Telford property values have increased by £103 per week!
Last week, one of our portfolio landlords came in the office to discuss the rising property values in Telford. He owns a varied portfolio of rental properties, primarily in Telford. With our guidance this particular landlord invested in his first buy to let property in Telford just over 3 years ago, a ground floor apartment in Telford. Since then, he’s added several properties including a semi-detached and a terraced house.
We got chatting and I expressed the fact that I felt we hadn’t really seen a drastic boom in property prices for a good few years. Shropshire is a relatively settled and consistent market and I thought it would be beneficial to research growth over a 3 year period, the time that had passed since this landlord purchased his first buy to let.
So, let’s get to the interesting stuff… Over the last 3 years the average property value in Telford has risen by nearly £16,068, from £142,819 to £158,887, a huge 11.25% increase. This is a considerable average increase of £103 per week over the past 3 years (since July 2012). During this period, the landlord has experienced between around a 6.5% per annum gross yield on his portfolio.
How has this happened in a recession/ suppressed/ depressed market…. Well… If you take a step back and look at the huge amount of positive infrastructure changes in Telford over the same 3 year period its quite inspiring! New schools have opened, housing developments completed, medical practices have grown, sports centres regenerated, roads renewed and of course the stunning overhaul of the Telford Shopping Centre.
When considering this landlord’s rental values have remained stable during the 3 year period, with very few void periods, you can see why he intends to purchase his next one!
If you would like some advice about buying to let, please come and see us at our office in The Square, Broseley.