Coventry is one of the top ten places to invest in property
Despite George Osborne announcing an additional 3% Stamp Duty to be levied on the purchase of additional properties in his 2016 Budget, investing in property can still be profitable, and Coventry is one the top ten places to invest in property according to an analysis by property website Property118.com – Top Ten Best Places to Invest in Property in the UK
The North West of England topped the tables as the most lucrative area to invest in property to achieve high rental yields; and with four renters vying for each property, there’s no shortage of demand.
Cities such as Cardiff and Coventry also command excellent rental yields, due to relatively low property prices.
The full list of the top ten rental yields is shown below:
- Manchester 6.02%
- Liverpool 5.16%
- Cardiff 5.10%
- Coventry 5.02%
- Oldham 4.98%
- Sunderland 4.97%
- Luton 4.91%
- Southend-On-Sea 4.87%
- Outer London 4.86%
- Rochester / Medway 4.79%
The relatively low (compared to other major UK cities) property prices in Coventry may change, but the Coventry property market offers good value for buyers and sellers alike. Coventry has a good stock of affordable housing that is within the reach of most private buyers and buy-to-let investors without resorting to specialist mortgages or the bank of Mum and Dad.
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Coventry a new property hot spot?
Coventry has been mentioned in the press recently as one of several places where initial asking prices are being reduced in a sign that the feverish property market is finally starting to cool down.
This is according to the online property portal Zoopla, which found that across the UK 29pc of homes currently listed for sale have cut their asking prices at least once since the property was first listed.
In Barnet, in north London, the average amount sellers are willing to knock off the price of their homes is £120,969. However, Barnet is something of an outlier: the next highest price reduction is Coventry, with an average cut to asking prices of £27,320: an average of about 10% off the initial asking price.
Lawrence Hall, a spokesman for Zoopla, said: “The rise in the average discount to more than £25,000 should be welcome news for aspiring home owners looking to get a foot onto the property ladder.
“Despite increasing house prices across the country, there’s clearly still space for negotiation.”
Foster Lewis and Co view
We at Coventry estate agents Foster Lewis and Co see the Coventry property market as being reasonably healthy and we have not had too much difficulty in selling houses in the current climate without resorting to cutting prices as suggested by some of the national press. Much of that is down to our excellent local knowledge in setting a fair price for the buyer and vendor.
One final word of warning with respect to buy-to-let investments: past performance is not a guide to future performance. The value of the investment and income from it can go down as well as up and can’t be guaranteed.
See this link for more information: Mapped: where are the new property bargains in the UK