Following last week’s article about how property values had risen, I thought I would share that the weekly prices rises are only part of the story. Whilst the weekly property value increases in pound notes show some towns better than others, one must look at the percentage increases as well to get the full picture.
Out of Ilkeston, Heanor, Eastwood and Belper, the best performing town was Heanor, with property values increasing on average 8.4% in the last 12 months. Silver medal goes to Eastwood at 5.3% over the same time frame and Bronze is a photo finish, with Ilkeston piping the post with increases of 4.3% and Belper at 4.2%
So is Heanor best to invest in? Not necessarily! Property ownership is a long term consideration. Today’s Ilkeston’s property values are only 5.1% higher than they were 3 years ago (so you can see most of that increase has been in the last 12 months). Heanor’s property values are a more impressive 8.5% higher and Eastwood’s are 8.2% higher than 3 years ago. However, it’s Belper that is the big surprise. Yes, it’s true property values are 4.2% higher than they were a year ago, but here’s the surprise, they are in fact 1% lower than they were 3 years ago.
Investing in property is also about the yield / annual yield that a landlord can earn each year as well. Interestingly, Eastwood landlords have the highest average yields of 5%, with Ilkeston and Heanor having average yields of 4.1% per year. Belper’s average yield is only 3.2% per year, but landlords are compensated with higher property values
As I have a database of all the house sales going back to 1999, I can keep an eye on the trends and see where the hot spots are for investment. If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in rental market for the first time, please ring me on 01332 910499 or email on lettings@sprucetree.co.uk
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