Why should you consider getting into buy to let in Cheltenham

A recent article, when we spoke about the difference between Cheltenham and Gloucester property markets, produced a number emails and a couple of people popped by my offices for a chat about investing in buy to let.

Many people in our part of Gloucestershire, over the last few years, have seen the buy to let market become all about nest egg investment. It is fuelled by pitiful interest rates on building society savings. It reflects the fact that building society savings accounts are paying half a per cent interest and pension returns are struggling to match expectations, turning more and more people into landlords to secure their future.  So what can you expect from your rental property investment? In the short term, rental yields are important, and in Cheltenham, the average annual yield is in the order of 3.8% per year. However, that is based on averages, and as most landlords in Cheltenham tend to buy starter home homes, apartments and terraced houses, the majority of which are achieving 4.5% to 6.2% per year depending on location and price in the area.

In the long term though, the question of capital growth is as important, if not more important (because if you have great short term yields, but the value of the property doesn't keep up with the rest of the market, you will have an asset that in real terms is dropping). The average property value in Cheltenham currently stands at £303,800 and property values in Cheltenham have risen by 17.6% in the last 5 years. On the other hand, property investment is a long term game, so I wanted to share with you the research I did for a couple of Cheltenham landlords. Roll the clock back 10 years to 2004, the average value of a property in Cheltenham was £196,985. 15 years to 1999 makes interesting reading, as the average Cheltenham property value was only £101,112, 30 years makes it £31,809 and just for a bit of fun, we looked at 1974 at it was £12,010!

However, if one looks at say a 30 year investment period, if you had put £31,809 into the stock market in 1984 instead of buying a house in Cheltenham, your shares today would be worth £190,573. Put the same £31,809 money in a Building Society account and you reinvested the interest back into the account, and your Building Society passbook would have £177,357. Compare that with the property market in Cheltenham and the property would be worth £303,800 today (as mentioned above). Not bad until you realise that with the rental property you would have received in excess of £162,000 in rent over those 30 years, which wouldn’t have received with the Building Society account!

If you would like to discuss my thoughts on the rental markets in Cheltenham and Gloucester, feel free to pop into my offices in Cheltenham or Gloucester, or pick up the phone or email me on neil.west@belvoir.co.uk

2 Bed Semi - Cheltenham 5.2% Yield

This 2 bed Semi has come onto the market with RA Bennetts at £165,000. It is located in a popular area and should rent for around £725 PCM. It looks as if it is in tip top condition and ready to go. £725 PCM would give a yield of 5.2 % . Don't forget the potential capital gain also.

                             http://www.zoopla.co.uk/for-sale/details/34938547

Bennetts don't think that this will be around long and I tend to agree. If you would like any advise on this or any other property, please do contact me on neil.west@belvoir.co.uk

3 Bed Semi - Linden - 5.3%

This 3 Bed semi has just come on the market with Steve Gooch . Situated in Linden , this would let easily at £595.00 PCM, giving a yield of 5.3 % . Bathroom downstairs, will put some people off but dont let this deter you as will let relatively easily. 

                              http://www.zoopla.co.uk/for-sale/details/34920137

This is what Steeve Gooch has to say :This Extended Three Bedroom Semi Detached House Is Situated In The Popular Area Of Linden. Benefits include 16ft Lounge, Fitted Kitchen Units, Breakfast Room, Gas Fired Central Heating, Predominantly Upvc Double Glazed, Off Road Parking, Large Rear Garden and No Onward Chain the property details you are about to view are awaiting vendor approval and therefore may be subject to change.

If you would like advice about this or any other properties, please contact me on neil.west@belvoir.co.uk 

Gloucester vs Bristol property values – which City has performed the best?

One topic that I am always asked about, both by existing landlords and new ones, is how one city’s property values have performed against another. When purchasing a buy to let property, there are two ways landlords make money through property letting - capital growth and rental income growth.

When a property increases in value over time, it is known as 'capital growth'. Capital growth, also known as capital appreciation, has been strong in recent times in both Bristol and Gloucester, but the value of property does go up as well as down, and of course the local conditions surrounding your property have a big effect. Rental income is what the tenant pays you - hopefully this will grow over time too. If you divide the annual rent into the value (or purchase price) of the property, this is your yield, or annual return. 

