Frome – Page 4 – Glastonbury Property News

With demand for property in central Somerset being what it is today, there is a lot to be said for considering the buy-to-let market in the area. Many people are priced out of the property market and this means that there is significant demand for rental options, which is a good way for many people to generate income.

If you are thinking of purchasing a buy-to-let in central Somerset, here are our top tips.

Do your sums for a range of outcomes and know your budget

Before you commit to any move in the property market, you need to know all about your finances and what you can afford. You should know your budget inside out, which means you have to be honest about all of the income you receive and all of the money you spend. Some of the steps you need to consider when calculating sums include:

What mortgage you can afford
How much leeway you can afford if you fail to rent the property out
What rental yield you expect to earn and what rental yield you need to make a profit
What other costs are associated with buying and maintaining a rental property

These are all questions and calculations you need to work out before you commit to purchasing a buy-to-let property.

Know what sort of landlord you want to be

Do you want to be a hands-on landlord, providing personal support and services or do you want just to receive income? These are both valid options when it comes to operating as a landlord but if you are keen to be the latter type of landlord, it makes sense to find a reliable property management company in the area you want to buy.

Working with a specialist firm who has experience of the area you want to let property will increase the likelihood of finding good tenants, of bringing regular income and minimising the risk and stress associated with a buy-to-let property.

Research and know the area

If you are local to central Somerset, or you know the area well, you will have a head start when it comes to local knowledge. Local knowledge is essential because this helps you to determine the best areas, it allows you to offer advice to tenants and it means that you come across as someone that can be trusted and relied upon.

Of course, to make the best decision, you want to have local knowledge of the property market. Knowing the average property prices and the expected rental yields for the different areas of central Somerset will allow you to make a more informed decision about what area is best to invest in.

Buying property is the biggest decision people make in their life so make sure you carry out the research that is expected with such a major decision.

Know who is most likely to be looking to rent the property

You will also find that different areas are more suitable for certain tenants. Central Somerset has proven itself to be an area that is welcoming for families with young children and this may well be the demographic that is more likely to buy a home. Therefore, investing in a home that is appealing to this style, say a three bedroom house as opposed to a one or two bedroom flat, will increase the likelihood of renting the property out.

Understand it is okay, and sensible, to seek help

Operating as a landlord is a major task and many people underestimate how much work is involved in the process. It is sensible to seek help to ensure you provide the best standard of service that you can. Whether this means knowing which local handymen and professionals to trust or which local property management firm will provide the best standard of service, knowing who you can rely on will make the process of investing in buy-to-let properties in central Somerset so much easier.

Hopefully these top tips will help you in the purchase of buy-to-let properties in central Somerset.

About Tom Morgan

Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk

For the buy-to-let investor the yield or the amount of rent received as a percentage of the capital invested in the property is the all-important statistic to focus on. However, we cannot ignore capital growth which is the ‘icing on the cake’ especially as high yields are sometimes hard to achieve.

I was scanning through the latest price paid data published by the Land Registry when a client popped into the office and asked the question which parts of central Somerset have seen the greatest capital growth in recent years?

Looking back over the last 10 years, the area that stands out overall is Frome where the price paid for property is now 25.88% higher than it was 10 years ago. It is not surprising when you consider Frome was not so long ago voted one of the best towns in the UK to live, according to the Sunday Times.

There has always been an undercurrent of resilience and progression in Frome – vintage shops before they became the trend, a green movement, a vibrant arts scene. But it is increasingly surpassing itself. Not only does Frome have the market, which is to the west country what Brick Lane is to London, it has a booming cafe and food culture, pubs have been reopening, independent shops arrive and stay and what were once crumbling old beautiful buildings are now creative arts hubs. Featured recently on Countryfile, Frome really could become the market town of the future.

Of particular note in Frome is the capital growth of flats that have risen nearly 40% in 10 years while terraced properties have also fared well rising 35% over the same period.

Heading West to Street property prices have done well here too where buyers today pay over 20% more for property than they did 10 years ago. Of particular note are detached properties that are now selling on average for 28.4% more than they did 10 years ago while terraced properties now sell for 26.12% more over the same period. Street has seen many changes in the last 10 years and as well as being the home of C&J Clark International and Millfield School is a vibrant and fast-growing village.

The Best of the Rest

Elsewhere, terraced properties in Wells are now 24.14% more expensive than they were 10 years ago while detached properties in Glastonbury have risen over 23% in the same period.

Whilst my analysis is limited to averages and past performance is no guide to future performance it does give a general indication of what areas and property types may be on the up in terms of capital growth.

A Look at Postcodes

A more detailed and meaningful analysis of the Land Registry data is limited by the volume of transactions recorded but a look at postal sectors provides further insight to those areas with the highest capital growth:

BA2 7 – Farleigh Hungerford, Woolverton and Norton St Philip areas of Bath – rise of 95.77% in 10 years
BA11 5 – Ellworthy Court, New Road, Southfields in Frome – risen 56.78% in 10 years
BA6 8 – Baltonsborough, Butleigh and in Glastonbury the areas South of the A361 and East of Wells Road have seen a rise in average price of 36.95% in 10 years

Property experts will tell you that the growth prospects of a property can vary by property type and even what end of a street the property is on so local expertise is vital when choosing an investment property.

Category: Frome Page 4 of 7

Purchasing a buy-to-let in Central Somerset? Our top tips

Do your sums for a range of outcomes and know your budget

Know what sort of landlord you want to be

Research and know the area

Know who is most likely to be looking to rent the property

Understand it is okay, and sensible, to seek help

About Tom Morgan

Which parts of central Somerset have the highest growth in property prices?

About Tom Morgan

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