Littleover’s property prices rise by 35% more than those in the Pear Tree area.

Back on 26th February, I spoke about a conversation I had with one of my landlords who lives in Littleover and has property to let in the Pear Tree and Littleover areas. If you recall, in that article I said the annual yield/return from the landlords buy to let investments would be 7.3% per year if he were to buy a property in the Pear Tree area , but only 3.4% per year in Littleover.

We went on to talk about these yields and that they do not reflect the period’s when there is no tenant (and thus no rent). These void periods (where there is no tenant and thus no rent) are much higher in the Pear Tree area compared to properties in Littleover, but I also said property values over the last 10 years have also increased at a much higher rate in Littleover than the Pear tree area and it this I want to talk about in this article. I have an extensive database of all the property sold in Derby, going back to around the mid 1990’s. It enables me to spot trends in the local Derby market and give that advice and opinion to existing and new landlords alike. That database came up with some interesting information, which I shared with my landlord and now I want to share with you.

An standard terraced house, in the last 10 years in the Pear Tree area has risen in value by 47% on average whilst property in Littleover have seen their property values rise on average by 57%, a third more (35% to be exact) than Peartree’s. It gets even more interesting when some of the more modern 4 and 5 bed detached houses in Littleover have seen a rise of between 80% to 90% in that time. Like I said last week, annual yield/return is not the only factor when choosing an investment property, you should also consider how long it takes to find a tenant and the potential increase in its value.

I look at the whole of the Derby market and give you my advice and opinion to help you find the best investment property. It is in our interest that you buy a property which will rent well, and for long periods of time. If you would like any advice on choosing properties, come and see us at our office on St James Street or call me on 07977 235545.