House Prices Will Rise In Some Areas

House Prices Will Rise In Some Areas.

There have been many headlines suggesting the property prices will crash if we vote to leave the European Union.  Certainly, many property professionals, including the Royal Institution of Chartered Surveyors (RICS) echoing the call.

Many suggest that 20-30% falls are possible in London and the South East although it is not all ‘doom and gloom’.

RICS suggest that those areas that have not yet benefited as much from the upturn after the Credit Crunch 2007-09, will get some growth.

Areas predicted to grow:

• Midlands
• North
• Scotland
• Wales
• Comment

As ever, prices for anything, including property are dictated by supply and demand. Wealthier property investors and developers are setting their sights wider looking for rental yield, if property can be purchased cheaper in the North, with lower stamp duty costs and higher rental yields then they will.  You simply have to do the numbers yourself:

• 1 bedroom flat in London £350,000 with rental income £1200pm (gross yield 4.1%) versus
• 3 bedroom semi-detached house in Hull (HU7) £50,000 with rental income £475pm (gross yield 11.4%)

Nearly treble the return.  Or put another way, buy 7 X £50,000 properties (total spend £350,000) and rent all at £475pm = £39,900 pa gross income.