RESIDENTIAL PROPERTY MARKET REVIEW - October 2019 - Chestertons MENA
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Chestertons Monthly
RESIDENTIAL
PROPERTY
MARKET
REVIEW
October 2019
chestertons.com
1CONTENTS
Economic Overview 01
Sales Market 03
National sales 03
London sales 06
New homes 08
Lettings Market 10
National lettings 10
London lettings 11
Investment market 13
Contact 15
Nicholas Barnes – Head of Research
“Welcome to
our latest monthly
review of national and
London residential
property markets.”
2ECONOMIC OVERVIEW
GDP Growth
Fears that the economy might slip into recession in the atꢀ1.2% in October but lowered its 2020 forecast from
thirdꢀquarter have eased. The ONS estimate for GDP growth 1.1%ꢀto 1.0%.
in the three months to August is 0.3%, thanks to a stronger
The extension to the 31st October Brexit deadline and the
performance in July from the services sector, manufacturing
likely December General Election means that the outcome
and construction. However, overall growth is weak with
remains as uncertain as ever. We were tantalisingly close
consumer spending flat and many corporate investment
to securing a deal, yet there is still a possibility that the
plans on hold, while the economy remains vulnerable to
country could remain in the EU. Hardliners in both camps
theꢀimpact of the global slowdown and Brexit.
aside, there is anecdotally a growing number of Remainers
Nonetheless, the labour market is still robust and earnings and Brexiteers who now just want closure whether we leave
growth is comfortably above inflation. The Treasury’s or stay.
forecasting panel held its 2019 GDP growth projection
Figure 1: UK GDP growth outlook
3.0%
2.5%
2.0%
1.5%
1.6% 1.7% 1.7%
1.0% 1.4%
1.2%
0.5%
1.0%
0.0%
2018 2019 2020 2021 2022 2023
Source: ONS; HM Treasury Forecast Panel
1Inflation & interest rates
The annual rate of inflation (CPI) stabilised at 1.7% in 7thꢀNovember, by which time we may have left the
September. The RPI annual inflation measure came down, European Union – or not. The Treasury’s forecast panel
from 2.6% in August to 2.4%. The 2019 forecast for CPI shows Base Rate remaining unchanged for the rest of
from the Treasury’s September forecast panel wasꢀraised 2019 but rising to 1.0% in 2020, although these could
from 1.8% to 1.9%, while the RPI forecast rateꢀwas held at change depending on the Brexit outcome.
2.6%. The forecasts for 2020 for both inflation measures
UK 3 month Libor rates have risen again this month and
have also been held at, respectively, 2.1% and 2.9%.
stood at 0.80% as at 23rd October. 5 year swap rates have
The Bank of England’s Monetary Policy Committee also risen to reach 0.69% at the same date but are still
(MPC) Meeting did not meet in October and Base Rate 44% lower than at the same point last year.
remains at 0.75%. The next meeting is scheduled for
Figure 2: Inflation & Bank Rate forecasts
4.0%
3.5%
3.2% 3.2%
3.0% 2.9% 3.0%
2.7% 2.6%
2.5%
2.1% 2.1% 2.0% 2.1% 2.1%
2.0% 1.9%
1.5% 1.78%
1.18% 1.53%
1.0%
1.0% 0.75%
0.75%
0.5%
0.0%
2018 2019 2020 2021 2022 2023
Source: HM Treasury Forecast Panel & ONS
Bank Rate (Q4) CPI RPI
Employment and earnings growth
The UK employment rate has fallen slightly to 75.9% Annual growth in average weekly earnings rose by 3.8%
overꢀthe last three month period but is still higher than at both including and excluding bonuses. After adjusting for
theꢀcorresponding point last year (75.6%). Unemployment inflation, annual growth in pay (including bonuses) was 1.9%
rose slightly over the period to reach 3.9%, although remains and excluding bonuses was 2.0%. In real terms, annual pay
lower than at the same point last year (4.0%). growthꢀhas been positive since December 2017.
