Cheltenham and Gloucester census figures released

It seems a distant memory three years ago when we were filling in our Census Returns, but now the figures are beginning to be released, especially the statistics about property. The figures for each individual town and city have been released, so let’s look at both Cheltenham and Gloucester’s figures. In the town of Cheltenham there are 46,137 households, just over six out of ten properties are owned,  62.9% to be precise (29,063 households) whilst in Gloucester of the 46,444 households 65.4% or 30,416 households are owned.  Renting interests me and in Gloucester there are 7,686 rental properties (16.5% of households being rented) whilst in Cheltenham there are surprisingly more rental properties with 21.1% or 9,763 households being privately rented.

So, with  between 16 and 21 % of households being rented in both Cheltenham and Gloucester, which is very much above  the national average of 15.6%, where does that put both Cheltenham and Gloucester? For renting, Cheltenham is just out of the top 25% of local Authorities when it comes to renting 92nd out of 347 authorities whilst Gloucester is the top 15% of local authorities when it comes to renting (52nd out of 347 authorities).

So does that mean renting isn’t booming in Cheltenham and Gloucester? .. quite the opposite! Demand continues to be good from quality tenants who are prepared a pay a decent rent, but only for a decent property. On average over the last 12 months, landlords in Cheltenham have achieved a total return on their buy to let investment, when you combine yield and capital growth, of 11.2% whilst in Gloucester it has been 12.3% . 

Also, if there were a glut of rental properties, there would be an over supply of property to rent, driving prices down. In the lettings industry, it is recognised there will always be 5% of the rental market up for rent at any one time, which means there should be 488 properties to let today in Cheltenham (5% of 9,763 as mentioned above) .. I am pleased to tell you there are only 406 as I write this article!  In Gloucester the picture is more or less the same where there were 384 properties to rent (if you assumed 5% were on the market) today there 371 properties available.

Don’t get me wrong, tenants are more discerning in the properties they rent. Woodchip wallpaper and no central heating won’t cut the mustard anymore. However, present your Cheltenham and Gloucester property to a good standard and price it right and you should do very well. If you are considering becoming a landlord or are an established landlord who is thinking of buying another property to rent out in Cheltenham and Gloucester, please do your homework. Feel free to ask my opinion on what makes a 'decent property'. I don't sell property, so it's in my interest for you to buy the right property for you, not me. I don't charge for that opinion, because I hope you will recommend me to your friends, which in fact is the best compliment you can make.

3 Bed House - Rosebay Gardens Cheltenham 5.3% Yield

                            http://www.zoopla.co.uk/for-sale/details/34231056

I have just seen this property on the market with Peter Ball . Three bed family house, good area therefore ideal for families, who tend to stay longer. On the market for £170,000 and should rent for £750 PCM, giving a yield of 5.3 %

                            http://www.zoopla.co.uk/for-sale/details/34231056

Click on the links and check out what Peter Ball have to say. I think this is well worth a look as an investment opportunity.If you would like some advice on this or any other property please contact me.

Property Values along The A40

As we enter into the late summer the most recent set of property price indices have been released showing some substantial property value increases in both Cheltenham and Gloucester.  Over the last three months an average property in Cheltenham has risen from £288,900 to £297,900 a rise of £9,000 or just over 3.1%.  The average property in Gloucester has also risen from £192,200 to £204,000 a rise of £11,800 or 6.1%.  This is great news for anyone who owns their own home in either Cheltenham or Gloucester. 

However, the A40 has other towns along its length and as a landlord one must consider other towns and cities to invest in. The first major town to the East along the A40 is Witney. An average property in Witney has seen an increase in property values by £10,000 over the last 3 months, taking an average property up in value by 3.4% up to £334,000. In a Westerly direction, we get to Ross-on-Wye, where average property values have risen by £8,200 to £277,600.

