Property Values Rise by £...

Last week, a landlord who lives in Honor Oak called me to discuss the rising property values in SE23 and the immediate locality. He owns a varied portfolio of rental properties, primarily in Forest Hill and Sydenham but also one in Penge, so it was interesting to compare the increase in property values in all three of these locations as they are all pretty much next door to each other on the East London Line.Over the last 12 months in Forest Hill, average property values have risen from £388,700 to £454,500, a rise of £65,800 or £1,265 per week. When I considered Sydenham, average property values had risen from £338,900 to £399,200, a rise of £1,159 per week, whilst in Penge, property values had only risen by £898 per week. However, these figures to not tell the full story. As we go closer to Central London, the average value of a property naturally increases. Whilst the rise in Forest Hill for an average property is nearly £20,000 more than a property in Penge, the percentage increase is very similar. In fact property values in Penge in the last year have risen by 18% whilst in Sydenham they have risen by 17.8% and in Forest Hill they have risen by a more modest 16.9%. None the less, all the figures are very similar and what we are noticing is that the market is quite buoyant but isn't overheating because of the emerging impact of mortgage regulation and the threat of interest rate rises having an influence on buyer sentiment. It now seems certain that the spectre of interest rate rises and the uncertainty around the General Election will suppress the out of control urges that were occurring six to 12 months ago in the property market which can only be good for buyers and sellers.When considering a landlord's buy to let portfolio you must make a balance between capital growth and yields and as average yields in Forest Hill are in the order of 3%-4% you can quite clearly see that landlords have been enjoying a combined overall rental return in the last 12 months of nearly 20% on their investments. Therefore, it could be a good time to invest in the local property market as values have eased slightly.If you would like some advice about buying to let, be you a landlord with an existing portfolio or someone who is thinking of investing in the rental market for the first time, feel free to call me on 020 8699 5139, or email me at ben@benjamin-matthews.co.uk. Last week, a landlord who lives in Honor Oak called me to discuss the rising property values in SE23 and the immediate locality. He owns a varied portfolio of rental properties..