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One bedroom flats in Uxbridge, are they a good investment?

I have been talking over the property market with a number of landlords and people have been asking whether one beds are still a good investment, especially given the price rises we have seen over the last couple of years.

I have been talking over the property market with a number of landlords and people have been asking whether one beds are still a good investment, especially given the price rises we have seen over the last couple of years.

There are over 4,900 flats in the Uxbridge area. This represents around 35% of the housing stock here, with the national average being nearer 17.5%. So flats are an important and popular housing option in Uxbridge. The average one bedroom is marketed at the moment for £230,000 and £307,500 for a two bedroom.  The prices have increased by over 10% in the last year which comes as no surprise when stock is limited.  At the time of writing there are only 17 one and two bedroom flats for sale on Rightmove, which is only 0.3% of the housing stock.  So people are holding onto the property they own in the area.

You can buy a one bedroom flat in the Manor Waye less than half a mile from Uxbridge for around £230,000. If a landlord put down a £57,500 deposit and borrowed the rest, they could achieve around £900 per month in rent. This would generate a gross yield of 4.7%.  A higher deposit would reduce exposure so it is essential to research your investment carefully before committing.  The last thing you want to be doing is to be short of funds and forced to sell if they market drops.

A large part of the investment returns for landlords in the South East and London is capital growth.  For example a one bedroom flat in Clarkes Drive was purchased in December 2000 for £76,000, by 2005 they had risen to £128,000 and £145,000 by 2010 (stuttering over 2007/8) and have sold for £171,500 in Dec 2014.  Given that Hillingdon is one of the fastest price rise boroughs in London and therefore the UK we may well see future good increases in value. 

If you would like some advice about what could make a good investment, please visit our office on 113 Hillingdon Hill, Uxbridge, Middlesex.

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