2SALES MARKET
National sales
Having risen for the past four months, residential sales fell same time last year, reflecting a combination of Brexit
in September – by 7% nationally – although compared to nervousness and sluggish price growth. The average
September last year they were 6.3% higher. Despite the number of new listings per week was the lowest recorded
slowdown in the national housing market, total sales in the atꢀthis time of year since October 2009.
first nine months of the year are less than 2% down on the In contrast, buyers remain active with the number of sales
corresponding period in 2018. Sales have been supported agreed virtually unchanged (-0.5%) on the same period a
by the Help-to-Buy scheme, low mortgage interest rates year ago. There is evidence that those buyers and sellers in
and by the high proportion of tax exempt transactions: the market are more committed, with data showing that
according to Zoopla, 59% of properties for sale over the the percentage of sales agreed that have fallen through
lastꢀyear would have been exempt from stamp duty for soꢀfar this year is the lowest since 2015. However, while the
first-time buyers. number of buyers has held up well, the lack of new property
Rightmove reports that the number of sellers coming to listings coming to market now may impact on transaction
market in October was down by 13.5% compared to the numbers going forward.
Figure 3: Monthly residential property transactions (non-seasonally adjusted)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19
UK England Source: HMRC
National annual house price growth accelerated in August salaries, with property values increasing nearly three times
– to 1.3% in the UK and 1.1% in England. The average faster than the wages of their occupants. According to
house price in the UK now stands at £234,853 compared the research, the average UK home rose by around 43%
to £251,233 in England. Analysis from mortgage broker in value between 2008 and 2018, whereas the average
Private Finance reveals that UK house price growth over the salaryꢀincreased by 15%.
last decade has significantly outstripped that of people’s
3Figure 4: Average annual house price growth: UK & England
4%
3%
2%
1%
0%
Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
UK England
Source: Land Registry/ONS
At regional level, annual price growth is strongest in the a fall in prices dropped to two, with London (-1.4%)
North East (3.3%). The number of regions recording experiencing the steepest decline.
Figure 5: Average regional house price & annual price growth (Aug 2019)
500,000 5.0%
450,000
3.75%
3.3% 3.1%
400,000
2.6% 2.4% 2.5%
350,000
300,000 1.0% 1.25%
0.9%
200,000 0.0%
0.1%
250,000 - 0.6% -1.25%
150,000 -1.4%
-2.5%
100,000
50,000 -3.75%
0 -5.0%
North North East West Yorks & South East of South London
East West Midlands Midlands Humber West England East
Avg prices 12 months growth Source: Land Registry
Rightmove data reveals that there is usually an autumn growth at least turned positive for the first time since
bounce in asking prices, with an average rise of 1.6% June, evidence perhaps of the beginnings of a recovery in
in October over the last 10 years. Price growth is much the market although we will need more than one month’s
slower this year at just 0.6%, the lowest at this time of data to confirm this.
year since October 2008. Nonetheless, monthly price
4Figure 6: Monthly change in average asking prices
3%
2%
1.0% 1.1%
1%
0.4% 0.9% 0.3%
0.7% 0.7% 0.4% 0.6%
0%
-0.2% -0.2%
-1%
-1.0%
-1.7% -1.5%
-2%
-3%
Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Source: Rightmove
There were 35,010 new first-time buyer mortgages highest monthly total since August 2007. The number
completed in August 2019, 0.7% more than in the ofꢀhomemover mortgages rose by 8% over the month
same month in 2018, 7% higher than in July and the butꢀwas 5.5% down on the August 2018 figure.
Figure 7: Mortgage approvals for house purchase
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
First time buyers Home movers Source: UK Finance
Industry figures suggest that between 25% and 33% It is hoped this will reduce the period between offer and
ofꢀpotential housing transactions currently collapse exchange by eliminating those not honest about their
whenꢀbuyers or vendors withdraw from deals after the reasons for selling or buying a property.
offerꢀprocess has been completed, costing the housing
However, there are genuine reasons why deals sometimes
market approximately £270m a year.
fall through, e.g. when a mortgage is refused or revised or
To combat this, the Government will trial its proposed new there is a breakdown in the property chain. There may also
reservation agreement between January and March next be a change in the personal circumstances of the buyer or
year. The proposed scheme would see both buyers and seller – e.g. job change, redundancy, relationship break-up –
sellers being asked to put down a cash deposit of between which would need to be taken into consideration.
£500 and £1,000 before entering into the offer process.
5London sales market
Average house prices in Greater London fell by 1.4% in which prices have fallen. The average house price is now
the year to August, marking the 17th month in row in £472,753 according to the Land Registry.
