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