Property profits

If you’ve owned a property for any significant period of time, chances are that when you come to sell it, you’ll be making a profit.

But just how much of a profit depends on how long you’ve lived at the property, as well as whether you’re moving to a new area.

If you’re looking to make a property investment in the UK, you might want to compare interest-only mortgages. These mortgages allow you to only pay back the interest on the loan each month and are a popular option with buy-to-let investors.

Areas with the biggest ten-year house price growth (outside London)

1. Thanet - 126.95%

August 2012: £146,322

August 2022: £332,070

While the average property value has broadly gone up across the country, the place with the biggest property price growth in the last decade is Thanet.

Here, the average property price has more than doubled, going up by 126.95%. Predominantly made up of the Isle of Thanet, the coastal area is home to the seaside towns of Margate, Ramsgate and Broadstairs.

2. Hastings - 114.50%

August 2012: £134,959

August 2022: £289,488

In second is Hastings, on the southeast coast, where average house prices have risen by just over double in ten years. 

Best known as the site of the Battle of Hastings in 1066, today Hastings is an important fishing port.

Its undergone regeneration over the last 20 years, with improvements such as the opening of the University Centre Hastings, Sussex Coast College and the Priory Quarter business district.

3. Medway - 104.08%

August 2012: £149,644

August 2022: £305,389

Another area in Kent comes in third place, with house prices in Medway increasing by just over 104% in the last decade.

Medway is part of the Thames Gateway development scheme which has seen significant investment in the area and may have led to an increase in prices.

In 2006, the local council projected that £1 billion would be spent in total on the local area in the following 20 years.

London areas with the biggest ten-year house price growth

1. Waltham Forest - 122.13%

August 2012: £236,018

August 2022: £524,277

Average house prices across London have increased over the last decade, but the borough that has experienced the biggest house price growth is Waltham Forest.

Here, prices increased by over 120%, from £236,018 to £524,277. Located in North East London, Waltham Forest is located on the fringes of London, with a green corridor of marshes and parkland and borders Epping Forest.

2. Barking and Dagenham - 113.05%

August 2012: £166,180

August 2022: £354,052

In second place is the borough of Barking and Dagenham, where house prices increased by just over double in the last decade.

Houses in this part of London are lower than in the rest of the capital, but rapidly on the up. The borough is located in East London and has undergone significant property investment.

3. Hackney - 101.03%

August 2012: £333,002

August 2022: £669,429

Another East London borough comes in third place, with property prices in Hackney going up by 101.03% in the last decade.

Centred around Mare Street, Hackney is an inner borough and is perhaps the one that most people think of when it comes to London’s gentrification.

The best areas for landlords to invest

For landlords, being able to buy property cheaply and let it for as much as possible, is key. But where are the best UK local authorities to make a property investment?

For landlords, being able to buy property at a cheap price and rent it for as much as possible is key. But where are the best UK local authorities to make a property investment?

1. Blackpool - 0.393%

Average property price: £140,108

Average rent: £550

Taking into account both the average property value and the average rent paid, the best place for landlords to make a property investment is Blackpool, on the Lancashire coast.

The seaside resort has an average property price of just £140,108 but has a slightly higher average rent price than similarly affordable areas.

2. Barrow-in-Furness - 0.389%

Average property price: £141,360

Average rent: £550

Another coastal town in the North West takes second place, with rent being around 0.389% of house prices in Barrow-in-Furness.

The average property price in Barrow is £141,360, with an average rental price of £550. The port town is close to the Lake District and is best known for its shipbuilding industry, home to the country’s biggest employing shipyard.

3. Burnley - 0.371%

Average property price: £121,409

Average rent: £450

Completing the top three towns is Burnley, in Lancashire. Burnley has the lowest house prices in the whole country, at £121,409, although average rents are also slightly lower than the two towns above.

The town has a strong manufacturing sector, as it has since the Industrial Revolution, and is located near both the Lancashire countryside and cities like Manchester.