With a turbulent year in terms of the property market and consumer confidence in general, we’ve had a lot of Ipswich landlords ask us our views on the current market state and future predictions of the Ipswich housing market. With Brexit, a general election and news reports fluctuating with different views on the state of the housing market, it’s very difficult to cut through and see how the market is doing locally. Landlords in particular are becoming less secure about whether or not now is a good time to invest.
We thought it would be a good idea to review how Ipswich is performing in regards to buy to let which will help you make a more informed decision. To do this we’re looking at house prices and rental growth specifically. In other words looking at the basic yield over a medium to long term period. Firstly looking rental growth, it makes for very good reading;
|Area||Rental Growth 2019|
The south east as always features very high on the annual rental growth list. Performing exceptionally well again, and in good news for landlords and would be investors, is Ipswich with growth close to 4.5% and second in the whole country. This is not only a fantastic sign in terms of continued growth on your investment, it’s only improving your yield every year. In a bank account you’re stuck at the same rate for however long your tied into or review.
The next step is to look at the average house price over the course of the year;
So despite market ups and downs national and local, where the market has fluctuated by 4.7% in terms of positive and negative growth, the Ipswich housing market has ultimately risen yet again for the 8th consecutive year. Again, yet another sign of market confidence locally but also improving your buy to let yield further still.
The average buy to let yield in Ipswich stands at 4.2% currently. Compare this to the best savings account available on the market today (2.35% on a 2 year fix) and your investment could be performing 2% better per year on average. Based on the current average Ipswich house price that’s £4,000 extra (or £8,000 over the savings investment term) you could be potentially earning. So with increasing buyer confidence, strong rental demand and all the stats over a turbulent market showing strong growth, perhaps 2020 is your year to invest further into the Ipswich market? For guidance on investment, latest legislation and different types of investment opportunities please do feel free to get in touch.