I was asked last week if postcodes make a difference to
property values. Well in swanky West London ,
the difference between SW3 and SW10 can make values drop or rise by thousands,
even millions of pounds. However, in Cheltenham and Gloucester , we don’t have many Russian
Oligarchs and Saudi Prince’s buying our properties. However, after doing some
investigating, I did find out some interesting info.
The main postcode areas of Gloucester
are GL1, GL2 and GL3 with Cheltenham ’s main
postcode areas being GL51, GL52 and GL53. The postcode with the best performing
housing market over the last 12 months has been the GL52 postcode with the area
to the East of Cheltenham going North, passing the Racecourse onto Bishop’s
Cleeve with average values rising by 6.7%%. However, in a very close second and
third come GL2 and GL3 with rises of 5.46% and 5.21% respectively in the same
12 month period with GL1 and GL51 seeing more modest, yet healthy rises of
4.49% and 4.4% - whilst the worst performing area is GL53 with a rise of only
2.74% in the last 12 months. Over the last 5 years, values in all of the six
postcode areas have been much tighter with the best performing areas being GL1
and GL3 at 14.2%, all the other postcodes come in between 13.3% and 13.8%. I think you would agree that this is a much
closer spread than short term gains over the last 12 months.
However, property values are only half the story when it
comes to property investment. The average yields tell a slightly different
story. The best performing postcodes for yields are the respective town centres
of GL1 in Gloucester
at 6.74% and GL51 Cheltenham’s town centre at 6.4%. Then there is a second tier of yields with
GL52, GL2 and GL3 having respective yields of 4.6%, 4.5% and 4.3% per
year. However, it is of no surprise that
GL53, with its’ rural nature has low yields of only 3.1% per year.
Therefore, if you are considering buying a property for
investment in the near future I am always happy to give you my considered
opinion on which property to buy (or not as the case may be) to give you what
you want from your investment (yield, capital growth or a bit of both). If you
are a landlord, new or old, pop in and see us at our office's in either
Cheltenham or Gloucester
for a chat or email me direct on neil.west@belvoir.co.uk
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