We’ve been looking at the rented property market in Peterborough and what the experts have to say. Over the last year there has been the strongest annual increased in yield for smaller houses and flats. This I when compared to other rented property types over the last 12 months. So why do smaller properties and flats in Peterborough offer landlords a better yield?
Inventory Base completed a market analysis. Their research found that cooling properties values along with leading rental growth has resulted in flats providing an average yield of 6.4%. Meanwhile, terraced homes are offering a 6.3% average yield. The research also found that semi-detached homes offer a 5.3% return on investment. The poorest performing was detached properties. These are only offering a 3.9% average yield for landlords.
Over the last 12 months it can be seen that flats are the only type of rented property to experience a drop in the average property value. They fell by 0.9% in the last year. However, flats have also seen the strongest level of growth in average for monthly rental value. The monthly rental value on average is up by 9.3%.
The average field of a flat has grown by 0.6%. This is much stronger than the average yield of rented properties like terraced properties with a 0.4% increase, semidetached increased by 0.2%, as did detached homes.
One of the reasons that smaller properties offer Peterborough landlords better yields is because flats often offer buy-to-let investors a more affordable entry point for a first property investment. In addition to these, landlords of smaller properties and flats also benefit from a higher tenant demand. This results in a stronger rental price growth.
Smaller properties and flats to rent in Peterborough have a wide range of advantages for investors. They offer lower running costs, which means a small impact on the landlords bottom-line. It’s also a smoother process for renting as well as managing the property. In turn, a less stressful experience for landlords.
Are you looking for properties to invest in as a landlord? Maybe you need someone to find you tenants and look after your property? The team at AGT Property Management are here to help you. Call our friendly team now to see how we can help you.
