Nearly half of UK homeowners see property price rise overtake cost of yearly upkeep

Nearly half of all homeowners in England have seen their property prices rising more than what it costs them to maintain it over the last year, according to a study by estate agent comparison site, GetAgent.co.uk.

Home sellers in 43% of areas in England have seen the average property in their region increase in price at a greater rate than the annual cost of property upkeep in that area.

Across England as a whole, the average annual cost of upkeep of a property comes to about £6,046 ($7,938). This includes £1,818 in council tax, £1,139 in energy costs, £397 on water, £146 in insurance and £2,547 in maintenance.

The average house price in England has gone up by £6,220 to £254,688 in the last year. The rise in price take away the cost of upkeep, which hypothetically leaves the homeowners with £174, according to the study.

This shows “how a bricks and mortar investment is largely the best one you can make and how maintaining it is certainly money well spent,” said Colby Short, founder and CEO of GetAgent.co.uk.

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Homeowners in the West Midlands are making the most in house price appreciation with average house prices increasing by £8,569 over the last year to £206,244 compared with annual upkeep costs of £5,610, a difference of £2,959.

In second place is the East Midlands where average house prices of £201,608 — a rise of £8,128 in the last year — compared with annual upkeep costs of £5,564, a surplus of £2,564 on paper.

Properties in Yorkshire and the Humber and the North West of England have also increased in value at a greater rate than the cost of upkeep, paper surpluses of £1,071 and £557 respectively.

Homeowners in the South East have been worse off, with house prices in the region going up by £3,185 in the last year, while annual upkeep costs come in at £6,846, a deficit of £3,660.

On a local level, the top five best areas for house price growth once annual upkeep costs have been taken into consideration are in London. Hammersmith and Fulham top the table with the annual cost of upkeep on a home in the borough standing at £10,481. House prices have increased by £44,525 in the last year to £769,374, the appreciation after upkeep costs is £34,044.

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This is followed by Wandsworth, Richmond upon Thames, Hackney, and Waltham Forest.

London property prices hit a record high over the summer despite the coronavirus crisis, official figures from the Land Registry show.

Outside London, Sevenoaks in Kent has seen the largest proportion of house price appreciation left over. Property prices have risen by £28,685 in the last year, leaving £20,469 after the annual upkeep cost of £8,216.

“It’s been a topsy turvy last 12 months that’s included Brexit uncertainty, a pandemic market deep-freeze and an atmospheric, stamp duty fuelled return to form where house price growth is concerned,” said Short.

“The market has stood firm through it all and while homebuyers have been scrambling to save on stamp duty, many existing homeowners have seen their property pretty much pay for itself in terms of upkeep costs and annual price appreciation.”

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