A landlord with a small property portfolio came into our office on London Street last week. He lives in a village between Ludgershall and Andover, and has properties in both towns. He wanted to ask our opinion on where he should buy his next Buy to Let property.
Looking at Andover, the average property price can be an impressive £282,400 and the average rent is equally high at £1045 per month. In Ludgershall, an average property is £195,000 and the average rent is only £608 per month. The annual yield in Andover could be around 4.5% per year, compared to Ludgershall where he could achieve an annual yield of nearer 3.7%.
It made me consider two other towns close by, Whitchurch and Pewsey. In Whitchurch, I found property values are much higher than in Andover, with an average property price of £359,600. They have an average rent of £1372 per month, which could achieve a yield of 4.6%. The average price of a property in Pewsey is £361,150, with rents of around £815 per month. This could achieve a yield of 2.7% per year.
It goes to show our town of Andover can be a good area for an investment property as the purchase price can be reasonable, but it is a decision that shouldn't be taken lightly. These are only averages, so the yields for some small to medium sized properties in popular areas of Andover can achieve yields of 4.5% to 6.5% per year.
If you want to know our thoughts on property in Andover, pop into our office.