A vast number of properties in Coventry continue to be snapped up by budding investors from across the UK who are seen to be taking advantage of their high yields.
With properties returning a yield of up to 13.5%, investors from London and the Home Counties are being wooed to Coventry to capitalise on the region’s highly profitable property market.
According to experts at Coventry’s oldest estate agents Loveitts, the increase the number of investors coming from outside the region has steadily increased over the past 12 months – as recorded in a survey conducted during one of their by-monthly auctions earlier this year.
The focus of buy-to-let investors has shifted away from London in recent years, where both rental and housing prices are in decline due to current political uncertainty and the growing housing demand within the country’s capital – resulting in investors looking north in the hope of locating greater yields.
Recording a record yield for a property sold by Loveitts, 220 Burnaby Road in Coventry returned 13.5% of what it was bought for each year, generating £19,800 per annum.
An ideal investment opportunity, the three-to-four-bedroom tenanted property resided in a popular residential area and featured a garden to the front and a garage to the rear.
Another property within Coventry that returned a promising yield was a tenanted two to three-bedroom terraced property situated on St. Margarets Road, Stoke, Coventry.
Returning a yield of 8%, the terraced property generates £14,860 per annum, features a rear garden and resides in a highly sought-out area of Coventry.
Loveitts Director and Auctioneer Sally Smith commented: “The fact that investors are coming from outside of the Coventry area to capitalise on the high yield rates demonstrates the potential of the local area.
“Coventry has always been a sought-after area for property investors within the region due to its reasonable property prices and its well-known status as a university city. With two highly populated universities and several corporate giants such as JLR and Severn Trent nearby, rental properties within the city’s borders have consistently churned out high yield rates over the years.
“Warwick University is reportedly set to spend £400 million over the next four years to cope with its predicted growth and figures show that Coventry University has increased student numbers by 24% since 2014/15. This rise in the region’s student population has factored into the amount of high-yield properties up for grabs in recent years as there is a growing demand for suitable housing within a relatively compact radius.
“With yields from our sold properties reaching as high as 13.5%, investors are witnessing a healthy return on their investment that is well above the average, so it comes of no surprise that seasoned investors from London and the South” are seeking to grasp bargain deals within the Coventry area.”
Sally continued: “The competitiveness of the London property market in recent years has caused house prices to soar ahead of rents. With investment fever driving property prices up by more than 50% over the past five years, rents have simultaneously only risen by 10% over the same time period, causing yields to reduce.
“As a result of this we see this trend of investors coming from outside the region looking to invest in a Coventry property set to continue.”