A landlord from Stroud, who has a number of properties in both Gloucester and Bristol, asked me a few weeks ago about the difference between Gloucester and Bristol housing markets. I was quite surprised with my findings and wanted to share them with you.

The average property price in Gloucester is currently £201,800. In the last 12 months property values in Gloucester, according to my calculations, have risen by just over 9.5%. Yet roll the clock back a few years and in 2011 values dropped 4.4% from the property values being achieved in 2010. However, irrespective of the roller coaster prices we have seen in Gloucester, they are still 15.8% higher than the 2009 slump.

Property values in Bristol over the last 12 months have risen by 10.4% and over the last five years (2009) by 17.3% which, on the face of it, means that Bristol has performed better than Gloucester.  However, go back to the property boom of 2007 and property values in Bristol are only 2% higher than they were at the peak of the 2007 boom, the same percentage figure as Gloucester’s. (Although Cheltenham’s are 3.2% higher!)

Then there is the question of yield, as Bristol normally has higher yields than Gloucester, but Bristol’s rental market can be quite fraught with its stricter rules. Each Gloucester (and Bristol) landlord will have different needs and requirements in his or her property investment. Knowing what has happened to values in different towns, enables us to spot any trends or opportunities for buy to let landlords. If you would like to discuss my thoughts on the rental markets, feel free to pop through the door of our offices on Worcester Street in Gloucester or send me an email to neil.west@belvoir.co.uk

2 Bed Flat Lloyd Close - 5.8% Yield

This first floor apartment is on the market with Adams at £117,500. It will let for £575.00 PCM and that equates to a yield of 5.8%. There will be some service charges so these will need to be factored into your figures.

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

This is what Adams have to say: A modern, first floor two bedroom apartment. Available with no onward chain and in good decorative 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 buyer opportunity.

I agree that this could be a good investment opportunity. We let and manage a lot of flats on this development and they are always in demand, appealing to professionals who work locally. 

If you would like advice on this or any other property, please do contact me on neil.west@belvoir.co.uk 

Modern 2 bed Gloucester No Brainer 7.3% Yield

£87000 Guide Price - This has just come on the market- If you can get this at around £90K and let for at least £550 , that's a 7.3% Yield - NO BRAINER.!!!  OK, I think that this will probably go for more as has a garage, en suite and is low maintenance. 

                             http://www.zoopla.co.uk/for-sale/details/34869920

We have let a few on Tolsey Gardens and always popular. You must give this a look as that is a great yield on a modern property.

Call The Property Centre now and book your viewing - I can guarantee that this will go quickly , wish we were selling it!

2 Bed Flat Lansdown Cheltenham £700.00 PCM 4.9 %

I like the look of this 2 bed flat in Lansdown Road on the market with Elliot Oliver at £170,000. I think it should let for around £700 PCM giving a return of 4.9% . Great area , very close to the station and as as I say great layout. 

                               http://www.zoopla.co.uk/for-sale/details/34836432

Two double bedrooms so would appeal to sharers which makes the rent more affordable. If you would like advise about this or any other property, please do contact me on neil.west@belvoir.co.uk 

Cheltenham & Gloucester – Battle of the Postcodes

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  

4 Bed Semi - Great Family Let 4.8 % Yield

Remember what I said about 3 and 4 bed houses? They are in great demand and families tend to stay longer. Longer tenancies means less voids and repairs bills. This one is a 4 bed semi on the market with Taylors . Two receptions, family bathroom, downstairs WC and an en suite. I think this will let for around £825 PCM , maybe more, depending on what is around at the time. 

                            http://www.zoopla.co.uk/for-sale/details/34794221

If you are looking for a rental investment for the long term with a reasonable yield and potentially a good capital growth, this is the sort of property, you should be looking at. 

Please feel free to call me on 01242 221188 or email me on neil.west@belvoir.co.uk  for more advice.

Leckhampton – the place to buy a buy to let?

One of the final chunks of census data has recently been released by the Government, and for those of you who like to look at data, it is a treasure trove of information. Information is so important when making decisions on what (or not) to buy when investing in property. The census data allows anyone to look at the data for housing estates or areas, but even better down to individual roads. Such information allows us to weigh up potential hotspots in the rental market and show potential landlords where there could be an opportunity.

