Some investors remain adverse to leases and will only invest in freehold property. At least with freehold they have full say over their costs, although as stated by the Landlord and Tenant Act 1985 with it’s landlord repairing obligations in Section 11, they will still have to maintain the property. They also don’t have to deal with management companies and committees.
The investments will tend to be houses rather than flats for obvious reasons. This is a small house in Ryland Close on the market at £182,500, which is not much more than for a one bedroom flat. Some ‘updating’ is required. But if a rent of £850pcm can be achieved then the gross yield will be 5.6%.
There tends to not be a lot of difference between rents in similar sized houses and flats, but a garden will appeal to pet owners which if a landlord is willing to accept will increase tenant demand for the property.
