A landlord I know
has owned a few properties on Hay Road for the last fifteen years. She came in
to our office to discuss the rise and fall of property prices on the street and
how this has affected her yield over the years.
In 1999, when she
purchased her first property on Hay Road the average value of a terraced house
on the street was £76.950 which had a sharp rise to £146,250 by 2004. This rise
in value continued, with average values being £174,950 in 2008 and £181,500 in
2011.
At the height of
the property boom in this area in 2007, a semi-detached house on Hay Road had
an average value of £224,975. This dropped slightly in 2013 to around £221,660,
with the average value increasing to around £232,500 this year.
When she told me of
the rents she had achieved on the street, they seem to have steadily risen over
the last 10 years. In 2006 the average rent was £800 per month for a three/four
bedroom house, and is now around £1200pcm, dependent on the property’s
accommodation. Therefore, a landlord could expect a respectable annual yield of
around 6.2% on Hay Road at the moment.
If you would like
some free and impartial advice with a potential investment, please come and see
me in our offices at no.12 Southgate, call 01243 887887 or email matt.berry@martinco.com
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