A landlord I know has owned a few properties on Victoria Street for the last thirteen years. She came in to our office to discuss the rise and fall of property prices on the street and how this has affected her yield over the years.
In 2000, when she purchased her first property on Victoria Street, the average value of a terraced house on the street was £35,250 which had a sharp rise to £52,750 by 2002. This rise in value continued, with average values being £74,600 in 2004 and £93,700 in 2006.
At the height of the property boom in this area, a terraced house on Victoria Street had an average value of £109,700. This soon dropped in 2010 to £76,500, with the average value increasing to around £80,400 this year.
When she told me of the rents she had achieved on the street, they seem fairly stable over the thirteen years. In 2002-2003 the average rent was £305 per month and is now between £450 and £500, dependant on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 7% on Victoria Street at the moment.
If you would like some advice with your potential investment, please come and see us in our office on St Peters Hill.
