It’s a question I get asked every day. As a letting agent you would expect me to say an unequivocal ‘yes’. However, the answer I give is ‘it depends’. It depends on what you are looking for and what outcome you are looking for. So to help what’s been going on in the local market over the last few months.
* PE27, 28, 29 area has seen an increase in average monthly rental of 1.3% year on Year , compared with a reduction of 3.65% in the CB 1- 5 area
* The number of properties on the rental market has decreased. Longer tenancies are reducing the general churn of properties.
* The number of people looking to rent has increased
*The length of the average tenancy is increasing.
* The number of landlords looking to exit the market has reduced.
* Average 3 bed home is now £230,000 and although the capital growth has been minimal this year the market is strong and therefore predicted growth for 2018 is 3%.
Knowing that would you invest? The first thing you must remember is that investing in property is a long game. So if you are going for capital growth look to see what the areas could do. What plans are in place for developments? What amenities will be coming on board? All of these elements will increase the value of your investment.
So what about tenants? Over the last 10 years we have seen the tenure of rental in the privately rented sector increase from 9% to 15% with project growth to 25% within the next 9 years. When looking at rental returns a two bed cluster has increased by 25% over the last 12 years. As I said it’s a long game.
If you want to have a chat about what options there are for you just give us a call on 01480 494939.