If you want to become a landlord, Nuneaton should be high up on your list of potential places to invest in. The area has plenty going for it, and as such, Nuneaton buy-to-let property is steadily rising in popularity.
Here’s a comprehensive guide about investing in a buy-to-let here.
Nuneaton is the county’s largest town, and it’s still steadily growing. It’s ideally situated for those who work in Birmingham, Leicester or Coventry, as all these cities can be reached in half an hour by train.
However, the town is much more than just a convenient place to commute from. It caters well for people of all ages, with excellent local amenities, good schools, a cultural scene, and some lovely green spaces. With all this on offer, it’s unsurprising that the rental market is performing well.
For investors, Nuneaton is an attractive prospect. There are several quality houses available to suit all budgets; from period properties to new-builds. Indeed, the fact that developers have been busy here is a strong indication of the area’s rising appeal. Property prices are another bonus, as they’re typically more affordable than the surrounding cities.
What are the prices like?
There’s a lot of variety on the property market in Nuneaton. At one end of the scale, you’ll find imposing detached houses with sweeping driveways and gardens, which are remarkably reasonably priced (anticipate paying £700,000 for a sizeable detached with land). Alternatively, there are good-sized one- and two-bedroomed apartments in purpose-built blocks, which can be snapped up for as little as £80,000.
At present, the price per square foot in Nuneaton is £1,624. By contrast, Coventry is significantly higher, at £1,833, and Birmingham is £1,837. When compared to the national average of £2,395, it’s clear to see just how much of a bargain Nuneaton buy-to-let properties are at present.
Changes to house prices
While the town remains reasonably priced, one thing is certain – the average value of a house is going up. At the moment, an average property costs £213,089 in Nuneaton. This is higher than it was a few years ago. In fact, prices have increased by 4.83% in just 12 months, and a staggering 24.04% in the last five years.
This rate of growth shows no sign of slowing, which explains why so many people are now investing in the area. Capital growth therefore is another reason why this area is an investment hotspot. Most experts agree that now is a good time to buy in Nuneaton, before the prices climb any higher.
Rental costs and yields
The town’s rental market is doing well right now, with increasing numbers of landlords investing in properties here. Most tend to generate between £250 and £1,000 a month in rent, with the average being £596 per month.
The most popular properties tend to be two-bedroomed homes; either apartments or houses. However, one-bedroomed and three-bedroomed homes are also sought-after, and it’s worthwhile keeping these in mind when you start your search.
The benefits of buy-to-let in Nuneaton
Here are just a few reasons why you should consider investing in a Nuneaton buy-to-let property:
- Jobs (and salaries). Tenants want to move into areas where their career prospects are good. Nuneaton not only offers easy access to three major cities; it also has a higher average salary than many other UK towns.
- Great schools. Renting families are always on the look-out for areas with high-performing schools, and Nuneaton has no shortage of them. For example, Higham Lane School was awarded ‘outstanding’ in its latest Ofsted report, and St Thomas More Catholic School and Etone College were both rated ‘good’.
- Transport links. There are two train stations in the vicinity; one in Nuneaton itself, and the other in Bermuda Park. In addition to the excellent train connections, residents benefit from easy access to many main roads, like the M6, the M42 and the M69.
- Entertainment. Tenants like to move into areas that have plenty of things to see and do. Nuneaton has no less than three leisure centres, and there’s also the Abbey Theatre and an art gallery. Add this to the wide range of restaurants, pubs and bars, and there’s lots of entertainment to keep the residents happy.
- Various property styles. Nuneaton has plenty of different architectural styles on offer, from characterful period buildings to modern apartment blocks. This enables you to select a property that’s ideally suited to your target demographic.
What to look for in a buy-to-let
When exploring the market for a property to rent, keep the following things in mind:
- What sort of tenant? Nuneaton is popular with all sorts of renters; from families with children, to young professionals looking for a base from which to commute to the city. Before you even start looking for property, identify what sort of person you want to rent to, as this will help guide your search.
- What areas? Once you’ve figured out who you’d like as a tenant, you’ll need to find the right area to invest in a property. A good estate agent can come in useful here, as they’ll have inside knowledge of the town. Some factors should be obvious – for example, families will want to be in the catchment areas of good schools, and workers will need to be near a train station. Check out the local amenities too.
- Make sure it’s the right sort of property. Has it got everything you need to appeal to your target tenant? For example, is there a garden for children to play in? Are there enough bedrooms? What about bathrooms and toilets; and what condition are these in? Consider what your tenant will be attracted by; for example, higher paying professionals may like to see state-of-the-art appliances and smart devices.
Buy-to-Let Factors to Consider
- Work out profit-margins (and your budget). It’s likely that your buy-to-let property will require some work before it’s ready for the market. It’s vital to factor these costs in before you commit, and to work out how much you can realistically expect to make from monthly rent. It might be worthwhile keeping in mind what you could generate from capital growth too, as you may want to sell the house further down the line.
- Get a letting agent. If you’re up for being a hands-on landlord, that’s perfectly fine. But be warned, it can be an all-consuming job! Most landlords tend to work with a local letting agent like Hawkins Estate Agents. We can assist with all aspects of the process; from attracting and vetting tenants to collecting rental payments.