Letting agents in Nottingham, Slater & Brandley, have created a series of ‘Investor Spotlight’ articles specifically aimed to provide professionals landlords with ‘off market’ information on rental yields, capital growth, tenant demographics and property investment best practice. These articles are based on 20+ years of first hand property experience.
Letting agents in Beeston report growing interest levels from landlords.
In today’s article we’ll be looking at Beeston, a bustling town situated approximately 4 miles southwest of the City Centre and an area in which we have seen substantial growth very recently.
Home to one of Nottingham’s most famous brands – ‘Boots’ the chemist – as well as a number of other independent stores and retailers, Beeston has one of the highest population densities of the whole City according to the 2011 Census. Students flock to be close to the University of Nottingham grounds and the recent installation of new tram lines providing quick and easy transport links to the City Centre, further increasing the appeal of this part of town.
Installation of a Tram network in August 2015 makes for effortless access to Nottingham City Centre and also becomes a key driver for people looking to move to Beeston.
Buyers will discover an average sale price of £308,916 for detached houses, with Semi detached houses selling for an average of £165,541 and terraced properties at £137,222. An overall average house price of £186,387 was similar to nearby Chilwell (£189,212) but cheaper than Toton and Attenborough at £205,361 and £298,285 respectively. Capital Growth came in at 8% last year compared with 7% for Nottingham as a whole. (Source: Rightmove).
So what does this mean for investors and what do letting agents in Nottingham predict for the future? An average rental figure of £792.00 (according to home.co.uk) provides a gross yield of nearly 5.1% – not a bad figure when you also factor in the capital growth benefits to be had. Whilst some investors will look harshly over numbers less than 6-7% as an average gross yield on single lets, it’s important to remember that yields regularly dilute as areas become more popular due to inevitable competition between buyers. London is a prime examples of this, and you’ll find that most investors buying is these types of areas are opting for a longer term buy-to-let strategy having held discussions with letting agents in Nottingham.
Average capital growth last year of 8% shows increasing demand for this part of the City. (Source: Rightmove, 2016)
The University of Nottingham naturally draws in students year after year and this makes for popular HMO management prospects, although competition in the student sector can be rife and is very much reliant on a good mixture of quality and timing to ensure that properties let quickly. Landlords struggling with student lets as a result of the larger private developers having built large scale purpose built sites and now looking for a different angle may consider professional working ‘sharers.’ This sector is becoming increasingly popular throughout Nottinghamshire as a whole. Having recently let a number of shared properties in various parts of the City and often within one week of them coming to market, letting agents Slater & Brandley are seeing rising demand in this rapidly growing housing sector. If you are considering investing in houses in multiple occupation as a means to generate greater returns, be sure to talk with our resident expert, Garry Slater who will be only too happy to discuss the pros and cons of owning shared properties and the importance of adhering to HMO management rules.
In summary, whilst Beeston isn’t one of the cheapest areas of Nottingham to invest, there’s definite scope for a good return as an investor. As re-development of the town centre continues and the local economy remains on a growth trend we’re predicting that more and more people will look to Beeston as a home, in turn meaning that property owners will reap the benefits of investing here. Letting agents in Nottingham expect to see a good deal of landlord activity here in the coming year.
Are you thinking of investing in Nottingham? Would you like some advice on a potential purchase? Do your current letting agents really understand your investment goals? If you think you could be missing a trick, give me a call to talk in more detail on 0115 981 9651 or pop into our office on Loughborough Road for a chat.
Will Brandley MARLA
Disclaimer: The Information above is not intended to be and does not constitute financial advice or any other advice, is general in nature and not specific to you. Before using this information to make an investment decision, you should seek the advice of a qualified and regulated professional and undertake your own due diligence. None of the information above is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any individual, Company, or fund. The Company is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions. Copyright © 2016 letting agents in Nottingham, Slater & Brandley, All rights reserved. You are receiving this email because you gave us your contact details during a recent discussion. If you’d rather not receive any further emails, please click the ‘Unsubscribe’ link below.
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