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.
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.
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