Home Property Rents soar in the capital despite ongoing Brexit fiasco

Rents soar in the capital despite ongoing Brexit fiasco

by Archit Chopra Journalist
13th Sep 19 11:38 am

The latest data released by Home.co.uk has shown a little light at the end of the tunnel for London landlords as soaring rents tempt investors back into the capital’s lettings market.

According to the figures, rock-bottom sales and rental stock levels are initiating a revitalisation of the London sales market, led by several key boroughs. Wandsworth, Hackney, Haringey, Hammersmith and Fulham, Southwark and Islington are all showing double-digit rent inflation, yields are soaring and, consequently, home prices are about to surge.

Overall, Greater London’s price correction is complete. Both supply and residual sales stock levels have shrunk and this portends a return to price growth. Such is the rate at which yields are improving, we predict a wave of investment, commencing in the central boroughs and moving outwards, which will trigger breathtaking growth in home values over the next twelve months and beyond.

Nationwide, home prices are holding steady despite all manner of Brexit hysteria. However, at the regional level, the property market presents a very mixed picture. At one extreme, northern and western regions (especially Wales) are in the final throes of their growth phase while the East of England is firmly in the grip of the inevitable price correction, following a long period of unsustainable growth. Such is the cyclical complexity of the British property market.

The South East property market, like that of London, is showing some renewed strength.

Meanwhile, both the East and West Midlands property markets are destined for a painful period of price correction after many years of excessive growth (36.4% and 35.9% respectively since September 2012).

Steady home price rises continue in the northern regions and the risk of price falls looks very low. However, only Wales continues to show real growth (year-on-year home price increases above the official rate of inflation).

Annualised price growth across England and Wales remains in the red by the smallest margin of -0.1%, making this the eighth consecutive month registering negative growth; in September 2018, the annualised rate of increase of home prices was 0.9%.

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