I find it interesting that four places along the A40 – Ross-on-Wye, Cheltenham, Gloucester and Witney all within a stone’s throw  of each other, can experience such variations in property prices. With average rents steadily rising by 1 to 2% a year and with continuing troubles for first time buyers raising the £10,000+ for the deposit and fees, I can only see greater demand for rental properties in Cheltenham and Gloucester, which will mean more people will continue to buy property for Buy to Let, and where there is greater demand, the price tends to go up. This however, is only my opinion.  If you want to chat about any matter relating to property in Cheltenham or Gloucester please pop in and see myself or one of my team in offices in either Cheltenham or Gloucester for a chat or email direct for any opinion on neil.west@belvoirlettings.com

3 bed Town House Gloucester - 5.27% Yield

Just spotted this 3 bed town house, on the market with Andrews at £165k. This won't be around long and would make a great investment property as should let for around £725 PCM, giving a yield of 5.2%.

                          http://www.zoopla.co.uk/for-sale/details/34211398

Check out the link above for more details from Andrews. Please feel free to contact me for free advice on this or any other property.

One Bed Flat Cheltenham - 5.2 % Yield

This One bedroom Flat is on the market with Martin & Co for £120K. This should let for £525 PCM, giving a 5.2 yield. Good location to attract young professionals, working at GCHQ. These flats always let well and to great tenants.

                             http://www.zoopla.co.uk/for-sale/details/34168281

This what Martin & Co have to say:  Offered for sale with no onward chain Martin & Co are delighted to offer this modern first floor one double bedroom apartment situated on the popular estate within close proximity to GCHQ.
The property comprises; Entrance hall; open plan living/dining room and kitchen; double bedroom and bathroom with shower over the bath and benefits from gas central heating, double glazing throughout and an allocated parking space.
Situated ideally for access to Cheltenham, Gloucester and access to the M5 as well as being on good public transport routes.

I think that you should check out the details on the above link and contact me for advice on this or any other property.

Cheltenham and Gloucester Property market sees a 10% to 14% annual return

I was talking to an accountant from Cheltenham the other day following my recent articles about the Cheltenham and Gloucester property markets in my blog and newsletter. With all the news about house prices rising, he wanted to know what had happened to average property prices since the New Year. Well there is no such thing as an ‘average property’, but according to my calculations, the ‘average value of a property’ in Gloucester is now £202,800 which is a substantial rise from what I quoted 3 months ago of £192,200. In Cheltenham, price rises over the last few months have been a little more subdued and average values currently stand at £288,900.

Now by my calculations, the average rent being asked in Gloucester is £790 per month and £923 per month in Cheltenham, which means the yields/annual return are an impressive 4.6% per year in Gloucester whilst in Cheltenham, they are 3.8% per year. Looking at the recent Q2 2014 house price figures, in the last 12 months (July 13 to June 14), the average value of a property in Gloucester has risen by 10% and  6.85% n Cheltenham. This means Gloucester landlords have achieved a total return of 14.6% whilst Cheltenham landlords achieved a total return of 10.65%.

When comparing this to what you get in return from banks, buy to let could be good investment for you. Don't get me wrong, there are pitfalls. My message to all the people of Cheltenham and Gloucester, be you an existing landlord or you are thinking of dipping your toe in the water for the first time is quite simple - take some independent advice before buying anything, unless you're 100% sure of what you're doing. I say this because I know what happens when people don't.

Even if it's not from ourselves, there are still a few regulated 'lettings only' agents in Cheltenham and Gloucester who are well placed to advise on whether the property you're considering will rent, and at what potential price. I am certainly more than happy for you to pop in and see me at my offices in both Cheltenham and Gloucester for a chat.

Deerhurst Place - Quedgeley - 5.7 %

This 3 Bed terraced property came on the market yesterday with The Property Centre.  A 3 bed in Quedgeley will always let well and I would expect this property to let for £675 PCM. Purchase price of £140K give an impressive return of 5.7% 

                           http://www.zoopla.co.uk/for-sale/details/34139040

Go to the link above to check out what The Property Centre have to say and some more pictures. We could let this tomorrow if we had it and to good, professional families. Remember families, tend to stay longer and with a great return , this is worth viewing. 

Contact me for advice about this or any other property neil.west@belvoirlettings.com

Lloyd Close - Cheltenham 5.3 % Yield

On the market with Adams , 2 bed flat with parking. This has 2 double bedrooms which makes it great for couples and sharers alike. Very close to GCHQ so a good tenant demand here. It is on the market for £122500 and this will rent for £550 PCM , giving a yield of 5.3% . Don't forget those service charges though.

