A landlord I know has owned a few properties on St Michaels Road for the last fifteen years. She came in to our office to discuss the rise and fall of property prices on the street and how this has affected her yield over the years.
Of the 173 homes on St Michaels Road, 150 are flats (including apartments and maisonettes). Some of these properties are relatively old, as at least 11 of them were built 113 years ago in 1900. Properties on St Michaels Road are, on average, worth £159,779, which makes it one of the least expensive places to live in MK40 Bedford, where the average house price is £179,006. This price is derived from the free automated valuation estimates provided on the Mouseprice website. These automated valuations are known in the mortgage lending industry as AVMs. There is reasonable AVM coverage for Bedford MK40. The property valuation estimates are supported by the 104 transactions which have been recorded in St Michaels Road by HM Land Registry since 1/01/1995.
In 1998, when she purchased her first property on St Michaels’ Road, the value of this flat on the street was £47,500 which had a sharp rise in value to £112,000 by 2003, and then in 2004 it was £140,000.
By 2011 this was £142,000, and currently the average value of the same style property is £155,163
When she told me of the rents she had achieved on the street, they seem fairly stable over the years; however since the changes in the housing market the demand for rental property has been high so rents have increased. With the rent now between £600 and £700 per calendar month, dependant on the property’s accommodation. Therefore, a landlord could expect a reasonable annual yield of around 5.4% on St Michaels Road at the moment.
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