Hello readers,
After a slightly dreary second half of the year in 2025 for house prices, you will be pleased to hear that January has seen something of a recovery, with annual house prices for the UK increasing by 2.5% in the 12 months to the end of November.
A word of caution here, as you may have seen headlines about UK house prices reaching £300k in January, according to Halifax. I always tend to lean on ONS data, because this takes account of actual property sales and is therefore much more accurate.
Investors will know that 2.5% house price growth is a good rule of thumb for the UK, so it’s positive to see it pick up pace.
A good sign for Medway investors is that local property prices have increased by 3.7% for the 12 months leading up to November 2025. That’s a whole 1.2% higher than the UK average!
Medway property prices are, on average, now £298k compared to the UK average of £ 271k (according to the ONS)!
Take a look at the graph below, which illustrates how strong the Medway market is compared to the UK average for house price increases. After a weak end to 2024 and start to 2025 (due to a larger adjustment after the COVID bubble), Medway house prices have been storming ahead!
The same story holds for Medway rents, with local rates outpacing the UK average increase of 4% and the South East average of 3.8% for the 12 months to December 2025. Medway rents have increased by 6.7% for the same period.
Check out the graph below, which shows how Medway rents have typically outperformed the UK average since 2016!
With this great appreciation in both property values and rental rates, the question is how Medway seems to so regularly outperform the UK.
My view here is simply because of how affordable the area is compared to towns closer to London coupled with the excellent connections to the city and local Kent districts.
There has also been an increase in demand from buyers over the past few months, leading to upward pressure on house prices and with lenders relaxing rules (such as Santander offering a 98% mortgage), I wouldn’t be surprised if we see these increases continuing throughout 2026.
If you’re thinking of expanding your portfolio or purchasing your first investment property, Medway is an excellent choice! I’d be more than happy to answer any questions or give any direction you need – the best way to get in touch is by emailing hasan@home-share.co.uk.
Hasan