                              http://www.zoopla.co.uk/for-sale/details/34059963

Adams say:A modern, first floor two bedroom apartment. Available with no onward chain and in good order throughout, this spacious apartment offers a central hall, large living room, two double bedrooms, full bathroom and modern fitted kitchen. An excellent investment or first time buy opportunity.

I think this deserves further investigation. We let a lot of properties in this area and always popular. Do take those service charges in to account though, when doing your calculations. 

One bed House Quedgeley - Great Investment 5.4% Yield

This one bed terrace house in Quedgeley has just come on to the market with the Property Centre at £110k. This will let for £495 maybe even £525 on a good day ! Base your figures on £495.00 and thats a 5.4% yield. Perfect rental property and good to go. 

                                         

                             http://www.zoopla.co.uk/for-sale/details/34060378

The Property Centre say : Situated in the popular cul-de-sac of Tirley Close is this one bedroom terraced property which has been updated by the current owner. The property benefits from a refitted kitchen, white bathroom suite with shower, double glazing and good size enclosed rear garden plus off road parking.

I say that this would make the perfect investment for the first timer and should be looked into further. If you would like advise about this or any other property, please contact me.

Property market in St. Marks Cheltenham outperforms Leckhampton by 75%

I was recently chatting with a chap from Cheltenham, who lives in Leckhampton, he took me up on the offer of an informal chat about the Cheltenham property market and we were talking about buy to let in the town when the subject of yields and capital growth came up.I was able to tell the gentleman that the average property value of a Leckhampton property is £349,900 and the average rent is £1,024, giving a reasonable annual yield of 3.51%. However, it became interesting to compare the St. Mark’s housing estate where the average value of a three bed semi is £163,400 whilst the average rents for such semis are £839 per month, giving a very healthy yield of 6.16% a year, which is three quarters proportionally more than Leckhampton (or 75.4% to be precise).

However, like I said a few weeks ago, yields are not everything in property investment. Another is how the value of the property goes up over time. Better properties in better locations don’t have the best yields, but their property values tend to go up more quickly over the long term. Therefore, since 1999, the value of properties in the St. Marks area have risen by 149% on average, whilst average property values in Leckhampton have risen by an impressive 192% in the same time frame.

It just goes to show that you need to consider both capital growth and yield when in investing in property. If you look there are properties in Cheltenham that offer both decent capital growth and yields at the same time. As I don’t sell property, I can look at the whole of the Cheltenham market and give you my advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, please come and see me at our office in Bath Road in Cheltenham or Worcester Street in Gloucester 

Kerstin Close Cheltenham 4.9% Yield

I like the look of this 3 Bedroom link detached house in the Wymans Brook area of Cheltenham. We have recently let a couple of properties in the area and this should let for £795 PCM. The property is on the market with Peter Ball & Co for £195,000. Therefore you should see a yield of 4.9%.  That's a reasonable yield and don't forget that this sort of property will appeal to families who tend to stay longer which means fewer voids. 

                             http://www.zoopla.co.uk/for-sale/details/34023379

This is what Peter Ball have to say: Draft particulars (awaiting vendor approval). A three bedroom link detached family home situated at the end of a popular cul-de-sac and within close proximity to local amenities. The accommodation comprises an entrance hall with a door to the living room and stairs leading to the first floor. The living room measures at max 15'7 x 11'5 (max) and opens to the dining room which benefits from sliding patio doors to the rear garden. The modern kitchen consists of a range of wall and base level units, work surface over, ceramic sink/drainer inset, tiled splashbacks, extractor fan, space for appliances and doors to an understairs cupboard and to the side access. On the first floor are two double bedrooms, with the master including built-in cupboards, a well proportioned single bedroom and a modern bathroom comprising panel bath with shower over, pedestal wash basin, W.C and tiled surrounds. To the rear of the property is a low maintenance block paved garden with gated access to off road parking and a car port with a door leading to a workshop. To the front is a lawned garden with planted borders. The property further benefits from gas central heating and double glazing.

I say that you should not discount this type of property as a buy to let investment. OK you may get better monthly yields elsewhere but look at the bigger picture. Steady yield, few voids, appeals to good quality tenants, potential long term capital gain. If you would like more advise regarding buy to let investments in Cheltenham or Gloucester please contact me.