Last week, a landlord who lives in Radlett, came in to our office to discuss the rising property values in the Watford area. He owns a varied portfolio of rental properties, primarily in Watford and Hemel Hempstead with one in Borehamwood, so it is interesting to compare the increase in property values around the area.
Over the last 12 months in Watford average property values have risen from £300,300 to £331, 600, a rise of £31,300, or £603 per week. When I looked at some of the surrounding areas, Hemel Hempstead has had a slightly lower than average increase in property values, at around £484 per week, whilst Borehamwood has had an even lower than average increase of around £240 per week. It is, nonetheless, a rise in all the town’s average property values yet it suggests the market isn’t out of control as the newspapers were suggesting over the past few months. This is good news for home owners and landlords alike as it shows that the market is more level-headed than people may think.
When considering this landlord’s buy to let portfolio, yields can be in the order of an average 4% to 5% per year, depending where you buy, so combine that with steady rental growth, excellent increases in capital values of the properties themselves and it could be a good time to invest in the property market in Watford as property values start to rise.
If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market, please come and see William at our office on St Alban’s Road in Watford or give him a call.
