Today I was helping a client who is considering selling his property in Chatham, but is now having second thoughts after I explained how to uplift his rental income by more than 50%. Having such a high rental yield is vital in this ever-changing property market.
At a time when panic is setting in due to the stamp duty and mortgage interest changes, holding on to your high-yielding properties in Medway is a wise move. A report released by Santander gives even more reason not to sell your buy-to-let properties, as it predicts the number of £1 million properties in the South East will triple by 2030.
Here are the figures:
|
Number of £1 million + properties
|
% of total housing stock
|
|||
|
2015
|
2030
|
2015
|
2030
|
|
|
London
|
307,433
|
947,606
|
8.91%
|
24.82%
|
|
South East
|
85,441
|
288,157
|
2.26%
|
6.94%
|
|
East of England
|
32,734
|
122,390
|
1.26%
|
4.25%
|
|
South West
|
18,059
|
74,407
|
0.73%
|
2.69%
|
|
West Midlands
|
12,598
|
33,218
|
0.52%
|
1.28%
|
|
North West
|
14,122
|
32,769
|
0.44%
|
0.97%
|
|
Yorkshire and The Humber
|
8,628
|
21,207
|
0.36%
|
0.83%
|
|
Scotland
|
6,605
|
22,621
|
0.26%
|
0.82%
|
|
East Midlands
|
5,793
|
17,729
|
0.29%
|
0.80%
|
|
Wales
|
3,666
|
9,032
|
0.26%
|
0.60%
|
|
North East
|
3,386
|
7,248
|
0.28%
|
0.57%
|
|
Northern Ireland
|
1,338
|
2,328
|
0.17%
|
0.28%
|
|
UK
|
499,803
|
1,578,713
|
1.77%
|
5.14%
|
View the full report here.
As you can see, the South East is predicted to rise from 85,000 households worth over £1m to nearly 300,000 by 2030. As increased numbers of amateur investors place their stock onto the market due to the incoming changes, smart property investors will be able to take advantage of the increased choice to pick the best investments in Medway property. As I’ve explained in this Medway property blog, due to external factors, Medway house prices will only be going one way — and that’s up!
Further, Santander predicts that all average property prices in the South East will rise 97% by 2030. Good news all round.
So will you be the next Medway property millionaire? It’s certainly possible and in any case property investment will net you a better return then the stock market or pensions. Property prices in Medway have risen on average by 31.76% in the last ten years and with a rental yield of 5%, assets would have risen over 80%. After recent setbacks in the stock market, if you had invested there in 2006 you would have a gross return of only 31.81%.
As always, if you wanted to talk about Medway property investment, give me a call — my number is 07944 726676. Or send me an email at hasan@home-share.co.uk.
You can follow me on LinkedIn here.
Medway Property News 