- They desperately need 3 and 4 bed houses
- Good decent accommodation
- Close to a good school/transport links/amenities
- A trustworthy landlord or agent
Some local facts:
- A standard 2-bed terrace fetches on average £400-£450pcm. You can buy one for £50-75K. Typical gross rental yields 6-10% for unfurnished houses. 10-12% for houses in multiple occupancies or student lets which are furnished with bills included. However, the market is now inundated with furnished room lets. Our opinion is that the apparent high yields are not so high when void periods are factored in. Rooms are now sitting empty for a few weeks when 5 years ago there were virtually no void periods.
- Capital growth has been slow the last 10 years. House prices doubled from 2000 – 2004 but since the recession hit in early 2008, capital growth has been slow. From October 2016 to July 2017, prices rose by 0.35% only according to the Land Registry data. The heady days of buying, re-mortgaging in 2 years to release equity to buy another house are over. The housing market in Stoke-on-Trent for the next 5 years will likely remain slow on the capital growth front.
- Good rental income can be lost to high repair and maintenance costs that plague the aging housing stock. A high proportion of the housing stock are Victorian terraces built for the potbank workers in the late 1890s. These houses are almost 130 years old. So beware of rising damp, leaking roofs, single glazing, no central heating etc.
Look at the Belvoir Rental Index available here
If and when you come to visit Stoke-on-Trent, do come to visit us, so we can discuss further. We have pay and display parking outside our office and tea and biscuits inside! Our office is just up from the Potteries Museum, on 8 Albion Street, postcode for satnav ST1 1QH.
Want to expand your portfolio?
As buy-to-let specialists, we can put you in contact with our trusted mortgage advisers or wealth management advisers St James Place, who can help you plan your expansion. Whether to release equity, pension planning, investment planning or so on, our financial adviser friends will be able to guide you through the process.
*Belvoir Stoke on Trent are not financial advisers or wealth managers. The value of property investments can go up or down with time. You should always seek professional legal and financial advice before buying a property.