A Landlord with a nice little property portfolio came into our offices recently. He lives between Andover and Whitchurch and has properties in both towns. He likes these areas and wanted advice on which one was currently the best option.
Although they are only a few miles apart they are quite different beasts. Andover is a good deal larger and there is always debate as to whether Whitchurch is a town or a village but we won’t start that debate here!
Looking at Andover first the average property price is currently £258,870 while the average rent is £843pcm. In Whitchurch the average property price is a whooping £408,778 while the average rental value is an equally eye watering £1296pcm. This gives Andover an average annual yield of around 4% whereas in Whitchurch it shows as being around 3.8% so not massively different but your investment stands to be greater at the beginning.
It goes to show that there isn’t a massive difference in return. However, you need to factor in that these are only averages so the yields may fluctuate depending on the property, especially in Whitchurch which is very popular with commuters and tenants who work in Basingstoke. In our experience, they will happily pay upwards of £900pcm for a two bed property which is not so common in Andover.
So, as always, do your homework, know your market, and take advice!