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.