Rightmove’s latest Rental Trends Tracker shows the top investor hotspots outside of London.
Stevenage is ranked number six!
In creating this league of investor hotspots, Rightmove takes in account each area’s capital price growth over the last year, plus the average rent that a landlord would have collected during the same time period.
Stevenage Property Investment Results:
Stevenage generated some impressive results:
– Average asking price, Q3 2014: £185,880
– Average asking price, Q3 2015: £220,294
– Average total rent collected: £9,751
– Total returns on investment: 23.8%
Its appeal is its diversity: a modern centre with a historic Old Town, plus great transport links and a thriving business community. This blend attracts young professionals who want quality rooms to rent.
“We’ve definitely seen the demand for rooms in HMO properties increase during the last year,” says Martin Roche of HMO Property Sourcing. “It’s great to see that Stevenage has been recognised for the great property investment opportunity it offers.”
The figures from Rightmove suggest that the rental affordability ceiling in North London has been reached. (Rental increases of just 0.2% compared with 1.6% in Q3 2014.)
“Many properties in Stevenage are ideal for converting to HMO,” adds Martin. “When we source properties, we always look for potential regarding capital growth, rental return and optimum capacity after conversion.”