A landlord from Blackheath who owns two rental properties in Plumstead met me for a cup of coffee yesterday, as he is considering selling some of his portfolio. We got round to discussing how the Blackheath and SE18 property markets had performed over the years.
As he had originally purchased his buy to lets back in the late 90s it was understandably SE18 which has seen the biggest changes over time, with Blackheath having been seen as a desirable location as far back as could be remembered, the investment and change to SE18 has understandably completely transformed the local property market.
When we looked at some of the more recent figures we found that the average increase in Blackheath over the last 5 years was 54.39% or £235,038 whereas SE18 saw an increase over the same period of 53.15% which would equate to £117,310.
Over the last 12 months however Blackheath saw a rise of 1.79% (£11,707) and SE18 a rise of 2.19% (£7,242) meaning that over the last 12 months SE18’s property values outperformed Blackheath by 18.26%
If you were considering a buy to let investment in either area capital gains is only one part of the equation however, and as you can see there hasn’t really been a great deal between the areas over time, so yield (the annual return on your money) is another important consideration so with the average Blackheath home currently valued at £667,196 and the average asking rent at £1798pcm this would indicate a gross yield of 3.2%, comparatively the average SE18 home is worth £338,034 with a average asking rent of £1312 providing a 4.7% yield.
If you’d like to chat about renting or selling your home in the area call 020 8310 2416 or email