After discussions with a landlord who had been reading the Cheltenham and Gloucester Property Blog he took me up on the offer of popping into our offices on Bath Road in Cheltenham.  We got discussing the area of Leckhampton in Cheltenham and whether it made a good buy to let investment area.   After carrying out some research this is what I found out; there are 5,275 people living in 2,276 properties. It is the home ownership percentages that really got me interested, as it is this information, tied in with our intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties. In this area of Leckhampton of those 2,276 properties, 47.7% own their property without a mortgage (compared to the 32.1% Cheltenham average) and an additional 37.7% of households own their property with a mortgage (again the Cheltenham average is only slightly higher at 32.4% and that includes all the posh villages!). 

237 or 10.4% of households in Leckhampton are privately rented.  This is not due to a lack of demand by tenants but of a lack of supply, confirming that it is a very popular area with owner occupiers.  The average value of a property in Leckhampton at this moment in time is a rather high £381,800 with average rents at £901 per month.  This gives us an average yield of 2.83% which is not at all high when you consider that in the city centre yields of between 4% and  6% can be achieved.  It must however be noted that average values in Leckhampton have risen by approximately 85.2% since 2002, which is considerably higher than the Cheltenham average of 51.8% since 2002.  

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. If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices in either Cheltenham or Gloucester for a chat or email me direct on neil.west@belvoir.co.uk

Hopwood Grove , Cheltenham- 4.8% Yield

Take a look at this very well presented property in Hopwood Grove, Cheltenham. On the market with Cook Residential at £170,000 and should let for £675/ 695, which will give a yield of 4.8%. Ok , the yield is not spectacular but this will always let well with few void periods. 

                           http://www.zoopla.co.uk/for-sale/details/34725897

This is what the sales agent say : 

Offered For Sale With Onward Chain Complete

Two Generous Bedroom House

Both Bedrooms With Fitted Wardrobes

Enclosed Low Maintenance Rear Garden

Upstairs, Beautifully Presented Family Bathroom

Two Allocated Parking Spaces

I think its worth a look and if you would like any advice on this or any other property, please do contact me on neil.west@belvoir.co.uk 

Sycamore Close - Gloucester - 5.2 % Yield

This property has only come on to the market today with Farr & Farr. Great family rental opportunity in this popular area of Gloucester. on the market at  £149950 and should rent for around £650.00 PCM, that's a yield of 5.2 % 

                            http://www.zoopla.co.uk/for-sale/details/34693796

Farr & Farr say: An attractive semi detached family house with good proportions.

Sycamore Close is situated in a lovely quiet position overlooking a well tended area of green in this popular part of Gloucester. Good local schooling and shops are close by and Gloucester city centre is approximately a mile and a half to the north.

No.39 has been very well maintained and offers good light accommodation with the benefits of gas central heating and double glazing, good sized lounge / dining room and to the exterior attractive private gardens and garage.

Read more at http://www.zoopla.co.uk/for-sale/details/34693796

I really dont think that this will be on the market for long and if you are interested , please dont delay. If you would like any advice regarding this or any other property, please contact me on neil.west@belvoir.co.uk

What type of property in Gloucester sells the best?

Knowing how saleable a property is half the battle when deciding what (or not) to buy for your next property investment. Why?  Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to. Bearing this in mind, last week, a couple popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.

A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week, so the numbers will be marginally different today, but of the 46,444 households in Gloucester there are 1,831 properties on the market for sale. Of those 1,831 properties, 944 properties are fully available on the open market waiting for a buyer and 887 have buyers and are sold subject to contract. That means 48.4% of property on the market has a buyer in Gloucester (interestingly Cheltenham has 43.9% of properties on the market have a buyer – an almost identical figure to Gloucester’s and in Bristol of the 6,615 that are presently on the market, 55.6% or 3,683 are currently sold subject to contract). However, delve deeper, and in Gloucester today, 43.3% of detached houses on the market have a buyer and great news for terraced property owners, as 52.6% of them have buyers.  Semi-detached houses fair even better, with 251of the 439 on the market now having buyers (making 57.1%).  Bungalows do quite well with 51.2% or 62 of the 121 on the market in Gloucester having a buyer and sold subject to contract.  The properties that appear to be sticking though are apartments in Gloucester at a comparatively lower 31.4%.I am always giving advice to my existing and new landlords in Cheltenham and Gloucester (as I have offices in both towns) on what to buy (or not as the case may be).  Having this detail of information at my finger tips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don't charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on.  

