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
“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
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