After fluctuations in house prices over the first half of the year are we settling down into a steadier market?
It turns out that depends on how you collect your figures. For instance Halifax announced an increase in house prices in June 2012 of 1% while Nationwide reported a 1.5% drop in the same period.
While this may seem at first glance to suggest that one provider is doing better than the other the truth is more complex. Nationwide directly compare figures for June 2012 against June 2011, Halifax take a 3 month period and average out a monthly figure over a full quarter. This ‘smoothing’ of the market effects perhaps shows the underlying trend more accurately than a direct monthly comparison, especially when the monthly figures are somewhat volatile.
The NAEA (National Association of Estate Agents) commented on their blog last week that if the market dips any further there may be terms such as slump, recession or even depression and you can see their comments here.
Buy to Let Mortgage Provider Paragon reported an increase in rental yields* on rental property from 6.1% in the first quarter of 2012 to 6.5% in the second quarter. Professional landlords reached achieved slightly better returns with an average of 6.9%.
John Heron, managing director of Paragon Mortgages, said: “Strong tenant demand has continued to place upward pressure on rents and we have as a result seen yields strengthen despite the pressure on consumers. It is no surprise to see that more experienced landlords achieve better yields with this being driven by their choice of property type and their approach to management.”
If you need buy to let information from specialist letting agents in South East London feel free to contact us to discuss your requirements info@rileymarshall.co.uk.
*Rental yield is defined as a property portfolio’s annual rental income as a percentage of its total value.
Thank you to Paragon for the information and quotes http://www.paragon-mortgages.co.uk
Riley Marshall 