Does the number of bedrooms affect 'rentability' in Burton?

Last week, I spoke to one of my landlords and she asked me if the number of bedrooms in a property had any relationship to the return she could get. I did some research and followed up her query – I was actually quite surprised with the results…

Currently in Burton, the average rent for a one bed property is around £423 per month with an average value of £72,400. This means an approximate return/yield of 7% per year. This is of course, the average. There are one bed apartments on the market for rent at a higher price than some two bed apartments. In fact, some one bed apartments in Burton can attract rents of £500, if not more, whilst some converted terraced houses with flats in them can be rented for as little as £290 per month. This means yields on one beds can range between 5.2% and 10.2%!

Two bed apartments in Burton can be priced anywhere between £127,500 in one of those modern upmarket developments in the Grants Yard development (pictured) and as low as £50,000 on Alexandra Road (just off Ashby Road). Again, rents can be quite varied, ranging from over £850 per month for some bespoke unique apartments in the Anson Court development (off Horninglow Road) in Burton to £350 per month for a converted terraced house off Shobnall Street. However, looking at the average rent for a two bed apartment in Burton, I calculate it to be £496 per month with the average value being £82,700 which gives a return/yield of just over 7.1% per year.

Whilst there is a little difference in the yields when it comes to the number of bedrooms, it is only one of many factors you should consider before buying a property. Whilst two bedrooms are more expensive to buy, they will always let slightly better. Do they sell better? Well, 34% of the two bed apartments on the market in Burton at this moment in time are sold stc compared to 17% of 1 bed apartments – quite a bit of difference there.

It really comes down to the property and type of tenant. Two beds attract sharers, which brings both advantages and disadvantages to the landlord but one beds can be harder to sell (important as one day you will want to liquidate your investment).
It depends what you want from your investment. I know the lettings market in Burton so I can advise you what you can expect to achieve in rent and how it go up in value together. I don't make a penny out of you buying something, I make my money ensuring I can find the best tenants for the best properties.

Please feel free to pop through the door of our offices on the High Street, call me on 07973 666229, or email me at davidm@professionalproperties.co.uk

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