Do properties in Avonmouth make good buy to let investments? · 24/12/2023
Last week a landlord popped his head through our door at our offices on Whiteladies Road. He lives in Westbury Park and is considering buying another buy to let property to add to his portfolio. He wanted to know my thoughts on Avonmouth. As everyone knows, Avonmouth is the port and suburb area of London and is located on the Severn Estuary at the mouth of the River Avon. Interestingly though, of the 5,323 properties in Avonmouth (and Shirehampton) only 262 of them are detached (or 4.92%), compared to 5.97% average in London. As one would expect in this part of London, the majority of houses are semi-detached or terraced in nature with 2,117 semi detached houses and 1,752 terraced houses, the remainder being made up of flats/apartments and a small number of temporary structures (i.e. caravans).
Anyway, he is eager to purchase his first buy to let property and has noticed our previous articles, so was interested in getting to know the industry a little better. As he has lived in Avonmouth for over 18 years and he felt comfortable investing around there as he knew it well, we started to discuss the property market in this area. With my local knowledge, I was able to tell him that there are plenty of terraced and semi-detached properties there, the larger ones can be bought for around £150,000 to £180,000. The terraced houses tend to rent for between £850 and £975 per month, giving an average yield of around 6.5% per year. Also, since 2000, properties have on average risen by 145.9% in value in Avonmouth, which when you consider the London average property value increase is only 129.4% over the same time frame, it is good news all round!
So with a great yield and excellent capital growth, properties in Avonmouth, could make a decent future investment.
If you are someone thinking of investing in the London rental market for the first time, drop by our offices on Whiteladies Road in Chelsea for advice on where the bargains are in London, or tel: 0117 974 4997 email: clifton@intire.co.uk