The summer of 2019 is set to be a good one UK property investors. The gains made earlier in the year are being consolidated and this should provide a good base for the remainder of 2019.
The first quarter of 2019 saw some reassuring progress in both house prices and rents across the UK. Now, the latest figures confirm that this was not a one-off event and that investors can expect more of the same across the rest of the year.
The latest Index of Private Housing Rental Prices from the Office for National Statistics (ONS) shows that rents are still growing. Average rental growth in May 2019 was 1.3% year-on-year, an increased pace of growth when compared to the 1.2% recorded in April. When you exclude London, annual rental growth in May climbed to 1.5%.
Elsewhere in the country rents also grew rapidly over the year to May, particularly the East Midlands (2.1%), the South West (2%) and Yorkshire and the Humber (1.8%).
House price growth is similarly encouraging, with Rightmove reporting that the average value of new properties on the market rose by 0.3% (£1,058) in the last month. This average includes all-time high prices in the East Midlands, North West, Wales and Yorkshire and the Humber, all of which saw annual growth of up to 3.4%.
Miles Shipside, director and head of housing market analysis at Rightmove, said of the figures: ‘With the country supposedly consumed by the twists and turns of Brexit, it’s surprising that the price of property coming to market is within a whisker of setting a new record. At £91 below June 2018’s figure of £309,439, it’s within touching distance of the previous high. More buoyant markets in the north and midlands are helping to nudge up prices due to the seemingly relentless strength of buyer demand. Buyers in four regions are seeing higher new seller asking prices on average than ever before.’
All of this adds up to yet more proof that the UK property market continues to grow no matter what is thrown at it. The fundamentals of the market are secure and provide steady foundations which should inspire confidence among investors.
As more and more people move into the rental market each year it is likely that both rents and property value will continue to go up. This is a great time to invest in buy to let property – have a look at our available opportunities today!
