Last week I spoke to one of our Landlords and she asked me if the number of bedrooms in a property had any relationship to the return she could get. I did some research and followed up her query – I was actually quite surprised with the results. …
Currently in Portsmouth, the average rent for a one bed property is around £550 per month with an average value of £106,607. This means an approximate return/yield of 6.2% per year. The average rent for a two bed property is £725 per month with the average value being £173,488 which gives a return/yield of 5.2% per year. When I looked at the three bed properties, the yield/return changed quite drastically. The average rent being asked for is £795 per month but the average value is £209,489 which would give a potential return/yield of only 4.5% per year. Four bed properties achieve a poor return/yield of only 3.1% per year, as average rents are £950 per month but the average value is £364,117.
Whilst one bed properties do offer the best return they are harder to let and have more void/empty periods. The number of bedrooms is important, but it is only one of many factors you should consider before buying a property.
If you would like any advice on choosing properties, come and see us at 100 Palmerston Road, Southsea or 244 London Road, Waterlooville.
