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Your best options in the lettings market
| Author: Craig Bees | Published: 20th August 2019 09:03 |
Your best options in the lettings market
With rents increasing by 1.3% on an annual basis in May, it’s clear that there’s plenty of room for solid returns in the lettings market. If you are thinking of investing in a rental property or you are a portfolio landlord looking to increase your selection of properties, then a key factor will be the potential yield that the property could return.
Have a look at our breakdown of properties and potential rental yields and if you need any further advice please contact us.
In terms of rental yields, Houses of Multiple Occupancy (or HMOs) are becoming ever more popular as investment properties and widely viewed as the future of the rental market. HMOs were in previous years solely a staple of the student lettings market; however, this is now changing, and young professionals are now part of a growing tenant population favouring this rental configuration.
And for landlords, the mathematics is simple; multiple tenancies operating independently in one property increases rental yield significantly and means that void periods are far less of a problem.
According to the National Landlords Association, average rental yields sit at 6.9% for HMOs, some 1.3% higher than other properties. However, there are other considerations if you are thinking of buying a property with a view to let it out to multiple independent occupants; bedroom sizes must be at least 6.51 square metres and some HMOs will require a license, obtainable from the local council.
Properties in city centres are proving to be extremely popular and demand is rife for centrally located homes on the rental market. With that in mind, purchasing a flat or apartment could prove to be a shrewd move if you are looking to maximise your rental yield potential; with competition amongst renters keeping the prices of well-located properties high and avoiding those dreaded void periods of non-occupancy.
Houses with two bedrooms or more are by far and away the most popular choice amongst renters, whether they are detached, semi-detached or terraced. With the average age of the first-time buyer now at 30, more and more families are renting up until this point, so multiple bedrooms are a must. Appealing to this family and young professional market will help you to achieve your desired rental values and could potentially secure you longer tenancies with tenants willing to sign up to three-year contracts.
Fundamentally, there is no one single property which is guaranteed to give you a specific rental yield. Investing in property remains one of the most stable investment classes, and despite periods of ups and downs, in the long term it is difficult to find a more lucrative venture.
If you would like to discuss your rental investment options, then please feel free to contact us at our Towcester Town Hall offices and we can advise you of the best local areas to invest your money in, as well as which property types and audiences are likely to provide you with the best possible rental yield.
We look forward to seeing you.
Diary date: Badby & Farthingstone Cricket Club’s open day on Sunday Sept 8 (1pm start) - bbq, refreshments, raffle and cricket. Guaranteed to be a great afternoon out, hope to see you there.
Monthly draw: still time to make August your month to win a case of Italian wines (red/whites/mixed) or get one month’s membership to Whittlebury Hall Leisure Club.
How To Enter: every valuation and instruction for sale or rental between now and next Wednesday (August 28) will be entered into the draw, the winners being notified by e-mail.
If you’re thinking of selling or letting your property and want to win one of these great prizes on offer call (01327) 359164 and speak to our sales or lettings team.
Until next time.
Craig Bees, MD Bartram & Co
E-mail me at craigbees@bartramandco.co.uk
Visit our website www.bartramandco.co.uk and follow us on Twitter@bartramandcotow
Tel: (01327) 359164
Fax: (01327) 359166
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