A landlord I know
has owned a few properties on the Ashenden Road for the last sixteen years because
they are situated in close proximity to the University for students, the Surrey
Research Park for professional workers and within a relatively short distance
of both the A3 and the town centre plus the local 24/7 Tesco supermarket.
We
met up the other day to discuss the rise and fall of property prices on the
street and how this has affected their yield over the years.
In 1999, when they
purchased their first property on Ashenden Road, the average value of a 3 bed semi-detached
house on the street was £104,900 which then rose sharply to £279,900 by the
year 2007. This rise in value continued, with average value being £357,900 in
2007 and £384,900 in 2014 (having recovered from the fall in prices after the
financial crunch).
At the height of
the property boom, a semi-detached house on Ashenden Road had an average value
of £390,100. This value has since dropped fractionally in the first quarter of
2015 to £386,100 while the market has slowed in the period leading up to the
General Election. Forecasts are now suggesting that prices will start to rise again now the Election is over.
When they told me of
the rents they had achieved on the street, they have steadily risen too, over the last
sixteen years. In 2002-2003 the average rent was £1,200 per month and has
nearly doubled to between £2,250 and £2,490, dependant on the number of
bedrooms in the property. Some properties have 3 beds and some have 4 beds depending upon whether they have been extended.
Therefore, a
landlord could now expect a respectable annual yield of around 7.4% on Ashenden
Road plus the nearby streets, Beech
Grove and Cherry Tree Avenue. This figure is favourable when compared to similar properties
in other streets within the North Guildford area.
If you would like any
advice on areas in which to make your potential investment, please do not
hesitate to call for a chat 01483 320207.
No comments:
Post a Comment
If you would like to receive a property valuation on your house please enter your contact details here.