Thursday 16 July 2015

Rents remain stable on South Primrose Hill, Chelmsford.

One of our landlords came into our office the other day; she owns a 2 bed terrace house on South Primrose Hill. She bought it back in 2006 and wanted to have a chat about how the property prices have fared in that time in the South Primrose Hill area, given that over this time prices have gone through a bit of a roller-coaster ride. She also wanted to see how the change in prices has affected her yield.

The average value of a 2 bed terrace house in South Primrose Hill in 2006, when she purchased her property, was £195,921, by the year 2008, average valuations in the street had risen to £208,000, a rise of 6% in 2 years. Only a year later, the average values had dropped to £183,748, showing how quickly the market changed when the crash happened. However, 9 years later, property values in this street currently stand at £241,427. An overall increase in value, of 23%. 

When she told me of the rents she had achieved on the street, they seem fairly stable over the nine years of her ownership. When she first started with the property, the rents achievable were around the £730 pcm mark. Now, the current average rental prices of a 2 bed house on South Primrose Hill are around £895 pcm. This means that her property has produced her an even 4.4% annual yield from start to finish, a good sign that no matter what was happening in the property market, the rental yields have remained stable throughout. 

If you would like some advice with your potential investment, please come and see us in our office on Duke Street.

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