A landlord with a small property portfolio came into our office on Tavistock Street last week. He lives between Shefford and Biggleswade , in Clifton, and has properties in both towns. He wanted to ask our opinion on where he should his next Buy to Let property.
Looking at Shefford, the average property price can be an impressive £286,791 and the average rent is equally high at £1319 per month. In Biggleswade , an average property is £248,788 and the average rent is only £953 per month. The annual yield in Shefford could be only 5.5% per year, compared to Biggleswade where he could achieve an annual yield of nearer 4.6%.
It made me consider two other towns close by, Henlow and Sandy. In Sandy, I was surprised to find property values are much higher than in Henlow, with an average property price of £300,370. They have an average rent of £771 per month, which could achieve a yield of 3%. The average price of a property in Sandy is £259,350 , with rents of around average £987 per month. This could achieve a yield of 4.6% per year.
It goes to show that Shefford can be a good area for an investment property, but it is a decision that shouldn’t be taken lightly. These are only averages, so the yields for some small to medium sized properties in popular areas can achieve yields of 5.5% to 7.5% per year. If you want to know our thoughts on property , come into our office..
