Time now for a quick round-up of what has been happening in the sales & lettings market in the Milton Keynes area throughout the whole of July 2014 (figures obtained from Rightmove and do not include private lets):
You can see from the rental figures above, that it is 1, 2 & 3 beds that are most in demand, with 2 beds being the most popular by some margin. If you look at sales, it seems 2, 3 & 4 beds are what people want to buy, this time it is 3 beds that win the race.
So, as an investment, what should you buy?
Well demand is there to rent anything up to 3 bedrooms, but there are already a high number of potential private purchasers chasing those same properties, so this will inevitably increase pressure on availability and start to drive prices up, whereas 1 beds are in a lot less demand by purchasers, yet these are often prized by renters. Our experience here tells us that 1 & 2 beds will always find a rental market, they will always rent out quickly but there will be more churn (turnover of tenants), and these will command a slightly higher yield than 3 beds. However, for families wishing to rent, 3 beds are a must, and in the catchment area of great schools (particularly secondary) they will always be in high demand and with less churn, and it is these properties that tend to offer better scope for capital growth in the long term whilst providing a steady yield of around 5-5.3% yield today.
If you would like some advice about buying to let, whether you are a landlord with an existing portfolio or someone thinking of investing in the Milton Keynes rental market for the first time, please email me on stephen.tunney@belvoirlettings.com or pop into our office on London Road in Stony Stratford.
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