Thursday, 12 November 2015
New-Build Developments off the Heanor Road
What with many builders in the region starting to go into over-drive to build their developments, I often get asked about new-build developments so I thought I would look at some in the Heanor area. Looking at some of the new build developments that have sprung up off the Heanor Road leading out of Heanor and towards Smalley, there are two that are rapidly being established now – Smalley Pastures and Smalley Manor.
Smalley Manor, being built by William Davis – a privately-owned family business – consists of 2, 3 and 4 bedroom properties and is located behind Marina Road and the Grange. Meanwhile, Smalley Manor, being built by Peveril Homes, also has a range of houses and also some smaller bungalows.
Typically, it generally takes a short amount of time to let properties on such new-build developments. Tenants love the fresh appeal of crisp, newly built properties and whilst they will still consider the proximity of the local amenities and transportation links, they often will compromise a little to get into a new home. They are not unlike house-buyers in this respect, many of whom will “settle” a little in terms of location (and size/space) in order to acquire a newly-built abode. Both developments are on the convenient side of town for access to Derby, close to Heanor Gate Science College and are only a mile or so from the centre of Heanor itself.
A three bedroomed semi-detached property or townhouse, could be purchased for around £180,000 to £200,000. The rents that could be achieved for these are between £595 and £675 per month. This means landlords can potentially expect yields of around 4.5% per year. When this is factored into relatively short voids and good growth prospects, especially as the states mature, these levels look reasonable.
Two bedroomed houses have been reserved at around £130,000 and they typically can let for between £525 per month, meaning yields of around 5% per year are achievable.
If you have already done a search for property or are trying to figure out where to start, we’re happy to advise on properties before you buy. It’s in your interest that you purchase something that can let, whether you are currently a Spruce Tree Lettings landlord or not.