Last week, a landlord came in to our office to discuss the rising property
values in Leamington Spa. He owns a varied portfolio of rental properties,
primarily in Leamington Spa with a couple in Warwick and Coventry, so it is
interesting to compare the increase in property values around the area.
Over the last 24 months the average property value in Leamington Spa has
risen by nearly £25,000, from £239,850 to £264,500.
Property values in Leamington Spa have increased by 10.4% in the last 2 years
This is a very reasonable
10.4% increase, which if you look at it on a weekly basis, average property
values in Leamington Spa, throughout 2012 and 2013, have increased by an
impressive £240.38 per week. When we looked at the values for detached houses
in Leamington Spa, this average increase is even greater at £41,100, a rise of
£395.62 per week.
When I looked at some of the surrounding towns, even though property values
are higher in Warwick, Warwick has had a lower average increase in property
values, at around £205.81 per week, whilst Coventry has an even more modest
average increase of around £123.31 per week. It is, nonetheless, a rise in average
property values to suggest the market is recovering steadily in our area – good
news for home owners and landlords alike.
Detached houses in Leamington Spa are on average are £41,100 more expensive than 2 years ago
When considering this landlord’s buy to let portfolio, the rental values
have remained fairly stable during the 12 months. They are slowly recovering to
the average of around 5 years ago, therefore it could be a good time to invest
in the property market in Leamington Spa. If you would like some advice about
buying to let, be you a landlord with a portfolio or someone thinking of
investing in rental market, please come and see me at our office on Regent
Grove near Holly Walk
Should you be investing in Coventry or Leamington Spa when it comes to property?
Well it depends why you want to invest? Is it for yourself to live in? Is for investment? For buy to let? Everyone is different, but as I was chatting to a landlord from Stoneleigh, who popped his head through our door on Regent Grove in the Holly Walk area
Both towns are similar in size and, taking into account the surrounding villages, have similar average property values.
The average property value in Coventry is £162,100 and in Leamington Spa is £264,500, whilst the average rents are at £866 per month in Coventry and £1,038 per month in Leamington Spa.
This gives Coventry an annual yield / return of 6.4% per year and Leamington Spa 4.7% per year. So surely Coventry is the better better bet if you were buying to rent it out?
This,
however, is a great example of annual yield/return not being the only factor
when choosing an investment property, as you should also consider.
Over the last five years, property values in Coventry have increased by 13.9% but by an impressive 20.1 % in Leamington Spa.
This is great for those that have already bought a property in Leamington Spa in the last 5 to 10 years. However, its even more interesting to note that even though prices have indeed risen by over 20% in the last 5 years, it hasn't been in a straight line. In fact, on average, even though prices are up by 7.6% since last Spring (2013), they did in fact peak in the Autumn 2013 and in the last 6 month's have dropped slightly by 0.5% .. maybe a time to buy another?
It
is in our interest that you buy a property which will rent well, and for long
periods of time. If you would like any advice on choosing properties, come and
see us at our office
