House Prices and Buy to Let Rents Still Rising
House prices have dropped by a moderate 0.2% month-on-month, according to the latest data.
Despite the fall, homes across the country are still worth a little more now than a year ago, says the Office for National Statistics.
The monthly house price report - for September 2019 - calculates an average home cost of £234,370 after a 1.3% year-on-year increase in UK residential property prices. However, prices do vary between regions.
Homes in England decreased 0.1% between the end of August to the end of September, with an annual rise of 1%, with an average property worth £250,677. In London, the process dropped 0.4% over the year.
An average home in the capital is now £474,601.
Values dropped the most in the East Midlands, down 1.2%, but rose the most in North West, where they surged by 2.8%.
House prices in Wales have dropped 2.8% since August 2019, leaving an annual rise of 2.6%, taking the average property value to £164,433.
Meanwhile, separate ONS research posted buy-to-let rent data for the year to October 2019.
Although rents rose 1.3% over the 12 months, in cash terms, this reflects a £6.50 a month increase in a monthly rent of £500 in October 2018.
Over the year, rents increased by 1.4% across England and 1.2% in Wales.
The most significant annual rental increase was in the South West (2.2%), up from 2.1% in September 2019, followed by the East Midlands (1.9%), Yorkshire and the Humber (1.8%) and the South East (1.7%).
The lowest growth was in the North East, where rents increased 0.4%, followed by London, where tenants paid 0.9% more than in October 2018.
Since January 2015, when the ONS started analysing rent data, prices paid by tenants rose across the UK by 8.1%.
Subscribers get full access to exclusive content, including forms, articles and discounts, plus our time saving Tenancy Builder tool.
Signup for our free weekly digest and get the latest news and guidance straight to your inbox (some content requires a paid subscription).
View Related Handbook Page
Investing in a Property
Investing in a private rented property can be achieved in a variety of ways. Sometimes landlords inherit a property that they then turn over to renting. Sometimes owners of properties become unintentional landlords because they are unable or unwilling to sell a property at the value the market currently dictates.