LETTING & ESTATE AGENT

Following the government’s update on 13th May 2020 regarding home moving in England during the Covid-19 outbreak, we are pleased to announce our branches in England will start re-opening their doors for booked appointments over the coming weeks. Health and safety remains our main priority, and a number of strict measures will be put in place to protect our staff and customers. Our offices in Scotland and Wales will continue to support customers from home. Visit our branch page to find contact details for your local office.

A good time to buy in Stoke on Trent or Newcastle under Lyme…………………?

A good time to buy in Stoke on Trent or Newcastle under Lyme…………………?

We get a lot of investors coming to both our Hanley and Newcastle offices to ask that very question and often that is how our relationship with our customers started.

Only this week a couple from Stafford came to discuss potentially investing in a property for Buy to Let. One of the most important considerations you will make before investing is the balance between annual return/yield and the annual increase/capital growth.  They couldn’t decide between modern developments in Trentham or Burslem and so we did a bit of research

Kennington Oval in Trentham is a sought after area to live on. The average semi-detached house sells around £167,384 and rents are roughly £935 per calendar month.

A similar sized semi-detached house on Ironstone Walk in Burslem can be bought for £187,444 and the achievable rents can be around £743 per calendar month.

The yield which could be achieved from property on Ironstone Walk is around 4.76% per year. When we compare this to the possible 6.70% on Kennington Oval, it is nearly 40% higher. However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. The average value of a semi-detached house on Ironstone Walk in 2006 was £184,950, which has since risen by 1.35%. A semi-detached house on Kennington Oval in 2006 was £165,000 meaning the value has increased by 1.44%.

Ultimately we have seen both estates to be equally good rental areas which attract families or professional couples.  Neither have shown much capital growth since 2006 which considering the property market between then and now isn’t surprising but both areas are popular with buyers and renters.