Friday, 10 July 2015
Rents remain stable on Mill Road, Newthorpe
A landlord I know has owned a few properties on Mill Road in Newthorpe, for the last seventeen years. She came in to our office to discuss the possible ramifications of the emergency summer budget to her as a private landlord (certainly a lot of discussion on that!) and also discuss the rise and fall of property prices on the street and how this has affected her yield over the years.
In 1997, when she purchased her first property on Mill Road, the average value of a semi-detached house on the street was £36,650 which had a sharp rise to £98,000 by 2004. This rise in value continued, with average values of semis being £125,000 at the height of the property boom whilst a terraced house on Mill Road had an average value of just a little under £100,000. The value of a semi-detached property soon dropped in 2011 to £108,000, with the average value increasing to around £124,000 last year.
When she told me of the rents she had achieved on the street, they seem fairly stable over the seventeen years. She remembers the average rent was £450 per month in 2004 and is now around £550, dependant on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 5.5% on Mill road at the moment.
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