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.

Whittington v Leyfields - Which offers the best returns for landlords

Whittington v Leyfields - Which offers the best returns for landlords

This week we had a potential landlord come in to see us as they were looking to acquire their first buy-to-let property.

Being from Whittington, they were keen to buy a property that was close to home. This way, they could keep an eye on their investment. A lot of landlords do the same. He wanted to know if this was wise and asked about other areas.  I did some research for him and gave him an example to compare against.

We also discussed the pros of buying a two bed rather than a 3 or 4 bedroom house. With this in mind, I obtained figures showing the average asking price for 2 bed semi-detached house as being £193,299 over the last 12 months. When comparing the average rent for the same type of properties, this came out at £657 per month.

Using these figures, this gave a gross yield return of 4.08%, which is not great (especially when compared to most savings accounts).

Afterwards, using the same criteria for 2 bed semis in the Leyfields, this gave an average asking price of £131,590 and an average rent of £588 per month. This offers an average gross yield of 5.36%. In comparison, this suggests that properties in the Leyfields achieved 31% higher returns compared to Whittington.

The higher asking prices in Whittington are to be expected as it is a highly desirable village, with two pubs, a local co-op and rural surroundings. However, the rents in Whittington have not kept up with the higher sales prices.

Also worth considering is the average £61,706 saving when comparing the purchase prices between the two areas. He agreed that it has given him some food for thought.