Gloucester Apartments - 1 beds or 2 beds ?

Last week, I spoke to one of my landlords and she asked me if the number of bedrooms in a property had any relationship to the return she could get. I did some research and followed up her query – I was actually quite surprised with the results.

Currently in Gloucester, the average rent for a one bed property is around £426 per month with an average value of £80,300. This means an approximate return/yield of 6.36% per year. This is of course the average. There are one bed apartments on the market for rent at a higher price than some two bed apartments. In fact, some one bed apartments in Gloucester can attract rents in the early  £700's whilst some converted terraced houses with flats in them can be rented for as little as £300 per month. This means yields on one beds can range between 5% and 7%.

Two bed apartments in Gloucester can be priced anywhere between £190,000 in modern upmarket developments in the Gloucester Docks area and as low as £70,000. Again, rents can be quite varied, ranging from over £800 per month to £400 per month. However, looking at the average rent for a two bed apartment in Gloucester, I calculate it to be £573 per month with the average value being £118,700 which gives a return/yield of 5.79% per year.

Whilst there is a little difference in the yields when it comes to the number of bedrooms, it is only one of many factors you should consider before buying a property. Whilst two bedrooms are more expensive to buy, they will always let better. Do they sell better? Well, 38.3% of the two bed apartments on the market in Gloucester at this moment in time are sold stc compared to 34.7% of 1 bed apartments – so the answer is yes, but not much difference though.

It really comes down to the property and type of tenant. Two beds attract sharers, which brings both advantages and disadvantages to the landlord but one beds have better yields. It depends what you want from your investment. I know the lettings market in Gloucester so I can advise you what you can expect to achieve in rent .I don't make a penny out of you buying something from another agent, I make my money ensuring I can find the best tenants for the best properties. If you would like any advice on choosing properties, come and see us at our office on Worcester Street, Gloucester.