The Belvoir group have one of the longest running and
most detailed rental indices which are updated each quarter with the latest
stats and figures. Our Q2 index of 2016 revealed that almost 75% of the Belvoir
network reported a shortage of family housing for the rental market.
This got me thinking about the buy to let market in
Melton Mowbray. We have a lot of investors that look to spend less than
£130,000 on an investment property and this typically gets a 2 bed property -
usually a terrace or small semi detached. Apartments often fall into this
category. With the current demand these let quickly however investors with a
little more to spend can see better returns in the long term.
If you are in a position to purchase a property at
£160,000 then you would be looking at a 3 bed, sometimes with a garage if you
go for something around the Baldocks Lane area. This type of property will
appeal to families and our experience shows they will often stay in the rental
property for longer periods. This can mean that there are fewer void periods
and these type of properties usually see a higher rate of capital growth in the
long term.
Looking at the figures online you can find the sold
prices over the years which allow you to compare the performance. Baldocks lane
appears to have seen around 24% increase on the capital value of the property
since 2006. When you compare this to a road with terraced 2 bed type property,
for example Kings road this has produced around 18% growth in the capital value
in the same time period. If you remember we have seen a long recession during
this time you can see why many people still believe property is a good place to
put your money, especially if you are looking for a long term investment.
So with a shortage of family property to let, any
property with 3 or more bedrooms are currently seeing an increase in the rental
value as they come onto the market. It's important to take advice before
purchasing a property to let to ensure that your property will provide you with
the yield and capital growth you are looking for. Each Town is different. Visit
my blog for potential investment properties that are currently on the market in
Melton Mowbray or give me a call. I am always happy to discuss the potential rental return on
properties for sale across the market. Charlotte Baker 01664 569700
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