When purchasing a buy to let property, there are two ways landlords make money through property letting – capital growth and rental income growth.
A landlord from Cannock, who has a number of properties in both Tamworth and Lichfield, asked me a few weeks ago about the difference between Tamworth and Lichfield housing markets. He was focused on capital growth but also wanted to ensure his yield was relatively fair. I was quite surprised with my findings and wanted to share them with you.
The average property price in Tamworth is currently £193,264, In the last 3 months property values in Tamworth, according to my calculations, have dropped by 2.09%. Whilst in Lichfield average property prices in Lichfield are £279,499, having dropped by 0.54% in the last 3 months. Therefore, is Lichfield the better bet?
Well, not necessarily….
Over the last 5 years, property values in Lichfield have risen by 20.33% and in Tamworth by 23.49%, meaning over the last 5 years, property values have increased at a 13.45% quicker rate in Tamworth compared to Lichfield.
But then there is question of yield, as Lichfield normally has slightly higher yields than Tamworth.
Each Tamworth (and Lichfield) landlord will have different needs and requirements in his or her property investment. If you want an unbiased opinion on what (and what doesn’t) make a good property investment. Knowing what has happened to values in different towns, enables us to spot any trends or opportunities for buy to let landlords.
If you would like to discuss my thoughts on the rental markets, feel free to drop me a line to email@example.com
If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on Lorraine@hallandthompson.co.uk
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