Property Values Rose by £1107 in a Week in Kingston

Last week, a landlord who lives near the Coombe Hill Golf Course came into our office on Kingston Hill, opposite the hospital, to discuss the rising property values in Kingston upon Thames. He owns a varied portfolio of rental properties, primarily in Kingston and Richmond with one in Wimbledon, so it was interesting to compare the increase in property values around the area.

Over the last 12 months, in Kingston, average property value’s have risen from  £503,500 to £561,400 , a rise of just over £57,600, or £1,107 per week. When I looked at some of the surrounding areas, Richmond has had a slightly average increase in property values, at around £889 per week, whilst Wimbledon had a similar modest rise of an average increase of around £1,320 per week.

It gets even more interesting when you consider these weekly figures only tell half the story. Whilst prices have gone up considerably in Wimbledon by £1,320 per week, as prices are so high, it only represents a growth of 10.8% year on year. As much as homeowners in Richmond can be very happy with their £889 per week, Richmond property owners have only seen their values increase by 5.4% year on year but our town of Kingston saw prices rise by an impressive 11.5% year on year. It just goes to show, one must look beyond the headlines.

When considering this landlord’s buy to let portfolio, yields can be in the order of 3% to 4% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Kingston as property values start to rise. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market for the first time, please come and see me at our office on Kingston Hill, opposite the hospital.


May 2014