Figure 8: Annual price growth in Greater London
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
-2.0%
-2.5%
-3.0%
-3.5%
Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
Source: Land Registry
Rightmove reports that the average price of newly listed capital. Firstly, the increasing scarcity of properties coming to
properties in London rose by 2.4% in October, more than market. Secondly, a stronger recovery in prices closer to the
offsetting the 2.2% fall recorded in September. There appear centre of London, and last but not least, a small (0.8%) year-
to be three main drivers for this tentative recovery in the on-year increase in the number of sales being agreed.
Figure 9: Average asking prices by London transport zone
Transport for Avg. price
Monthly change Annual change
London zones October 2019
Zone 1 £1,356,878 6.4% 0.6%
Zone 2 £730,639 2.3% -2.3%
Zone 3 £593,311 2.3% -0.2%
Zone 4 £477,091 1.3% -1.6%
Zone 5 £474,928 0.8% -0.2%
Zone 6 £486,586 -0.6% -2.5%
Source: Rightmove
Supply is substantially lower than last year, with nearly number of sales fell by around 21% in Q3 compared to the
30% fewer properties coming to market in October which previous three month period and by 25% compared to the
is the worst year-on-year decline in any month recorded by third quarter in 2018.
Rightmove since August 2009. Many owners are awaiting
At borough level, 10 boroughs recorded an increase in
a sustained recovery in prices while Brexit nervousness
sold prices in the year to August with Hackney (5.4%)
is arguably more heightened than outside the capital.
andꢀLewisham (3.9%) seeing the strongest growth.
Preliminary data from the Land Registry suggest that the
6Figure 10: Annual price growth by London borough (Aug 2019)
Hackney
Lewisham
Barking & Dagenham
City of London
Lambeth
Redbridge
Islington
Bromley
Greenwich
Newham
Richmond
Hounslow
Enꢀeld
Southwark
Kingston upon Thames
Haringey
Wandsworth
Barnet
Camden
Bexley
Ealing
Merton
Tower Hamlets
Havering
Harrow
Croydon
Hillingdon
Hammersmith & Fulham
Waltham Forest
Sutton
Westminster
Brent
Kensington & Chelsea
-10% -8% -6% -4% -2% 0% 2% 4% 6%
Source: Land Registry
In contrast to the mainstream market, the prime regarding Brexit while others frustrated at not attracting
locations, in particular in central London, enjoyed a very offers placed their properties on the rental market.
busy third quarter. Chestertons recorded a 15% increase in
In the prime locations in central London, Lonres reported
the number of newly registered applicants and a 12%
that the number of properties on the market at the
increase in offers compared to the period July-September
beginning of October was 14% lower than at the same
2018, while overall sales in prime central London rose by
point in 2018. The shortage of available properties has
7.5% according to Lonres. Sales volumes would likely have
resulted in an increase in the number of multiple bids,
been higher if the number of properties available for sale
with buyers competing for the best properties and
had been higher. Many vendors were awaiting clarity
creating price tension.
7Although investors were by and large fairly quiet, more There is evidence that prime values are stabilising. At the
pent-up owner-occupier demand was released as a result end of September, the Chestertons Index reported that
of a combination of factors. Firstly, the market was average prices for second-hand properties were 0.1%
dominated by owner-occupiers whose reasons for moving higher than at the end of June. Average prices fell by
are typically needs-driven and therefore cannot be placed 1.9%ꢀin the year to end-September compared to a
on hold indefinitely. Secondly, buyers are still able to take 12ꢀmonth fall of 3.9% recorded at the end of June.
advantage of low mortgage interest rates.
Sellers still needed to price sensibly in order to attract
Finally, prime values have fallen by around 20% since offers but the number of price reductions recorded by
2014, while overseas buyers have additionally benefitted Chestertons fell by around one fifth compared to the
from the depressed pound, which fell to a 34 month previous quarter, suggesting the gap between buyer
lowꢀagainst the dollar in early September. Allowing for andꢀseller expectations has narrowed. The level of
theꢀcombined effect of the drop in prices and sterling, discounting also reduced and Lonres reported an
aꢀproperty costing £1.5m in July 2014 would now cost averageꢀdiscount on initial asking price of 7.7% over
£774,000 – a discount of just over 48%. Brexit remains theꢀperiod compared to 8.7% in the previous quarter.
aꢀconcern, but whatever the outcome of the negotiations, Asꢀatꢀthe beginning of October, 46% of available stock
London remains a highly attractive location for had been reduced in price.
international buyers who intend to hold onto
propertiesꢀfor the long term.
