House prices grow at fastest rate in the UK
The average house price now stands at £200,251, according to the Nationwide House Price Index.
The monthly report highlighted the average figures for March had increased at their fastest annual rate in just over a year, with prices rising by 5.7%. The numbers had also doubled on a monthly basis, increasing from 0.4% in February 2015 to 0.8% in March.
Activity across the property market has boomed over the last few months, as both property transactions and mortgage approvals have also increased. With low interest rates and a healthy market, it appears many buyers have been keen to take advantage.
In terms of the difference between the north and south, London has never seen such sky-rocketing prices, with house prices in the capital more than double the national average at £455,984. An overpriced market for many has led to southern based buyers and investors looking further north, where prices outside of London are a healthy 9% higher than they were at their pre-crisis peak.
Graham Davidson, managing director of Sequre Property Investment, discusses the house price growth across the country:
“For more affordable properties, where prices are rising at a healthier and more sustainable rate, it’s simple – head north. While the news of growing house prices is usually a positive for investors in any location, London and other southern cities have become worryingly expensive and simply aren’t affordable to the average investor looking to make a profit.”
“While capital growth should be an important factor in any buy to let purchase, investors should also be looking at rental yields when researching a property or location. It isn’t unusual in areas like Manchester and Sheffield to see yields reach 6-7%, a stark difference from the average of 3-4% further south. Just another reason why location is key in property investment and it’s vital to carry out due diligence before investing, especially now more than ever for prudent investors.”
If you're looking for a buy to let investment, Sequre source properties that offer great potential for capital growth as well as strong rental returns. We strive to ensure that our deals provide the best value for money which is why we source many of our properties on an exclusive, off-market basis which you won’t find anywhere else. To find out more, call us on 0800 011 2277 today.