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 a lettings agency in Nottingham, this month we will be looking at an area of Nottingham with relatively low entry costs – Netherfield.
Netherfield is a relatively small town three miles to the east of Nottingham City Centre. Situated in the borough of Gedling it has an NG4 postcode.
Streets of Victorian two and three bed terraced houses form the majority of the town, with newer developments having been built more recently. The population of Netherfield is approximately 7,000 people.
The growing Victoria Retail Park sitting on the Colwick Loop Road offers relatively easy access to Nottingham and now houses an array of retailers including major chains such as Frankie & Benny’s, McDonalds, B&Q Superstore, Boots, M&S Simply Food, Greggs, Argos and Tesco to name just a few. And with many new jobs set to be created as part of a new multi-million pound Sainsbury’s development we can expect occupier demand to increase in the coming years.
Bus travel to the City Centre is made simple every seven minutes and an alternative method of travel is the small train station which is just a few minute’s walk for most of Netherfield’s.
Buyers in Netherfield will find an average sale price of £86,409 over the last twelve months. To compare, nearby towns of Colwick, Carlton and Gedling hold average prices of £111,993, £132,106 and £145,849 respectively.
Capital Growth – at a low 3% last year – was considrably less than the average for Nottingham at 5% but the gap should start to close in the coming years as a result of the development of Victoria Retail Park.
Netherfield’s average rent of £476pcm across all property types gives a 6.6% overall average gross rental yield (£476 x 12 = £5,712 rent / £86,409 average sale price), the highest we’ve seen in the series so far.
Rental demand in Netherfield comes largely from ‘first time renters,’ with young couples and individuals on tighter budgets flying the nest. Approximately 60% of Netherfield’s tenants will be in receipt of Housing Benefit. Landlords willing to embrace this tenant group will discover good returns to be made provided they are careful in the selection of tenants as individual property management can be more time consuming overall.
Landlords with a sole focus on rental cashflow as their investment strategy will benefit from low entry costs allowing for those with higher cash deposits to spread risk and gain increased leverage from buying a number of properties.
To summarise, we see Netherfield as a strong contender for landlords looking to hold some strong cashflow properties within their portfolio.
If you have a question regarding the best areas to invest in Nottingham please feel free to contact either myself, Garry Slater, Managing Director or Will Brandley, Partner on 0115 981 9651.
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.