Investors and accidental landlords with property in London have seen the value of their rental homes rise by an average of more than 10% per year over the past five years.
However, Britain’s decision to leave the European Union has cast a cloud of uncertainty over UK house prices, and values in London in particular.
In July 2016, the official UK House Price Index put the average price paid for a home in London at £472,163. This figure comes from data collected in May – one month before the EU referendum.
But how much is your rental home in London currently worth? It should be remembered that the value of any home in London is dependent on a wide range of factors. These can include the property’s size, type, location, condition, who owns the freehold and even the time of year the property is put up for sale.
To give landlords with rental property in London an indication of how much those assets could be worth, Denhan Guaranteed Rent presents the latest UK House Price Index.
As a leading rent guarantee specialist, Denhan is aware the UK HPI is not the only measure of local property values.
Unlike the Nationwide House Price Index or the Halifax House Price Index, however, the UK HPI uses sales data from the Land Registry and is calculated by the Office for National Statistics.
The UK HPI also takes into account transactions involving cash and mortgages to calculate changes to values compared with the previous month and the same time 12 months earlier.
Average annual price UK: June 2016
According to the data for August, which covers transactions that were completed in June, the average price of a home in London now stands at £472,204 – 0.94% down on the figure for May but 6.45% higher than in June 2015.
In the whole of England, the average sale price of a home in June 2016 was £229,383. This is 0.8% higher than the previous month and 9.3% more than average values in June 2015.
When examining property values in London, it is worth bearing in mind that demand for rental property continues to outstrip its supply.
While this is good news for landlords, it does not remove the feelings of uncertainty present in the London property market. Will the value of homes fall? And will tenants be in a stronger position and renegotiate their rent?
Denhan Guaranteed Rent has a solution designed to give landlords certainty in an uncertain world.
Our Guaranteed Rent Scheme gives you the peace of mind that your rental income will be paid every month for up to five years.
We agree an attractive market rental rate for your property, we find you a tenant and then we manage the property on your behalf.
You do not even need to provide an insurance policy because we underwrite our guarantee in-house. We work how you want to work – from let only to full management. Whether you own one or two properties or have 200 in your portfolio, Denhan’s will help you maximise the return on your investment, with the added bonus of guaranteed rent.
To find out more about Denhan’s guaranteed rent scheme, click on the banner below.