This blog follows the buy-to-let market in Ilkeston, Eastwood, Heanor and Belper. You'll find properties on here that may make decent investments. You'll also find tips, guidance, and analysis that relates specifically to these two towns. I operate Spruce Tree Lettings, opened since 2009, in all these towns, so if you're thinking of buying a property to let in either Ilkeston, Eastwood, Heanor or Belper, I'm happy to offer a second opinion.
Here at Spruce Tree Lettings, we can guide you to the right
places to identify property values and yields in Eastwood and other useful
property related information so you can make sure you get all the information
you need about your future investments. Here are just a few property facts
about our town of Eastwood....and the surrounding areas, including Kimberley,
Nuthall, Underwood and Selston.
There are 146 streets in Eastwood and 959 streets in the
total NG16 postcode area with just over an eighth of all those houses (3,782 to
be precise) having changed hands since 2010. In those 5 years average house
prices in the Eastwood area have risen by some 8%, and by nearly 2% over the
last 12 months, and currently stand at around £148,000.
Most investors tend to buy semis, terraced houses or flats –
so looking at the average values for these we see they stand at around £120,000;
£90,000 and £105,000 respectively, still below the stamp duty threshold – so
plenty of scope for good value investment in the area.
Compared to the national average - Eastwood has 76% more
detached houses, 22% more semi detached houses, 25% less terraced houses and 93%
less flats. This is a good indicator that Eastwood and the surrounding NG16
postcode area is a good place to buy property in.
If you would like more useful facts and figures send me an
email or pop in to see us at our offices.
Just on with Whitegates this 2 bed end of terraced property is already a rental property - and looks very clean and tidy to boot. With an asking price of a little under £80,000 and rentals in the region of £475 this makes a good rental yield of over 7%.
A local landlord became interested in the Belper’s Buy to
Let market, in particular the growth in capital values some of which he had
witnessed first hand, after reading our articles about various areas of Belper,
so decided to call us and ask our advice.
Having had a look at some recent examples of high growth
properties I found that a small two bedroom end-of-terrace property on Belper Road,
Bargate, was bought for £80,000 in 2011. The same property sold for £140,000 in
December last year, which is a rise of 75%! However, prices in the town during
this same time period rose only by around 11%, so it should have sold for £90,000
if it kept up with the local average house price changes, so it looks like it
needed work when originally bought in 2011 – and that work has paid off
A two bedroom detached bungalow on Ryknield Road in Kilburn
sold for £190,000 in 2013, and was sold again this year for £239,000. This is a
rather impressive rise of 26%, especially considering, average prices in this
time have risen by a much less remarkable 9% in the area.
Onethat also caught
the eye was another two bedroom link-detached bungalow on Old Road in Heage sold
for £125,000 in 2013, and was sold again this year for £168,000. This is an
even more impressive rise of 35%!
Having a look at this one in a little more detail we can see
that a program of refurbishment has taken place – just look at these before and
And after the refurbishment:
Interestingly one thing the then owners did was to turn the
property from a 3 bed to a 2 bed – and make way for a kitchen diner – rather
than just a small kitchen – which is a much more modern, and appealing, way of
living. Definitely a case of “less is more” here!
With rents for these types of bungalows in these areas
achieving between £500 and £650 per month, these properties would now yield
around 4-5%. I think in terms of a rental investment, there are better
properties than bungalows, such as smaller two or three bedroom semis, but for
owner occupation there are some bargains.
Our interest and passion lies firmly within the residential
property market, so please feel free to talk to us at any point about our
This 2 bed starter-home caught my eye as it has been reduced last week - and even at the asking price of £80,000 would produce a rental yield of over 7% - but there may be a little more room for negotiation with the vendor?
The internals seem in good condition, and the décor is fairly neutral, kitchen functional and the the shower-room is fine for a house of this type.
As you know I like to keep an eye on the changing local
property markets so when a landlord with a small property portfolio came into
our office last week, it gave me the chance to catch up on some analysis. He
lives between Ripley and Ilkeston, in Heanor, and has properties in both towns.
He wanted to ask our opinion on where he should his next Buy to Let property.
Looking at Ripley, the average property price can be a
healthy £143,500 and the average rent is £445 per month. In Ilkeston, an
average property is a lower £136,000 and the average rent is a more impressive £550
per month. The annual yield in Ripley could be only 3.7% per year, compared to Ilkeston
where he could achieve an annual yield of nearer 4.9%! On the face of it much
this is a higher yield – 32% higher in fact!
It made me consider two other towns close by, either side of
Ilkeston; Long Eaton and Heanor. In Long Eaton, I was surprised to find
property values are higher than in Ilkeston, but similar to Ripley, with an
average property price of £141,000. They have an average rent of £495 per
month, which could achieve a yield of 4.2%. The average price of a property in
Heanor is £131,500, which is the lowest of the four towns, with rents of around
£470 per month. This would mean an average rental yield of 4.3% per year.
It goes to show our towns of Ilkeston and Heanor can be a
good area for an investment property, where absolute property prices are
relatively low, and yields strong, but it is a decision that shouldn't be taken
lightly as it is important to remember that these are only averages, so the yields for some
small to medium sized properties in popular areas of Ilkeston can achieve
yields of up to 9% or more per year. If you want to know our thoughts on
property in Ilkeston or any of these towns, then come into our office.
