- House Prices
There are currently over 1,000 leasehold flats in the Telford area. This only represents around 4.2% of the housing stock here, with the national average now being nearer to 20%, and the fastest growing type of new housing to be built in recent years is flats.
The average price of flats with one or two bedrooms in Telford sold during 2020 is around £109,000, which is a 1.87% increase compared with the previous year.
You can buy a one bedroomed coach house apartment in The Nettlefolds, Hadley for £79,995 with 112 years remaining on the current lease. Taking into account the ground rent and service charges currently payable, with an achievable rent of £495 per calendar month this equates to a 6.4% gross yield. Obviously, every landlord’s tax and mortgage interest rates differ, so these need to be taken into account while calculating the net yield.
Finally, let’s not forget about the potential increase in capital value of the property which, on average. According to local research house prices have risen by an average of 5.1% during the last six months in the Telford area.
And with the recent news about the Government intending to scrap ground rents and offer leaseholders the right to extend their leases, now might be a good time to invest in flats!
If you would like some advice about what could make a good investment, please contact me on 07967 209011.