Here at Slater & Brandley we like to bring research and analysis to landlords looking to grow their property portfolio in an effort to help form opinion on where to invest next. As letting agents in Nottingham, this month we will be looking at an area of Nottingham with relatively low entry costs – Carlton.
To the east of Nottingham, Carlton (NG4) falls under Gedling Borough Council control. Carlton grew with the textiles industry in the 19th century with many workers being housed in the smaller Victorian terraced properties. Today Carlton Hill plays host to a number of modern shops with many National chains present as well as a good number of smaller independent retailers. Carlton has two leisure centres, four schools and a population of approximately 49,500 people – a number which increases by about 1,000 every ten years (according to public census data).
Situated within easy reach of the City Centre, Carlton is served well by public transport and remains popular with both working couples and young families. Housing Benefit claimants occupy a relatively small percentage of the suburb.
Carlton has an average house sale price of £168,599 for detached properties, £125,483 for semi-detached and £101,804 for terraced properties (Nationwide, 2015). An overall average sale price of £130,494 Carlton is generally more expensive than neighbouring Colwick (£113,137) and Netherfield (£87,277). Capital Growth – at approximately 5% last year – mirrors the average for Nottingham as a whole.
So how do things look from an investment point of view? A typical three bed semi-detached house will let for between £550.00 – £650.00 pcm depending on condition. With an average rent of £555.00 pcm across all property types this would give a pretty modest 5.1% overall average gross rental yield (£555 x 12 = £6,600 rent / £130,494 average sale price). If you are looking for tenant longevity you should find the area works particularly well with our analysis pointing to Tenants staying put for an average of 3.5 years or more making property management in Nottingham simpler.
Rental demand in Carlton often chases the three bedroom semi-detached and larger terraced houses. A small number of new build flats appear to be entering the market, as well as quite a few pub-to-flat or office-to-flat conversions as more experienced landlords seek out the very best in yields.
Those looking for a more even mix of cashflow and capital growth, with relatively low entry prices, will find Carlton hard to beat. As with all property related investments, the price at which you buy will make all the difference.
If you have a question regarding the best areas to invest in Nottingham please feel free to call us on 0115 981 9651.
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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.