Hertford Market Metrics
Lying on Hertfordshire’s border with Essex, Hertford boasts the best of country living within touching distance of the capital. Hertford castle overlooks the town, whilst four rivers run through its heart, linking it to an assortment of country walks. Two stations tie the town to Moorgate and Liverpool Street, making it a popular location for city workers. The town's prestigious schools and market town architecture make it ideal for family life as well as those looking for a quiet home to settle down in. Supply is thin on the ground and the area's rich history, culture and beauty, means it commands a premium.
House prices in Hertford have risen 60% over the last decade, with flats rising 57%. This means the average homeowner who sold in Hertford last year pocketed £133,480 more than they paid for their home, having owned it for an average of eight years.
Prices in Hertford have remained stable over the last few years, in line with other more expensive commuter belt towns. This has meant that the gap between house prices in London and Hertford has widened slightly, offering London leavers more for their money. Last year, the average home in Hertford cost £140,230 or 23% less than one in the capital, up from a £95,370 or 19% gap in 2019. However, with stock levels remaining low, and demand for the spacious suburbs high, there’s likely to be upward pressure on prices.
Price growth by property type
With more people working from home, Hertford has found new favour with Londoners who commute to their desk two or three days a week. The one in four people who move from London have been pushing deeper into Hertford, looking beyond a 20-minute walk to the station. However, as a sought-after spot in the East of England, Hertford continues to attract most of its movers from nearby towns and villages.
These local movers are predominantly professionals looking for a place to upsize for the medium to long-term. Hertford tends to offer better value in comparison to its prime neighbour, St. Albans, where the average home costs over £500,000. Local movers mostly come from Broxbourne and Enfield, similarly priced places where buyers’ budgets stretch just as far.
Rental Outlook
The stock squeeze has been felt in the rental market more keenly than the sales market. With rental homes hard to come by, rents have been rising quickly. One-beds have seen the largest increase, up 8.2% since last year, driven by the influx of working professionals seeking a short commute into London. Meanwhile tenants looking for larger properties have been casting a wider net around the station, willing to look further afield for family homes which have been some of the most sought after properties in Hertford.
Being the prime suburban town that Hertford is, the area offers slightly lower yields than average. However, strong rental growth means that Hertford still offers landlords better returns than the capital. The contraction of yields over the last year has partly been driven by more family homes being let, which tend to be lower yielding than smaller properties, which offer higher returns.
Rental growth across the East of England peaked last summer, with rents up 10.8% compared to the same time during the previous year. Since then, growth has slowed, in line with the slower rises recorded across the Home Counties. By spring 2022, rental growth was running at 5.2%, with the average home costing £1,090pcm, breaching the £1,000pcm mark in late 2020. Going forward, rental growth is expected to remain closer to current levels than last summers’ highs.
