SHOULD I
WORRY ABOUT
FLUCTUATIONS
IN THE HOUSING MARKET?
In times of interest rate rises, house price
inflation slows down. This causes an increase in demand for residential
property for rent, by those that are wary of taking a step into,
or those that are stepping out of homeownership.
In times of interest rate decreases, the demand
for residential property increases and capital values follows suit.
Over the past 20 years, average house prices in Cornwall have risen
approximately six fold. An average annual increase of 29.6%.
A gross yield from single dwelling residential
properties in Cornwall can vary between 4 and 6.5%, depending on
area, accommodation and tenure.
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