Well in the current market, what with property values on the march it is nice to see some properties are on at a reasonable level - such as this 3 bed semi on Milford Drive, Shipley View, ILKESTON - a modern property asking for offers around £127,500 - and renting out in the early £600s this should see a yield of around 6%, with good demand and strong capital growth.
On the recent theme of newish apartments - this two bed
ground floor one in Ilkeston has caught my eye as it has just been reduced to
"offers" over £75,000...and they generally sell north of £80,000 at
If you can haggle a bit - you could be onto a bargain...it
may need a little refresh - maybe a lick of paint and perhaps some carpets -
but certainly one to have a look at. Rents are c£425-£450 per month giving a
healthy 7% or so yield.
Make sure you check the lease details and all the fine print
- but if all that is good then these are readily rentable.
Oh and just before I go I had a call from a local investor who
sent me a couple of Zoopla links to properties she is considering buying – one from
Burchell Edwards and one from Whitegates. I figured that the first was little
bit “toppy” ie was too expensive and to take care, but the second would be a
bargain at a few £k off….so told her to put an offer in and see how she went.
If you have any properties you are considering buying – then
give me a call or drop me an email at firstname.lastname@example.org
and I will give you my view.
Even with the General Election, property values in Eastwood
are still 0.76% higher than they were 3
months ago, the diversion and ambiguity of an election typically makes house
sellers who need to sell, price their property more realistically (although
this only lasts a couple of months). Looking specifically at it from an Eastwood
landlord’s point of view, the Eastwood properties favoured by investors are in
short supply in many parts of the town because of a number of factors. One of
the factors has been that we have seen the number of first time buyers coming
to buy their first home increase over the last 12 months in Eastwood.Another factor has been the fact that the
banks have been pushing ‘let to buy’ (where home owners change their mortgage
so they can rent out there property and buy elsewhere) to homeowners. Next,
because of the banks, who are chasing low risk landlords with high deposits
with very low mortgage rates - and the low risk landlords with high deposits
tend to be attracted to the safer modern two and three bed town houses and semis
As I mentioned a few weeks back, the pension rules are
changing which means buy to let landlords can use some, or all, of their
pension pot to buy a property.It
shouldn’t be forgotten there are tax implications taking more than a quarter of
your pension pot out (see the article from a couple of weeks ago), so whilst
many pension pots may not be able fund a suitably big enough tax free lump sum
to buy the property outright, for most it will provide enough for the 25%
deposit (required by most BTL mortgage providers). It shouldn’t be forgotten
landlords that the interest paid on the mortgage is tax deductible against the
rent, thus lowering your income tax paid.
In the last 12 months, I have noticed a particular uplift in
interest from ‘50 something’ Eastwood people wanting to become landlords for
the first time. In Eastwood, the highest returns for the lowest investment are
at the lower end of the market e.g. the classic Victorian terraced house. Unfortunately
Victorian terraced houses, with two bedrooms are coming to the market in
smaller numbers than the larger four beds in top end sectors of the Eastwood
property market. When looking at the actual numbers, in the latter part of the
Summer of 2014 in Eastwood, in one month alone 31 two bed properties were on
the market in Eastwood. However, in January this year, a notoriously excellent
bumper month for properties coming on to the market, there were only 14 two bed
properties on the market in Eastwood to choose from. Today, that figure stands
at only 17 ..whilst the number of four and five beds has increased significantly
... interesting don’t you think?
At that lower end of the property market in Eastwood, (ie
where first time buyers and landlord investors compete with each other to buy
those smaller properties), I believe throughout 2015, there will be a slow and
steady tipping of the scales between supply and demand. In fact, from what I am
seeing and hearing, early anecdotal evidence has suggested over the last few
months (although we will need to look at figures later in the Spring once we
have the data from The Land Registry), we are beginning to see a polarised Eastwood
property market, where we have high demand but low supply at the bottom end of
the property market, yet high supply but lower demand at the top of market ..
and that can only mean one thing ... prices will go up quicker on the smaller
properties than the larger ones in Eastwood, thus narrowing the gap for people
looking to move up market!
After a spot of deep-yield trawling in Belper today I noticed
that even now you can still land a cracker of a 2 bed property for less than
£73,000 and giving a yield of some 7% as these are renting out at around £450 per month!
This modern 2 bed first-floor apartment is on with MyPad of
Derby and can be seen here:
And with lowish ground rent/service charges it certainly is
one to look at – the next cheapest MODERN 2 bed properties on the market are
currently asking £117000 or more – this is nearly £40,000 cheaper…. So assuming no lease
or other issues it won’t be around for long! Go and have a look and let me know
if you need any help!
Having a look through the new listings today and It looks
like very little work is needed on this 3 bed semi in Kirk Hallam on with
On at a smidge under £90,000 and rentals in the region of
£575 per month this looks good value at a nearly 8% yield in what is a rising market.
Another plus for this property is the separate dining room
as well as lounge. The more adventurous amongst you may want to knock the
kitchen through to create a more open living kitchen – but really all I would
suggest is maybe to look at the hall and stairs floorings and clean the rear
garden areas, and it looks ready to go as a rental.
Go and have a look and then let me know what you think: