Last week, a landlord who lives in the Sunnyhurst area of
Darwen came into our office to discuss the rising property values in our part
of Lancashire. He owns a varied
portfolio of rental properties, primarily in Darwen, Accrington and Blackburn,
so it was interesting to compare the increase in property values around the
area.
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| Prices up £55 per week in Darwen |
Over the last 12 months in Darwen, the average property value
has risen from £108,700 to £111,600, a rise of £2,900 or £55 per week. When I looked at some of the other
surrounding areas, average property values in Blackburn have risen from £125,800
to £130,100, a rise of £4,300 or £82 per week.
However, Accrington property values had risen impressively from £99,200
to £107,000, a rise of £7,800 or £150 per week.
This means that values in Darwen have risen by 2.6% over the last 12
months, in Blackburn 3.4% and in Accrington a very impressive 7.8%. Therefore
on the face of it, Accrington is surely the best place to invest in buy to let?
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| Darwen |
As a landlord, one must consider the medium to long-term when
it comes to property values together with additional factors like yields and
void periods. In future articles I will
discuss those matters in greater detail.
However, looking at property values over the last three years, the
tables have turned. In Accrington even
with the recent impressive increases in property values, property prices here
are only 2.6% higher than they were three years ago, whilst in Blackburn they
are only 1.72% higher but our town of Darwen is an impressive 7.9% higher than
three years ago. The research I have
carried out enables me to give landlords the best advice on what to buy (or
not) in either Darwen, Accrington or Blackburn.
When considering a landlord’s buy to let portfolio yields in
Darwen can be in the order of 5%-10% per year, depending upon where you buy, so
combine that with steady rental growth, excellent increases in capital values
of the property itself and it could be a good time to invest in the Darwen property
market as values begin to increase.
If you would like some advice about buying to let, be you a
landlord with an existing portfolio or someone thinking of investing in the
rental market for the first time, please come and see me at our office on
Market Street in Darwen.
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