Sidcup House Prices vs Sidcup Rents since 2006

The Sidcup housing market is a fascinating beast and has been particularly interesting since the Credit Crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a 'property bubble' nationally as Brexit seems to be the 'go-to' excuse for every issue in the Country. Upon saying that, looking at both what we do as an agent, and chatting with my fellow property professionals in Sidcup, the market has certainly changed for both buyers and sellers alike (be they Sidcup buy to let landlords, Sidcup first time buyers or Sidcup owner occupiers looking to make the move up the Sidcup property ladder).

Sidcup house values are 1.46% higher than a year ago, and the rents Sidcup tenants have to pay are 0.3% lower than a year ago

When we compare little old Sidcup to the national picture, national property values have risen by 0.4% compared to last month and risen by 3.0% compared to a year ago, and this will surprise you even more, as nationally, property values are 19.8% higher than January 2015 (compared to 11.4% higher in the EU in the same time frame).

However, if we look further back…

Since 2006, Sidcup house values are 85.66% higher, yet the rents Sidcup tenants have had to pay for their Sidcup rental property are 32.8% higher

…which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Sidcup tenants are 9.2% better off in 'real spending power terms'.

Looking at the graph, the rental changes have been much gentler than the roller coaster ride of property values. I particularly want to bring to your attention the dip in Sidcup house values (in red) in the years of 2008 and 2009 … yet as Sidcup property values started to rise after the summer of 2009, see how Sidcup rents dipped 6/12 months later (the yellow bars)…. Fascinating!So, we have a win for tenants and a win for the homeowners, as they are also happy due to the increase in the value of their Sidcup property.

However, maybe an even more interesting point is for the long-term Sidcup buy to let landlords. The performance of Sidcup rental income vs Sidcup house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).

Whilst, it's true Sidcup landlords have benefited from decent capital growth over the last decade –with the new tax rules for landlords – now more than ever, it's so important to maximise one's yields to ensure the long term health of your Sidcup buy to let portfolio. More and more I am sitting down with both Sidcup landlords of mine and landlords of other agents who might not be trained in these skills – to carry out an MOT style check on their Sidcup portfolio, to ensure your investment will meet your future needs of capital growth and income. If you don't want to miss out on such a MOT check up, drop me a line – what have you got to lose? 30 minutes of time against peace of mind – the choice is yours.

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Speak to me: If you'd like to have a chat about anything in this article or property related, drop me an email at pj.long@drewery.co.uk – I'd love to hear from you.

Paul Long (Director & Author of The Sidcup Property Blog)