These two historic market towns sit in close proximity to one another but how do they differ in t...
These two historic market towns sit in close proximity to one another but how do they differ in terms of buy-to-let rental potential?
To answer this question it makes sense to put oneself in the shoes of a would-be tenant. It really boils down to geography and infrastructure: the overriding factor being access to their place of work if we are considering working tenants. A property in the countryside miles from anywhere may sound an ideal location to get away from it all but is not really practical for getting around.
In terms of transport access we will look at how accessible both towns are. Sandbach is conveniently placed for the M6 motorway, just off Junction 17. It also has a railway station with the Crewe to Manchester line passing through. Access to the larger conurbations of the North West are therefore easily commutable. Congleton on the other hand also has a railway station and major trunk roads running through it. You could argue that it is not as near the motorway but the proposed relief road could really improve the traffic flow in and around the town.
Local employment is also a key factor influencing why people choose a certain area over another. Congleton Business Park is host to numerous top-performing companies, notably Tesco, Airbags, Marks & Spencer as well as various niche IT and finance businesses. Cheshire East Council is a key employer in Sandbach with its headquarters being at Westfields. Both towns have light industrial units operating in and around the town centres.
The variety of shops plays a part in affecting house prices in an area. The average current house price in Congleton is £208,089 and in Sandbach it is £208,413.
From last year house prices have increased by 4.59% in Congleton and 5.86% in Sandbach*. So not much difference in the current value but a significant difference in the rate of increase. Some commentators say that the introduction of an up-market supermarket can positively affect house prices in the locality. Sandbach property owners could have a lot to thank Waitrose for!
In summary both towns are sound investment locations in their own right; it really depends what you’re looking to get out of your investment and, particularly, what type of tenant you’re aiming to appeal to. Do you want professional, retired or DSS applicants for instance? Each town has its mix of residential housing stock to suit each category of tenant. We firmly believe at Belvoir that it’s about matching the right property to the right tenant and for the right reason for our client.
It’s about adopting a holistic approach to buy-to-let investment.