Average gross yields for
flats in London were
largely unchanged in
H1 2020 compared to
H1 2019
In the last five years
average sales prices
have risen most
strongly in Zones 3
to 6 although, over
the longer term,
properties in Zone 1
have outperformed.
THE LONDON LETTINGS REPORT QUARTERLY
Yields
Rates of return averaged 7.1% in the first half of 2020 which is a fairly
substantial increase on H1 2019. This is a result of an increase of
average sales prices over this period. The second half of the year may
see a softening of returns if prices and rents moderate.
7.1%
2.6%
Total return for flats in London
H1 2020
H1 2019
125%
100%
50%
75%
0%
25%
6 Total return (gross yields + capital appreciation) for flats in London
Capital growth over last 5 and 10 years
25%
Source: Dataloft using Foxtons and Land Registry data
Source: Dataloft using Land Registry data
Zone 1 Zone 2 Zones 3-6
0%
-10%
Foxtons Yields Index
Long term investment performance
5 years*
Gross yields
10 years**
Capital appreciation
Q110
Q210
Q310
Q410
Q111
Q211
Q311
Q411
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Q316
Q416
Q117
Q217
Q317
Q417
Q118
Q218
Q318
Q418
Q119
Q219
Q319
Q419
Q120
Q220
H1 2020
Disclaimer: This report is produced for general information only. While every effort has been made to ensure the
accuracy of this publication, Foxtons accepts no liability for any loss or damage of any nature arising from its use.
At all times the content remains the property of Foxtons under copyright and reproduction of all or part of it in
any form is prohibited without written permission from Foxtons.
Date of publication: July 2020
*Comparing the last year (Q3 2019-Q2 2020) with five years ago (Q3 2014-Q2 2015)
**Comparing the last year (Q3 2019-Q2 2020) with ten years ago (Q3 200-Q2 2010)
Note that a delay in reporting from the Land Registry means there is limited data currently
available for Q2 2020
The ONS index (which is used
to calculate capital appreciation
for flats in London) was
temporarily suspended in
March 2020. For this report the
Q2 2020 annual price change
for London from the Nationwide
House Price Index has been
used instead. This is based on all
property.
Bespoke reporting services
If you would like further insight into investment performance by specific
property types, please contact Sarah Tonkinson, Director of Institutional
PRS and Build to Rent.
Foxtons provides industry leading advice to PRS sector investors,
supported by ongoing reporting into the London lettings industry.