England were the highest up by 7.1% compared to December.
The rental market looks positive after it took a bit of a knock during 2016, with rental prices ending higher than they started in December 2016, with the average rent at £811 per month, compared to £790 in January last year.
Rents in the East of England saw the largest growth, closely followed by the South East. Landlords experienced average yields of 4.7% just slightly lower than those recorded in December 2015 which stood at 5.1% and those recorded in June 2016 5%.*
Tenant arrears were also some of the lowest we have seen for a long time, remaining well below the all-time high of 14.6% that was recorded in 2010.
If you are thinking of moving or investing in property why not pop into your local branch of Goodfellows for a coffee and a chat or call our team on 020 8102 0554.
Sources: LSL Housing Index
* Your Move – Buy-to-let Index