Portsmouth Property Market 2017 - Snapshot

Dec 14, 2017

Pricing Trends

Average house prices in Portsmouth have grown 8.2% year-on-year, and now sit at £208,473. This is impressive growth in a market that faces plenty of uncertainty.

The average UK wide property increased by 4.2% year-on-year, to £223,807

Policy Changes

Stamp Duty surcharges on buy-to-let and second home purchasers has had a negative impact on property transactions

Reigning in of tax breaks for investors has added to the slowdown in transactions and has also lead to investors selling off properties or consolidating portfolios to avoid greater tax on profits with the removal of tax relief on mortgage interest payments

Planning & Licensing

The state of the C4 HMO planning policy, mixed with Private Sector Housing stance on licensing and spacing standards has led to confusion from developers and investors and a growing reluctance to develop more real estate

Student Accommodation

The huge influx in purpose built high quality student supply has had a major negative impact on regular landlords and investors of HMO property as students move into high quality and well-located accommodation, leading to rent decreases and prices under pressure by falling investor yields.

Tenant Fees

New government legislation is still an unknown, but there are pressures to pull away from this stance or to at least look at regulating the market rather than wiping out fees altogether.

Investor Returns

Expected net investor yields sit around 6-7% in most markets, making Portsmouth still a very attractive place to invest and own real estate in. House prices are still comparatively low in ratio to average rents.

Published by Jamie Gray | https://www.linkedin.com/pulse/portsmouth-property-market-2017-snapshot-jamie-gray/?published=t