In a recent survey conducted, increasing house prices as well as rents in east England have given best returns from their properties to landlords. Among the cities that have a recorded all time high in the returns in the property sector are Hertfordshire and Essex. They dominated the list and have significantly provided a very high combination of potential appreciation in capital as well as in their rental income over the last year. Their returns altogether are more than 25 percent.
Land registry notes increasing prices
At the top of the list of hotspots is Halstead situated in Essex where the average price for a housing property increased significantly from 150,000 pounds during the summer of last year to about 181,000 pounds one year later. In the same period, the average rent that was collected would have been around 7,000 pounds which gives the landlord who bought the property at the original price a whopping 26 percent return in their investment. Borehamwood in Hertfordshire claims the second spot and provided for 13,000 pounds in rent and an increase in the property asking price of 56,000 pounds from the original property value of around 260,000 pounds.
The figures do not account for taxes and any other costs which are related to offering a property. They are based solely on properties that are listed for rent and sale across Wales and England. The average rents for the properties increased by about 5 percent outside of Greater London during the third quarter of last year and during the third quarter of 2015. The capital was up by about 3 percent. However, in East England, the jump was about 6.4 percent.
Homebuyers pay less compared to renters in UK cities
Among the cities that were listed in the top 10 for investors was East Yorkshire for the northern part where the asking prices made a jump to 124,000 pounds to about 150,000 pounds and the rental income added up to a significant 5,900. Research companies said that six of the locations listed had asking prices below the average of UK. This means that they are still relatively very much affordable for the investors. Rents are likewise cheaper for these places compared to London and other areas in the southeast. It is for this reason that demand from priced-out tenants are very high.
Meanwhile, the improvement in the housing sector also strengthened the painting and decorating industry. Companies like Fitzhugh Decorators Northampton with website www.FitzhughDecoratorsNorthampton.co.uk are in an upswing also.