Nottingham letting agents Slater & Brandley, have created a series of ‘Investor Spotlight’ articles specifically aimed to provide professional 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 Nottingham property experience.
Mapperley Park tops house price growth chart for Nottingham
You may have seen the house price growth chart back in my January article that showed property prices in Mapperley Park, Nottingham grew by around 16% last year according to Rightmove – more than any other area of the City. In today’s article we’ll be looking at what may of driven such growth and providing information on whether or not we think you could benefit from investing in this prestigious part of Nottingham. Mapperley Park is situated on the north-easterly side of the City and is surrounded by areas such as Sherwood, Carrington, Basford, Thorneywood, Gedling and St Anns. An eclectic mixture of Edwardian and Georgian housing set amongst tree lined avenues provide bags of character with this being the principle reason many choose to live here. Being just 2-3 miles away from Nottingham City Centre allows for quick access to major amenities and this lends itself to the many professionals such as solicitors and accountants who can reach their workplace in just minutes. Mapperley itself also benefits from it’s own high street (known locally as ‘Mapperley Top’) providing a range of popular bars, shops and restaurants. Nottingham letting agents have long promoted the Mapperley area for it’s local amenities.
Leafy, tree-lined avenues provide for a stunning backdrop throughout the area.
Last year most property sales in Mapperley Park involved flats which sold for on average £114,744. Detached properties sold for an average price of £384,540, while semi-detached properties fetched £290,008. Mapperley Park, with an overall average price of £216,616 was far more expensive than nearby Carrington (£134,014), Mapperley (£168,709) and Sherwood (£147,982) – (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 £730pcm for NG3 (home.co.uk) provides an average gross rental yield of 4.04%, similar to figures calculated in other high growth parts of Nottingham such as West Bridgford and The Park, and investors looking to play the long game are more likely to reap the benefits of purchasing property here when looking for capital growth. If monthly cashflow is an important aspect of your investment strategy then higher yields can be achieved through the provision of houses in multiple occupation (HMO property management or HIMO’s) and larger blocks of property (flats being an obvious example) and as Nottingham letting agents we’ve seen significant growth in both these sectors in recent years with young working professionals opting for this type of housing as opposed to standard single lets.
New build developers are making the most of untouched space in Mapperley Park to create stunning results.
So what’s driven such high growth in Mapperley Park? A thriving economy and the current hunger for ‘self build’ or redevelopment plots has seen a number of new home developers entering this part of the City. Many areas still remain untouched or derelict and this makes for ripe development prospects when again you consider how close the area is in relation to Nottingham City Centre. Confidence in the market has seen demand grow significantly here, in turn providing a sharp rise in asking prices and a flurry of activity within Mapperley itself. As far as Buy To Let (BTL) is concerned, we’ve also seen an increase in asking prices both in Mapperley Park and within surrounding areas such as Sherwood and Carrington, suggesting perhaps that a ripple effect is starting to take effect and that now may be a good time to look at investing in the surrounding areas. That being said, there are certainly one or two parts that you will want to avoid altogether and we can help identify these for you should you wish to talk in more detail. In summary, whilst Mapperley Park isn’t one of the cheapest areas of Nottingham to invest, there’s definite scope for a good return as an investor when using the right strategy. Those looking at ‘single lets’ may consider looking more towards the fringes, but any investor hoping to redevelop, “multi-let” or build new blocks of property will be sure to see some real benefits as long term holdings.
Are you thinking of investing in Nottingham? Do you want some advice on a potential purchase? Do your current agents really understand your investment goals? As Nottingham letting agents we can help you. If you think you could be missing a trick, give us a call on 0115 981 9651.
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