Figure 11: Prime London v Greater London 12 month price growth
20%
15%
10%
5%
0%
-5%
-10%
Greater London Prime London Source: Land Registry & Chestertons Research
(Note: latest data for Greater London is at August 2019)
8New homes market
National years in UK regional cities, according to research by build-
New data from the Ministry of Housing, Communities to-rent (BTR) developer and operator PLATFORM_. The
andꢀLocal Government show that the number of new research identified 6,131 brownfield sites across 24 of
build homes under construction has fallen. New build the UK’s largest urban centres that have capacity for the
dwelling starts in England were estimated at 37,220 in the development of 367,711 homes. If all of the identified
latest quarter (April-June 2019), a 2% decrease compared sites were used to develop for-sale housing, they would
to the previous three months and an 8% decrease on a take 16 years to fully build out. However, if they were
year earlier. In the year to June 2019, construction starts earmarked for rental apartments, they could be built out
totalled 160,640, a 1% decrease compared with the year in as little as four and a half years because of the quicker
to June 2018. absorption rates for rental schemes compared with private
sale developments.
During the same period, completions totalled 173,660
- an increase of 8% compared with last year – but still a An investigation conducted by Property Week has
long way behind the rate needed to meet the government revealed that local authorities are not using all of the
target for new homes. Most local authority areas in Section 106 and CIL payments they receive. Of the at
London – where a lack of housing is most acute – showed least £4bn received between 2013 and 2018, around
a decrease in starts and completions between June 2018 63% remains unspent while over 10% of the local
and June 2019. authorities failed to respond to Property Week’s freedom
of information request.
Many developments are on hold due to a combination of
Brexit uncertainty, rising labour and materials costs, the London
latter exacerbated by the weak pound, and slower sales There are mixed messages coming from the new homes
demand. Consumer demand for new build homes has market in London. On the one hand, many small to
dropped to a six-year low according to the Federation of medium sized developers are struggling to sell at prices
Master Builders (FMB). which will give them an acceptable profit. Meanwhile, the
larger developers are now lowering average asking prices
Brownfield sites could provide 71% of the housing the
but delivering larger schemes to compensate for any loss
government has calculated is needed over the next 10
of revenue.
Figure 12: London new homes’ sales: Q3 2014-Q3 2019
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Inner London Outer London Source: Molior
9This largely explains why sales of new homes in the Nonetheless, the market is far from fully recovered and
thirdꢀquarter rose by 13% compared to the previous atꢀthe end of September, nearly half (48%) of new homes
quarter and were 19% up on the same quarter in under construction were unsold, equating to just over
2018.ꢀOpportunistic overseas investment has also 30,000 properties. There was also a 17% increase in the
beenꢀboostedꢀby the continued weakness of the number of unsold completed homes over the quarter,
poundꢀand theꢀdeteriorating situation in Hong Kong although this equates to only just over 3,100 properties.
which has triggered an increase in flight capital. Despite a quarterly increase, sales of new homes to
build-to-rent investors in the year to September are
42%ꢀdown on the corresponding period in 2018.
LETTINGS MARKET
National lettings
According to the Homelet Index, average rental values increase on last year. Rents rose in all 12 of the regions
across the UK rose by 2.5% in September 2019 when covered in the research, with the strongest growth
compared to the same month a year previously, taking the recorded in the North West (4.4%) and the weakest
average monthly rent to £967. When London is excluded, growth in the South East (0.2%).
the average UK rental value was £797, reflecting a 2.2%
Figure 13: Regional monthly rents & 12 month rental growth at Sep 2019
£1800 5.0%
4.4%
£1600 3.75%
3.8%
£1400 3.4%
3.3% 3.1% 2.5%
2.0%
2.5% 2.4%
£1200
1.3% 1.25%
£1000
0.0%
£800 0.2%
-1.25%
£600
-2.5%
£400
£200 -3.75%
£0 -5.0%
North East South Greater North UK Averageꢀ West Yorks & East Of South
West Midlands West London East Midlands Humber England East
Source: Land Registry
Monthly rent Annual growth
10The Association of Residential Lettings’ Agents (ARLA) said Rightmove reports a similar trend, noting that a shortage of
that 64% of agent members it canvassed reported landlords homes available to rent coupled with strong demand from
had increased rents during August, the highest figure on tenants has led to record asking rents in all areas across
record. This is an increase from 63% during July and the Britain except Scotland and the North East of England.
