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