A landlord I was talking to recently, missed his chance to buy a two bed terraced house on Upper Bridge Road, near Moulsham Street in Chelmsford, as it sold in a matter of days. He asked me if there something special about the area, so I did a little research...
...I have included surrounding roads such as New Writtle Street, Lower Anchor Street & Seymour Street in my findings to give more of an idea about this particular area as they are similar styles of property, being period terrace houses and maisonettes.
A number of two bedroom terraced houses have sold in this area for around £240,714 in the last year. These types of properties are very popular in the rental market and generally rent on average for around £956 per month, which would provide a reasonable annual yield of around 4.7%.
The three bedroom terraced properties in the Upper Bridge Road area which have been selling on average for, £257,330 in the last year, will rent on average for around £1100 pcm, which would give you a yield of approximately 5%. Again, these houses are very popular as they offer decent room sizes and generally attract a longer term tenant, appealing to more of the family market.
The other type of property in this area, which generates the most impressive returns, is the 2 bed maisonette. This area has several properties, which may at one point in history have been one dwelling, but have been split into half to make 2 bedroom maisonettes, These are the most popular types of property in this area as the prices are generally a bit lower and therefore more affordable. The average selling price for these properties in the Upper Bridge Road area in the last year is around £168,000, which when you look at the average rental price of £825 pcm, provides the best yields of around 5.38% per year
Even though the 2 bedroom houses in the Upper Bridge Road area don’t offer the best yields in comparison to the other types of property in this location, don’t be discouraged. When we look at the capital growth of these types of property, there is a different story. In the last 10 years, 2 bedroom terrace houses have increased in value by 33%.
If you would like to talk to me about property, feel free to pop into our office on Duke Street.