fourth month in a row during which agents have reported Nationally, the number of available rental properties is 13%
similar figures. The rent hikes are largely being caused by below the previous low recorded in theꢀthird quarter of 2015.
landlords seeking to recoup the higher costs of running their
Despite rising rents, a study from Zoopla concludes that
properties caused by the tenant fees ban and the higher
rental affordability has been improving since the first quarter
taxꢀlandlords with a mortgage are now paying compared
of 2016 as earnings have risen faster than rents. UK rents
toꢀa few years ago. The number of homes coming onto
are 31.8% of average earnings, lower than the 10-year
theꢀmarket to rent has increased, but despite this supply is
average of 32.1% and a recent high of 33.3% (2016 Q1).
struggling to keep up with demand, which is another reason
Rents are most affordable in the North East (22%) and
why landlords feel emboldened toꢀincrease their rent.
leastꢀaffordable in London (46% for a single person).
London lettings market
Rents in London increased by 3.3% in September 2019 predominantly smaller “part-time” landlords, continue to
compared to the same month last year, taking the average offload properties in the face of reduced profitability with
rent to £1,694 a month according to Homelet. Rents in Rightmove reporting that available supply in Q3 this year
London are now 75% higher than the UK average and was 24% down on the same period last year.
112.5% higher when London is excluded. Landlords,
Figure 14: London borough monthly asking rents for 2-bed flats (as at 23 Oct 2019)
Westminster
City of London
Kensington & Chelsea
Camden
Hammersmith & Fulham
Wandsworth
Islington
Southwark
Tower Hamlets
Hackney
Lambeth
Merton
Richmond
Hounslow
Ealing
Greenwich
Barnet
Brent
Newham
Kingston
Haringey
Lewisham
Harrowꢀ
Enfield
Waltham Forest
Hillingdon
Redbridge
Croydon
Sutton
Bromley
Barking & Dagenham
Havering
Bexley
0 1,000 2,000 3,000 4,000 5,000 6,000
Source: Zoopla
11The summer to early autumn months are traditionally the There are signs that tenants have become more selective
busiest of the year for the prime London lettings market and will often want to view more properties than last
but this year has been exceptionally active. In the three yearꢀbefore making a decision. We have also noticed
months to September Chestertons saw a 59% increase in anꢀincrease in the number of tenants requesting shorter
the number of lets agreed compared to the same period leases and with break clauses, for example12-18 month
in 2018. Chestertons’ central London offices recorded the contracts with a break at six months. This has often
highest increase in lettings – 25% up on the preceding proved acceptable for those landlords who are waiting
three month period and one fifth higher than the same forꢀan opportunity to sell and who don’t want to be tied
period last year. toꢀlengthy contracts.
Demand from overseas higher education students was Despite the significant increase in tenant demand,
once again strong but the increase is primarily due to two average rents in the prime locations only rose by
key factors: rents reduced to a more attractive level to 0.6%ꢀbetween July and September according to the
tenants and the supply of properties available to rent rose Chestertons Rental Index, although over the 12 months
in the second quarter. However, the increase in lettings toꢀSeptember, our Index recorded an increase of 2.3%.
absorbed much of the increase in supply and at the end Nonetheless, even in those locations where supply was
of September the number of properties available to rent limited, tenants remained price sensitive and Lonres
in the locations covered by Chestertons was 17% lower reported that at the beginning of October, 28%
than at the same point in 2018. ofꢀproperties available to rent had experienced
aꢀreductionꢀfrom the original asking rent.
12INVESTMENT MARKET
A recent Rightmove survey shows almost a quarter of However, the majority of these landlords are small –
landlords (24%) are planning to sell at least one property the average portfolio size in the survey was just three
from their current portfolio despite record asking rents. properties, with a quarter of respondents owning just
Of these, 13% say they will be decreasing their portfolio one.ꢀMoreover, 30% of landlords surveyed are still
and 11% say they will be selling all of their rental planning to increase their portfolio, with the majority
properties. The most common reasons given for selling ofꢀthose saying that property still delivers better
are the changes to legislation, including the recent tax returnsꢀthan other investments.
relief changes and the ban on tenant fees, which have
increased operating costs for some.
Figure 15: BTL Mortgage Lending (number of loans approved)
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
House purchase Remortgage Source: UK Finance
Buy-to-Let (BTL) mortgage lending for purchase rose by completed build-to-rent scheme was 133 units, rising
1.7% in August but was 3.3% down on the same month to 245 units for schemes under construction, while the
last year. Re-mortgaging fell by 8.6% during August but average size of schemes in the planning system is higher
was less than 1% lower than a year ago. still at 325 units.
