New install but can't see images (broken link)

I've set up a new install and everything else looks fine but when I upload images to the assets section they appear as broken image links. Straightforward .jpgs. Tried a variety of files, same problem.

This is the diagnostics:

HEALTH CHECK

Perch is up to date PHP 5.3.27 version is okay, but a little out of date. Consider updating soon. MySQL 5.5.37-cll is up to date Image processing available