Thursday, 28 August 2014

Prices Boom, Bust and Boom again but Yields remain constant in Seaford Road, Crawley

A few weeks ago I featured a 3 bedroom house in Seaford Road, Crawley that I thought would make a good investment.  Interestingly I have just let one of these houses for a landlord who owns a number of properties all in the same road and I checked back through the records to discuss the rise and fall of property prices on the street and how this has affected the yield over the years.

In 2001, when he purchased his first property on Seaford Road, the average sold price of the 3 bedroom terraced houses on the street was £105,000. This rose sharply to £144,500 in 2004 and continued to rise to £150,750 by 2006.

At the end of 2007, in the height of the property boom, the same terraced house on Seaford Road had an average value of £177,000. But along came the crash and sold prices fell back by over £20,000, land registry data shows the average sold price in 2011 was just £154,000.

The land registry sold house price data for 2014 will verify every media report about a housing market recovery (or boom depending on which media you read).  There have only been 2 sales recorded this year but the average sold price has rocketed to £185,000, surpassing the previous property highs of the 2007 boom and do not look like slowing at any time soon.

We trawled through the dusty Martin & Co archives to look at the average rents achieved on the street and they have done nothing but rise.  In 2002 the average rent was £750 per month and is now £975 per month.  Despite the obvious fluctuations in price the yield has barely changed in the last ten years, it was 6.6% in 2004 and in 2014 the yield is now 6.3%.

For any landlord who has kept hold of their property in Seaford Road it has been a solid investment.  Prices have gone up, come down, gone up again but with 10 years of consistently achieving a yield of over 6% it is still a road to consider investing in.

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