Welsh valleys best place for landlords from London and Bristol to buy property and make a profit advises Telegraph
The Telegraph newspaper has pinpointed the Welsh valleys as the best place for landlords to buy up relatively cheap properties and make a profit renting them out.
The newspaper said that “investment can be fruitful” as a shortage of properties available to rent had led to a “bidding war among tenants,” with these areas attracting particular interest from London and Bristol.
“Yields are generally highest where house prices are lowest. Depressed property prices and high tenant demand in south Wales have boosted rental returns,” they said.
The newspaper highlighted Blaenau Gwent and Merthyr Tydfil as the best bet for areas where an investment of £25,000 would produce an average yield of 10%.
The Telegraph quotes Emma Liverick of Bidmead Cook Estate Agents who says that tenant demand in Merthyr Tydfil had reached “unprecedented” levels, with properties being snapped up within two days of listing.
“There is huge interest from investors, especially from London and Bristol, because soaring rents in the area are offering good yields, despite property prices also having risen,” she said.
“The lack of homes to let has pushed up rents massively in the past nine months. Where once a three-bedroom terraced house might list at £500 a month, the average is now between £675 and £700.”
Hamptons estimated how much income landlords could expect on each property type, after mortgage payments and a 10pc allowance for maintenance costs were deducted.
For Blaenau Gwent “landlords can expect rental income of £5,065 a year from a flat, after mortgage payments and a 10pc provision for maintenance costs, according to Hamptons,” the newspaper says. “Annual income rises to £8,168 on a terraced house.”
Alongside Merthyr Tydfil and Blaenau Gwent, the newspaper also advises that Hartlepool and County Durham in England is a good place to invest.
‘Control’
The Telegraph doled out the advice as campaigners warned that Wales was grappling with a housing crisis, with mortgages and rents driven beyond the means of many to pay them.
Cymdeithas yr Iaith have called for a Property Act which would control rent prices so that they are affordable for people on local wages.
Speaking at a rally last month, Chair Mabli Siriol said: “We need an effective Property Act that will take the housing and planning system out of the free market and put it under the democratic control of our communities.”
It was revealed yesterday by Zoopla that house prices have risen considerably more in Wales than elsewhere in the UK over the past five years.
Prices in Wales have risen by 35.1% over the past five years, 5.4% more than any other nation or region.
Support our Nation today
For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.
No more incomers in Wales 🏴 young people in wales can’t get on the housing market because of incomers it’s time for a new wales 🏴 vote Plaid Cymru 🏴
what a load of b******s. landlords aren’t “incomers”, they don’t come to wales to live here. it’s not an issue of people coming to wales from elsewhere, it’s about the rich buying up property so they can exploit the working class. i’m 100% pro-independence, always have been, and i won’t tolerate being associated with this kind of hateful bile about shutting out “incomers”. you spew much the same cartoonishly nationalistic crap in the comments on every article on this website, you’re always one of the first to comment, it’s often exactly the same comment, like you’re just copying and pasting… Read more »
i’d also like to point out that “b******s”, which was automatically censored in my comment, is no more obscene than “crap”, which wasn’t.
this was officially declared in a court of law, when the sex pistols won their 1977 obscenity trial over the title of their debut album.
“b******s”, when used in the context of “you are talking nonsense”, is officially legal and not obscene.
I used the word ‘hang’ as in suspend from a wall in my comment about the painting by Lowery in Culture section (have a look it is a masterpiece) and it was held back for approval. That is the only reason that I can think of !
I agree with your sentiments, we can not become xenophobic, Cymru is an open, welcoming country but that does not mean it should be mistreated and abused. Wanting independence should not be associated with nationalism. We need independence to improve the lives of the people living in Cymru not to wave the flag.
‘All people’
We respond to the Telegraph’s Charles Moore’s ill-informed bile and the Telegraph attacks our housing stock…don’t sell it and don’t buy it…
Someone have a word with Dion Dublin he has been at it for twenty years…
Hands off Cymru ! The people here have suffered enough without this new wave of plundering. And it is plundering, plundering the housing stock and pushing up prices out of reach of the already impoverished population. It will happen unless the Welsh Parliament acts to stop it. What’s happening in mainly tourist areas now, vacant, ghost town communities for much of the year, will start to blight the Valleys – we can not, must not let it happen. Drakeford – Act Now !
Independent tropical Merthyr is a most welcoming place.But if you seek to rip us off in order to fatten up your middle class white flight bank accounts, there are plenty of homeless here who would love squatting in your properties as soon as you’ve done them up nice.
squat the lot!
I live in the South Wales Valleys, in my opinion the issue is one of diversity. Migration in the valleys should aim create a diverse population. The ongoing increase in the volume of rental properties is creating a less diverse population in terms of personal/family income. The income level diversity I’d like to see involves people on high, average and low income levels living together in the valleys. There is currently a danger of the valleys having a population skewed towards people on low incomes.
parasites preying on the poor to get rich. nationalise the private rented sector now!
Mae Cymru ar werth. The problem here is that Welsh Labour are content with the economic paradigm as it stands in the UK. They have different words for it like “solidarity” and “fiscal transfer” and “insurance policy”. I call it disinvestment, de-industrialisation, a capital expenditure gap. I find it intriguing that Wales has a GDP and GVA gap with the roUK as well as the poverty and lower wages that go along with that. At the same time, the capital expenditure gap in Wales is of a similar percentage. I wonder why our productivity has not kept up. No wonder… Read more »
I have not had time to dig out the Torygraph article but I wonder if it bothered to mention that we have Rent Smart Wales which licences landlords and holds them to a degree of responsible conduct? The rules will also be changing shortly to make that reasonable conduct even more reasonable. I suspect that the ‘get rich quick’ Torygraph reader who might like to follow up on the advice will be put off by the need to either employ an Agent (more costs) or to take the exam. What the article does expose is the problem of low wages… Read more »