Do semi-detached properties on the Beaufort Road estate make good investments for Buy to Let?

Stapenhill River Gardens

I was talking to someone who lives in one of those modern 4 bed detached houses on one of those nice cul-de-sacs off Beaufort Road, in the Stapenhill area, on the Eastern edge of Burton. The whole development was primarily built in the 1980’s through the early 2000’s, and offers mostly larger executive detached houses and also modern semis and town houses. Interestingly though, over 83.2% or property is Beaufort Road area is detached, compared to 33.9% in Burton on Trent as a whole. Something that wouldn’t happen today with the price of land (there would be more semis and town houses)!

Anyway, he wants to purchase his first Buy to Let property and has noticed our previous articles, so was interested in getting to know the industry a little bit more. As he has lived in the Beaufort Road area for over 8 years and he felt comfortable investing in there as he knew it well, we started to discuss the property market in this area. Firstly, we found that of the 346 semi-detached and town houses in Beaufort Road area, 149 of them have sold and changed hands since 1999 (some up to 4 times!), so obviously a good place to buy and sell in.

Property values in Burton have risen on average by around 109% over the last 14 years, but most semi-detached properties on the Beaufort Road area have beaten that rise, rising on average by 122%. For example, a top of the range 3 bedroomed semi-detached property on Mcadam Close rose by 127%, from £58,000 in 1999 to £132,000 in the summer just gone – and this is one of many.

With excellent capital growth you would expect yields to be comparatively lower, but most two bedroomed properties on the development can be picked up from £100,000 to £110,000 and could have achievable rents of £525 to £535 per month. This means annual yields can be around an attractive 6%! Feel free to pop through the door of our offices on the High Street or send me an email to davidm@professionalproperties.co.uk