Last week, a landlord who lives in Letchworth Garden City came into our office to discuss the rising property values in our part of Hertfordshire. He owns a varied portfolio of rental properties, primarily in Letchworth and Baldock with one in Hitchin, so it is interesting to compare the increase in property values around the area.
Over the last 12 months in Letchworth average property values have risen from £298,998 to £323,886, a rise of £24,888 or £479 per week. When I looked at some of the surrounding areas, Hitchin has had a larger than average increase in property values, at around £1,116 per week (as the average value of a Hitchin property has risen from £331,184 to £389,233), whilst Baldock has had a slightly lower rise of around £869 per week (taking an average property in Baldock from £293,696 to £338,917).
Interestingly, when one looks at the percentages, Hitchin has performed the best, rising by 17.53% in the last twelve months, compared to Baldock at 15.40% and Letchworth at 8.32%! It is, nonetheless, a rise in all the town’s average property values which suggests the market is increasing steadily in our area – good news for homeowners and landlords alike.
However, back to Letchworth, long term property values which track peaks and troughs are more helpful to landlord investors.
The questions I seem to be asked on an almost daily basis by landlords are:
- “Should I sell my property in Letchworth, or even buy another?”
- “Is the time right to buy another buy to let property in Letchworth and if not Letchworth, where?”
- “Are there any property bargains out there in Letchworth?”
When considering this landlords’ buy to let portfolio, yields can be in the order of an average of 3.5% to 5% per year, depending on 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 Letchworth as property values start to rise.
If you would like some advice about buying to let, whether you are a landlord with a portfolio or someone thinking of investing in the rental market, do what a number of other North Hertfordshire landlords do and visit our social media links where we discuss the local property market, how Letchworth compares with its neighbouring towns/rivals, and hopefully answers the questions above.
We don’t bite, we don’t do hard sell – we will just give you our honest and straight talking opinion. If you are passing, do pop in and see us at our office on Station Place, Letchworth or telephone us on 01462 894565 where Andrew or Simon will assist you.