............Investing Near Loughborough Railway Station Over the past few months we have noticed...
............Investing Near Loughborough Railway Station
Over the past few months we have noticed, amongst applicants for some of our rental properties, that there appears to be more and more people renting in Loughborough who work outside of the town. The Railway Station offers easy access to local cities such as Derby, Leicester and Nottingham and commuters can even reach London in just over an hour. With a rise in tenants commuting, we thought we would take a look at the streets around the station to see if this area would be a good place for potential investors to purchase a buy-to-let property to capitalise on this.
We looked at the areas around Belton Road, Meadow Lane and Nottingham Road encompassing streets such as Burder Street and Ratcliffe Road. From our research, the majority of properties in this location tend to be two or three bedroom terraced houses, most with two reception rooms. On average over the past 18 months according to the Land Registry Office, two bedroom terraced houses can usually be purchased for between £100,000-£110,000 and on average rent for between £475-£525pcm. This gives a rental yield of between 5.2% and 6.3%. If you look at the three bedroom terraced properties, these tend to sell for between £115,000-£130,000 and the average rent per calendar month is between £525-£600, giving a yield of 4.8%-6.3%. In addition rental values around this location have increased by approximately 6-7% over that last 2 years and are forecast to continue rising.
Generally speaking for a buy-to-let property, a rental yield of over 5% is seen as a good investment and anything over 6% is deemed to be an excellent purchase. The age and style of these properties mean that the rooms are commonly quite spacious and therefore are generally an attractive proposition for prospective tenants. Furthermore, a recent study showed that 31% of the adult population of the UK are now renting either privately or through an agent and with that number increasing year by year, rental prices are also increasing meaning that now could be the perfect time for an investment.
If you would like to talk to one of our buy-to-let experts about investment opportunities, or are looking to sell or rent your property then call us now on 01509 260777 for free and friendly advice.