The number of build-to-rent homes in the UK has grown More large investors are targeting the senior living market.
to 148,046 in the third quarter of 2019. This marks AEW UK is looking to replicate the success its parent
a 20% increase compared with the same period last company has enjoyed in the US where it has about
year, according to research commissioned by the British £2.4bn assets under management. AEW is thought to
Property Federation. The number of completed flats rose be targeting a fund of £300m-£500m in the UK. The
by 31% over the same period to 34,840. The number of majority of senior living homes in the UK are built for
flats in planning has increased by 23% to 77,446. The sale but AEW UK is planning to fund the development
average number of flats in build-to-rent developments of homes for rent. Other investors who have followed
is also increasing. In Q3 2019, the average size of each this route include Birchgrove, which is backed by Bridges
13Fund Management, and Legal & General via its Inspired – The Monaco family behind some of the tax haven’s most
Villages platform. McCarthy & Stone has also started expensive property developments has entered the prime
London market. Real Estate, Design & Development (Redd),
marketing retirement homes for rent. Meanwhile, Audley
owned by a member of the Marzocco family, has bought a
Group has entered into a joint venture with Schroders
£100m portfolio in Mayfair, Knightsbridge and Belgravia.
Real Estate and Octopus Real Estate to develop four sites
across England with a gross development value of £400m. Committed investors in London can still benefit from
The deal is set to bring the total number of Audley sites to lower prices, higher yields and the low cost of borrowing
20, offering 2,000 units nationwide. available on buy-to-let mortgages. Gross yields on
individual properties rose again in the three months
In other news:
to September 2019. In the prime locations covered by
– Invesco Real Estate is gearing up to double the size of its Chestertons, average yields stood at 3.3% at the end
European residential portfolio to £4bn over the next five of September compared to 3.2% at the end of June
years, with possibly 40% allocated to the UK.
2018. Inꢀprime central London yields rose from 2.9% to
– Sigma Capital has expanded its build-to-rent portfolio 3.0% over the same period. Yields in excess of 4% were
intoꢀLondon with the acquisition of two sites in Havering recordedꢀin six of the locations covered by Chestertons.
andꢀBarking.
Figure 16: Gross initial yields for 2-bed flats, zero gearing (at 23 Oct 2019)
Barking & Dagenham
Sutton
Havering
Bexley
Redbridge
Merton
Croydon
Hounslow
Greenwich
Kingston
Newham
Lewisham
Hammersmith & Fulham
Brent
Ealing
Harrowꢀ
Hillingdon
Waltham Forest
Wandsworth
Enfield
Tower Hamlets
Westminster
Richmond
Barnet
Camden
Bromley
Islington
Haringey
City of London
Kensington & Chelsea
Hackney
Southwark
Lambeth
0% 1% 2% 3% 4% 5% 6%
Source: Zoopla & Chestertons Research
14Hampstead
Kentish Town
Camden & Primrose Hill
Islington
St. John’s Wood
Little Venice
Hyde Park & Marylebone Covent Garden
Notting Hill
Mayfair
Kensington
Tower Bridge Canary Wharf
Knightsbridge & Belgravia
Chiswick South Kensington Chelsea Westminster & Pimlico
Greenwich & Blackheath
Fulham Battersea Park
Kew Barnes
Parsons Green
East Sheen
Battersea & Clapham
Putney
Richmond Wandsworth
International offices
Africa Carribbean Middle East
Asia Europe
Contact
Chestertons is one of London’s largest estate agencies and has a network of over 30 offices offering sales and lettings
services, in addition to a strong international presence. For further information please contact one of the following:
Nicholas Barnes John Woolley
Head of Research Head of Valuation
T: +44 (0) 20 3040 8406 T: +44 (0) 20 3040 8513
E: nicholas.barnes@chestertons.com E: john.woolley@chestertons.com
The contents of this report are intended for the purpose of general information and should not be relied upon as the basis for decision taking on the part of
the reader. Although every effort has been made to ensure the accuracy of the information contained within this report at the time of writing, no liability is
accepted by Chesterton Global for any loss or damage resulting from its use. Reproduction of this report in whole or in part is not permitted without the prior
written approval of Chesterton Global. October 2019.
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