Last week a landlord who lives in South Somerset came to our office to discuss the rising property values in the A30 corridor. He owns a varied portfolio of rental properties, primarily in Yeovil and Crewkerne, with one also in Chard, so it is interesting to compare the increase in property values around the area.
Over the last 12 months in Yeovil throughout 2013/2014 average property values have risen from £197,550 to £207,500, a rise of just under £10,000 or £192 per week. When I looked at some of the surrounding areas, Crewkerne has had an average increase in property values at around £153 per week, whilst Chard has a similar modest rise of an average increase of £141 per week. It is, nonetheless, a rise in all the towns’ average property values which suggests the market is recovering steadily in our area – good news for home owners and landlords alike.
When considering this landlord’s buy to let portfolio, yields can be in the order of 4% to 5% per year, depending where you buy, so combine that with steady rental growth and excellent increases in capital values of the properties themselves, it could be a good time to invest in the property market in Yeovil or Crewkerne as property values start to rise. If you would like some advice about buying to let, whether you are a landlord with a portfolio or someone thinking of investing in the rental market, please come and see me at our office in Princes Street, just around the corner from Tescos in Yeovil or call us on 01935 420555.