What is UK property really worth? Here are three ways to find out

Are British house prices too high? And how do you value residential property anyway? Phil Oakley looks at some of the most popular valuation methods to find out what property in Britain is really worth.

Most of us have a view on Britain's housing market.

For some, houses are ridiculously expensive. Others take the view that the only way is up, as we are a small island with a shortage of houses. Ask someone the value of their own house and you usually find that they think they know best.

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Row 0 - Cell 0 Row 0 - Cell 1 % of rent
Monthly rent£718Row 1 - Cell 2
Annual rent£8,616Row 2 - Cell 2
UK average house price£165,738Row 3 - Cell 2
Gross rental yield5.20%Row 4 - Cell 2
Row 5 - Cell 0 Row 5 - Cell 1 Row 5 - Cell 2
Annual rent£8,616100%
Insurance premiums-£215.40-3%
Replacement/maintenance-£861.60-10%
Voids (one month's rent)-£718-8%
Agency fee-£861.60-10%
Net income£5,959.40Row 11 - Cell 2
Net yield3.60%Row 12 - Cell 2
After-tax yield at 20% tax2.90%Row 13 - Cell 2
Mortgage costs 60% buy-to-let at 5%-£6,975.99Row 14 - Cell 2
Net Income after mortgage costs-£1,016.59Row 15 - Cell 2

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.