With over £700 million investment in the city in the past ten years, Gloucester City and Gloucestershire County Councils have strived hard to change the landscape of Gloucester and one of the benefits of this is the prospering property market.
Of course, it isn’t just the local authority investment which has contributed to the changing face of Gloucester’s thriving housing prospects. The once neglected docks, with empty warehouses from an industrial past, have now been renovated into sought-after waterside apartments. Where factories once stood is now The Quays and it is estimated that the outlet shops, cinema, restaurants and bars which make up this development brought in over 5 million visitors to the city in 2015; not bad for an attraction that has only been established for seven years.
But what does this mean for Landlords? It’s estimated that the development of the Cattle Market alone has provided over 1000 more jobs in the past decade. In the same period the University of Gloucestershire has developed its presence within the city and Gloucester Business Park on the outskirts of the city has developed more and more land, bringing a wide variety of businesses into the area from logistical companies to the local NHS Care Trust. The result is an increase in demand from both students, young professionals and families seeking to rent and buy property. Essentially, it has never been a better time to invest in a property in Gloucester and realise a tenant both quickly and with a good annual yield.
According to Rightmove the average cost of two bedroom property within Gloucester is £150,486*and the average rent was £624 per month (£7,488 per annum). That produces a gross yield of 4.9% and even taking into account a month’s void period and wear and tear would produce a net yield of around 4.3%, still higher than a high-street savings account. And of course, this is just an average.
So, where to invest? Several areas of the city are generating quick viewing time responses including developments around Gloucester Royal Hospital (The Crescent and Pillowell Drive). Kingsway and Hempstead, which are especially close to The Quays, and areas like Linden, within walking distance of the Quays, are also seeing an increase in rental value. Kingsholm, offering good access to the Cattle Market, the University and Hartpury College is equally increasing in popularity. We are also seeing the return of the renovation Landlord. There are many properties in the city, especially in the Linden, Kingswood and Barnwood areas where savvy Landlords are snapping up dilapidated, older properties and carefully budgeting a modest renovation in order to bring a presentable rental property to the market and, in some cases, houses of multiple occupancy, thus increasing their income by renting by the room.
Here at Sure Lettings, we’re finding we currently have more demand than supply and are taking calls and receiving emails from applicants on a daily basis with a diverse range of requirements from studio flats through to family homes. Newly advertised properties are generating quick reaction times and typically we are making viewings within 24 hours of the property coming to market. We have found that this increased demand is increasing rental amounts and we predict that these rises will continue throughout 2016.
Whether you are a first-time Landlord ready to invest or an established Landlord looking to port your property to a new agent, we are here to help you with our knowledge of the market and practical experience on letting out your property. If you are interested to hear more, please don’t hesitate to contact the team on 01452 31099, email us at gloucester@surepropertygroup.com or call into our offices on Worcester Street for an informal and no-obligation chat.
We look forward to hearing from you.
*figures correct as of January 2016.