The canning factory on Springfield Road was demolished in 2007 and two new home developments were built in its place. I was impressed that planning department of South Kesteven District Council insisted that the original trees at the front of the site remained. The first development to be built was the Hudson Way estate,with the Bovis built Mallard Quarter currently being constructed as we speak.
It generally takes a short amount of time to let properties on both developments. Tenants consider the proximity of the train station to be an advantage, as they are able to pass under the train tracks near Huntingtower Road. A three bedroomed semi-detached property or townhouse, depending on condition and location, could be purchased for around £120,000 or £130,000. The rents that could be achieved for these are between £525 and £575 per month. This means landlords can potentially expect yields of around 5% to 5.5% per year.
Two bedroomed apartments can be purchased between £70,000 and £84,000 and they typically can let for between £425 and £450 per month. There is usually the service charge that a landlord needs to pay to the freeholder of the building, this usually includes building insurance and grounds maintenance. Even after paying that service charge, yields of between 6% and 6.5% per year are achievable.
If you have already done a search for property or are trying to figure out where to start, we’re happy to advise on properties before you buy. It’s in your interest that you purchase something that can let, whether you are a Belvoir landlord or not.
