Thinking of buying a buy-to-let?

Why Warwickshire is popular with buy to let investors

The buy to let market is a hugely appealing one for many people these days, but there are a lot of tough decisions that have to be made. It is essential that you research any areas you hold an interest in, and it may be that Warwickshire is of benefit to you. There are many reasons why Warwickshire is popular with buy to let investors and a smart investment here can help you to enjoy a strong return.

There have been a number of online and media sources which have highlighted the high level of demand for rental property in Leamington Spa. It is never a bad thing to invest in an area where there is a high level of demand, because you can be confident about filling your property and not being concerned about void properties.

You should always consider the expected rental yields for an area but never overlook how much demand there is because no matter what the expected rental yield is, if there is no one willing to be your tenant, you will receive no income.

Leamington Spa has a lot to offer

With this in mind, the expected rental yield for the CV31 postcode, representing Leamington Spa provides some properties that offer an attractive return. A one bedroom property in CV31 offers a rental yield of 5.24% while a two bedroom property provides an expected rental yield of 4.97%. There is a return of 3.1% for a three bedroom property and a four bedroom property in CV31 provides a return of 4.16%. Anyone investing in a five bedroom property in CV31 will find that the expected rental yield stands at 3.9%.

Given that many investment specialists consider 4% a good starting point for the return you receive from an investment, you can see that Leamington Spa is a safe bet in this regard. In the past 12 months, the average price paid for Leamington Spa property stands at £318,747, a figure which is higher than the Warwickshire average.

The cost of property and the rental fees you can charge are another factor to consider. It may be that you want to operate in a more affluent area as you’ll think this will provide you with a better standard of tenant who will be more likely to treat your home with respect. This is definitely something landlords should consider when looking for an area to invest in and if this line of thought interests you, Leamington Spa is likely to be a smart option.

Rugby provides a good return for buy to let investors

Of course, you may be more focused on affordability and in this regard, Rugby may be more to your liking. In the past 12 months, the average price paid for property in Rugby comes in at £235,356. There is a mix of results with respect to expected rental yields in Rugby, and smaller properties in the town are worth considering. A one bedroom property in the CV21 postcode area offers an expected rental yield of 6.29% while there is a return of 5.48% from a two bedroom property. A three bedroom property in CV21 provides a return of 4.77% and you can expect a rental yield of 3.78% when you invest in a four bedroom property. A five bedroom property in CV21 offers an expected rental yield of 3.31%.

If you are considering the general area in and around Warwickshire, and you don’t mind venturing into Coventry, there may be some attractive returns on offer. In the past 12 months, the average price paid for property in CV1 stands at £194,593 and this provides the platform for an attractive rental yield.

A one bedroom property in CV1 offers a 6.23% rental yield while a two bedroom property in the area offers a 6.79% rental yield. You can obtain a return of 6.44% with a three bedroom property but with a four bedroom property, there is an expected rental yield of 8.02%. This is bettered by the expected rental yield of a five bedroom property, which is said to provide a 9.41% rental yield. These are highly attractive rental yields and if you are focused on the return on investment with the buy to let market, this is an area that is worth considering.

There are a number of reasons for this demand, including the affordable nature of Coventry homes, but the fact that Coventry is highly ranked with respect to cities that are good for students is a key factor. The student market is often a strong influence on the buy to let market, and the presence of some educational institutions in Coventry and Warwickshire itself should provide you with confidence that this is an area where you can invest in to get a good return.

At Complete Estate Agents, we have a great level of interest in the rental market and if you would like advice or guidance about the Warwickshire buy to let market, please get in touch.