2 Bed Terrace Hatherley - 4.7% Yield

This 2 Bed Terrace property has just come on to  the market with Adams. It looks well presented and is located in one of the most popular rental areas in Cheltenham . On the market for just short of £190K , I think it should let for £750.00 PCM. This will be popular with small families and should let easily , therefore minimal void periods. The yield would be around 4.7% which is not fantastic but this would be a relative "safe " investment. You need to think about capital growth as well and this should be relatively strong in such a popular area.

                             http://www.zoopla.co.uk/for-sale/details/34647780

Why not give Adams a call to take a look. If you would like advice re the rentals opportunities of this or any other property, please do not hesitate to contact me - neil.west@belvoir.co.uk

2 Bed Terrace , Gloucester 5.5 % Yield

2 bed terraced property on the market with Michael Tuck at just short of £120K. Great rental property in a very popular area of Quedgeley. This will rent for £550 , if not £575 ( in tip top condition) . Thats a 5.5% to 5.75 % yield. 

                             http://www.zoopla.co.uk/for-sale/details/34625309

This is what Michael Tuck have to say:Michael Tuck estate agents are pleased to offer for sale a terraced house located in a Cul-d-Sac location on Millers Dyke. Comprises entrance hall, kitchen, lounge diner, two bedrooms and bathroom. Further benefits include UPVC double glazing, gas radiator central heating and gardens. Although in need of general updating the property is sure to appeal to investors and first time buyers alike, so an early appointment to view comes highly recommended

I say, that if you are looking for a relative safe bet, then this should be looked at. If you would like any advice regarding this or any other property, then please contact me.

Matson property market outperforms Churchdown by 400%

 I was talking to a couple last week, who are considering becoming landlords for the first time after they had come into some money, knowing the return they would get investing in the Bank. They were looking for advice as to what kind of property they should buy but wanted some advice on what property to buy and in what location.

Their budget was in the £300,000 to £350,000 region, so I initially looked at semi detached houses in Churchdown. The average value of a three bed semi detached property in Churchdown area is £231,500. The three beds rent on average for £850 per month giving an annual yield of 4.4%.  This gave us some change and I then suggested they get a second property with the aid of a mortgage.  However, the couple were not interested in taking a mortgage (although it does give certain tax advantages to the landlords when you buy with a mortgage).  Therefore, I considered the Matson area on the South West side of Gloucester.   One bedroom maisonette apartments are worth on average £53,000 here and rent for around £425 per month, giving a much better yield of 17.6%, which is proportionally 400% more than Churchdown.

However, to judge a rental investment, you must consider the capital growth as well as the yield. Since late 2001/ early 2002, the average Matson property has only risen by 53.1% (interesting the cost of living/inflation has risen by 47.3% since late 2001/early 2002, so in REAL terms, property in Matson has hardly risen at all).  This is quite relevant when you consider overall Gloucester average property values have risen by 74.2% over the same time frame.  However, even better, semi-detached houses in Churchdown have risen impressively by 118.2% during this time. Ultimately, we found both areas to be a good investment depending on your own situation, but as you can see, Matson does offer better yields, but at the expense of the capital growth that Churchdown offers. 

If you are a landlord, new or old, we’re certainly more than happy for you to pop in and see us at our offices on Worcester Street for a chat or email me direct on neil.west@belvoirlettings.com

3 Bed Flat - £85K !!! Cheltenham 8.4 % Yield !!!

I looked at this and thought 3 bed Flat  £85K - Must be a mistake! This should rent for around £600.00 PCM as the sales agent say. That's a great return of 8.4%. On reading the advert again, I noticed that this was a GUIDE price and that the agents were carrying out open viewings. This suggests to me that this property will probably go for more than £85K. Saying that, its well worth a look as at £100k will still be a 7.2 Yield.

                             http://www.zoopla.co.uk/for-sale/details/31469490

The sales agent does not have a lot to say really , probably because they think that this will walk out of the door and they are probably right. Please contact me , if you would like any advice on the rental market in Cheltenham or Gloucester. 

Also just to let you know Belvoir are entering the sales market. However this does not mean that I will not be offering free unbiased advise on other agents properties exactly the same as I am now. 

One Bed - Gloucester 6.0% Yield

Great investment opportunity in Quedegley. Gloucester. On the market for £105K and should let for £525.00 PCM. One bed houses are always in great demand as rentals as don't come along very often. Loads of one bed flats but not houses. This makes this a great investment opportunity.   

