A landlord with a small property portfolio came into our office on St Peters Hill last week. He lives between Stamford and Grantham, in Castle Bytham, and has properties in both towns. He wanted to ask our opinion on where he should his next Buy to Let property.
Looking at Stamford, the average property price can be an impressive £240,600 and the average rent is equally high at £760 per month. In Grantham, an average property is £133,200 and the average rent is only £522 per month. The annual yield in Stamford could be only 3.8% per year, compared to Grantham where he could achieve an annual yield of nearer 4.7%.
It made me consider two other towns close by, Sleaford and Melton Mowbray. In Sleaford, I was surprised to find property values are much higher than in Grantham, with an average property price of £152,400. They have an average rent of £563 per month, which could achieve a yield of 4.4%. The average price of a property in Melton Mowbray is £157,300, with rents of around £595 per month. This could achieve a yield of 4.5% per year.
It goes to show our town of Grantham 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 of Grantham can achieve yields of 5.5% to 7.5% per year. If you want to know our thoughts on property in Grantham, come into our office on St Peters Hill.
