Working with new investor landlords means that we also keep an eye on the selling prices of property to find their next purchase for their portfolio.
I was talking about this with a new Estate Agent based in Dunstable called Deakin-White http://www.deakin-white.co.uk/ who since their launch only a couple of months ago have risen to the top of the rankings on Rightmove for Sales Agreed in the area. Apart from their fresh approach to marketing even without a shop front they have found that as soon as a property is listed their phones are lit up by potential viewers and the prices of the properties being listed in Dunstable is pushing higher all the time.
Some quick research shows us that prices in LU5 have risen by an average of 18.34% over the last 2 years and in the last 6 months by 6.6% whilst the prices in LU6 have risen by an average of 16.94% over the last 2 years and in the last 6 months by 5%.
If we take The Parklands development in Dunstable as an example. This was completed around 2007 and is the premier development within Dunstable. A gated development located behind the Grove Theatre and within walking distance of the town centre it is a highly sought after location for tenants.
In May this year No. 101 The Parklands a 2 bedroom apartment sold for £150,000. In April 2012 it sold for £135,000 but when the development was completed in March 2007 it was sold for £176,000. Right now only 3 months after it last sold, 2 bedroom apartments are being sold at around the £160,000 level
In June 2014 No.34 The Parklands a 1 bedroom apartment sold for £104,950. At around the same time one of our landlords purchased a very nice 1 bedroom apartment in The Parklands for £100,000. Right now 1 bedroom apartments are being advertised from £125,000 to £140,000! A nice return for the purchasers of both these apartments even at the lower figure.