                              http://www.zoopla.co.uk/for-sale/details/34549407

The Property Centre have this to say : Double bedroom terrace house offered 'For Sale' with no onward chain. Accommodation comprises to the ground floor lounge and kitchen, whilst upstairs are two bedrooms and family bathroom. Externally is an enclosed garden plus parking for two cars. Ideal first time / investment purchase. Rental income in the region of £500-525pcm. Rental yield of approximately 6% based on £525pcm.( Think they mean one bedroom not two) 

I do agree with their rental projection and think that this is worth looking into further. If you would like any advice on this or any other property, then please do contact me on neil.west@belvoirletting.com or 01452 387334.

One Bed Flat - Cheltenham - 5.7 % Yield

I have just seen this well presented flat on the market with The Property Centre, on the market for £120K and should rent for around £575 PCM. Looks great, allocated parking and a popular area. This should give you a yield of around 5.7%. As with all leasehold properties, you need to check out the term of the lease and the management charges. 

                              http://www.zoopla.co.uk/for-sale/details/34489629

This is what The Property Centre have to say: Potential Rental Income Of £575 pcm. A ground floor apartment located in the popular area of Battledown Estate. An ideal investment or first time purchase benefiting from allocated car parking. The accommodation comprises open plan living room, fitted kitchen, bedroom and bathroom.

I think that this is worth checking out and if you need any advise regarding this or any other property, then please contact me at  neil.west@belvoirlettings.com

3 Bed Semi Detached - Quedgeley 5.2 % Yield

This 3 bed semi on the market with The Property Centre would make a great investment. On the market for £155,000 and should let for £675 PCM, that's a yield of 5.2%

                             http://www.zoopla.co.uk/for-sale/details/34490371

The Property Centre say :The Property Centre are pleased to offer 'For Sale' this three bedroom semi-detached House in Downy Close. Accommodation comprises to the ground floor a 16'8 lounge and kitchen / breakfast room, whilst upstairs are the three bedrooms plus a family bathroom. Externally is an enclosed garden to rear and off road parking to the front.

I think that this is an ideal investment as the property will appeal to families and will always be in demand.

I have been away for a while but now I am back. If you would like any advice on this or any other property, then please contact me at neil.west@belvoirlettings.com

Cheltenham vs Gloucester.. the tale of two very different property markets

I was talking to one of my landlords from Stroud the other week, when we were looking over a few properties that he was considering to buy in Cheltenham or Gloucester. As we have offices in both places, I was able to discuss the two areas in depth. We started to notice an interesting pattern in the house prices between the two. Cheltenham has always been a more expensive town to buy in comparison to Gloucester, but depending on what type of property you buy, there are some fascinating differences.

A few weeks ago, we said that the average value of a property in Gloucester was £204,000, compared to Cheltenham ‘s of £297,900 (making Cheltenham 46% higher). However, when you look deeper, things become quite interesting between the two places. Detached houses in Cheltenham are 42% higher than Gloucester’s (£471,800 to £310,600) ,flats are even higher being 55% more expensive in Cheltenham than they are in Gloucester (£184,100 to £118,400), terraced houses are even more expensive in Cheltenham having and average value of £235,700 compared to Gloucester’s £143,700, making Cheltenham’s terraced houses on average 63% more expensive.  Finally, semi-detached houses are 44% more expensive in Cheltenham compared to Gloucester (£271,100 to £187,100).

So if you look at the individual property types (i.e. detached, semi-detached, terraced and flats) the one thing which struck me was that whilst overall the average property in Cheltenham is 46% more expensive that Gloucester in some types, including terraced and flats, they are considerably more at 50 to 60%  more expensive.  Well after investigating, it transpires that in Gloucester there are 20.2% proportionally more detached houses than Cheltenham and 21.3% more semi-detached houses. However, on the other side of the coin, Cheltenham has proportionally 59% more flats and apartments compared to Gloucester.

As Gloucester has a lot more expensive detached and semi-detached houses and a shortage of apartments, this means the overall average property price is driven up in Gloucester over Cheltenham. These differing housing provisions in the two places just goes to show that you need to know your marketplace and decide which is the right place for your money. If you are an existing landlord or one who is thinking of become one in Cheltenham and Gloucester, don’t hesitate to pop by our offices on either Cheltenham  or Gloucester or send me an email to neil.west@belvoirlettings.com  

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.