I have been talking to a landlord about a potential property investment in a studio flat in Clarkes Drive, off Royal Lane. Clarkes Drive is a strong location for tenants, being not too far from Uxbridge, close to Hillingdon Hospital, Brunel and a short walk to West Drayton.
My gentleman was interested to know how rents have changed over the last few years in Clarkes Drive. Having looked back ten years, in 2003 the rent was around £495 pcm, and now averages £630 pcm. That sounds like a large increase, but works out to have been an increase of 2.5% per year, which is a little less than the UK’s current inflation rate. Mind some years the rent increases have been higher and some lower.
To take a sounding on current prices, studio property in nearby Ryeland Close is on the market for £109,950 and Lowdell Close £113,000 so the yield is currently around 6.8% on these properties. With leasehold property there is always ground rent and service charges to account for, but the returns are worth considering.
Like my landlord, if you would like some advice about what could make a good investment, please visit our office on Hillingdon Hill. We don’t sell houses so are free to consider all property on the whole market when giving advice.
Notes: Picture © Marion Phillips
