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Letting is still an attractive proposition

By Sali Brown

Managing Director

Chelton Brown

WITH the imminent unveiling of the new university campus, Northampton has become increasingly popular with buy-to-let investors, although it is fair to say that the borough as a whole is proving an attractive proposition.

It has been known for many years that London prices are simply not achievable for many investors and their attentions have turned to towns and cities within an hour or so of the capital and in that sense, Northampton ticks all the boxes.

Good rental figures can be achieved, offering an attractive return on investment, even in the areas where house prices are slightly higher. So, a one-bedroom flat is likely to attract a rent of around £600 per calendar month, rising to £695 for a two-bedroom flat, and a two-bedroom house £725 to £750 depending on the area. A three-bedroom house could rent at anything up to £850.

Outside of the town centre we are finding that areas such as Grange Park, Hunsbury, St Crispin’s and Wootton are becoming increasingly popular with buy-to-let landlords. House prices have increased, particularly in Hunsbury and Wootton, but the better rental figures make it a worthwhile investment, even with the recently announced increase in the interest rate and further rises on the horizon.

The county’s housing plan is very positive, set to bring employment to the area, and along with it the need for short and longer term rented accommodation. New properties bring new first time buyers to the market as well as a growing number of investors who find property investment offers by far a better return than other investments.

I believe that the property market is very stable with steady capital growth. In the medium to longer term, the fundamental driver of rents will be the balance between demand and supply for rented property. We expect demand in the private rental sector to continue to grow in line with demographic changes such as population growth and as affordability concerns remain in the house purchase market, so it is important that we see efforts to support supply.

Having been in the lettings industry for over 40 years, Chelton Brown possesses the experience to advise and guide potential investors, help find tenants and manage their properties once tenants are in residence.

If you would like more information about letting, selling or property investment, call Chelton Brown on 01604 603433.

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