A report produced this week by ARLA (Association of Residential Letting Agents) showed the national average rental yield is 4.9% (the same report also says the average length of a tenancy is currently 19 months).<\/p>\n
I suspect many landlords in Central Somerset fail to match this number unless they have a HMO (House of Multiple Occupation) where yields can be as high as 15%-18%.<\/p>\n
The rental yield is calculated by multiplying the monthly rent received by 12 and dividing the result by the price paid for the property.<\/p>\n
The report did get me thinking about the yields typically achieved in Central Somerset and which specific areas or property types are most likely to beat the national average.<\/p>\n
If you were to buy the mythical average house in Glastonbury and get the mythical average rent you could expect a yield of 3.3%. Street does slightly better at 3.8% whilst Shepton comes in at 3.54%. In Glastonbury, the best average yield is in the Glastonbury St. Johns ward were the average is 3.9%. The Moor ward (Ashcott, Moorlinch, Shapwick areas) has the highest average yield in Central Somerset with 4.8%. Not very exciting numbers I am sure you will agree though in reality no serious investor would be content with paying the average price for a property and achieving the average rent.<\/p>\n
Flats give best yields<\/strong><\/p>\n When we look at property types, the statistics start to look more interesting. In Glastonbury flats have an average yield of 5.65% and generally produce better yields than other property types. The one exception is terraced houses in the Glastonbury St Edmunds ward which return on average 5.89% from an average asking rent of \u00a3825 per calendar month.<\/p>\n Across the Brue in Street the pattern is similar with flats proving best for rental yields with an average yield of 5.44% with the best average in Street West (5.9%).<\/p>\n The highest average yields in Central Somerset can be found from flats in Coleford and Holcombe (7.84%), Creech (7.41%) and Wells St Cuthbert\u2019s (6.4%).<\/p>\n Buying flats always comes with a wealth warning as service charges, ground rents and sinking fund contributions can eat into any profits.<\/p>\n Exceptions to the above include the Postlebury ward where the average yield on a semi is 6.4% whilst detached properties in the Moor ward return an average yield of 6.1%.<\/p>\n Lots of stats to digest but what this does illustrate is if you are thinking of investing, consider carefully the area and property type and don\u2019t accept average!<\/p>\n","protected":false},"excerpt":{"rendered":" A report produced this week by ARLA (Association of Residential Letting Agents) showed the national average rental yield is 4.9% (the same report also says the average length of a tenancy is currently 19 months). I suspect many landlords in Central Somerset fail to match this number unless they have a HMO (House of Multiple […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1,4,3],"tags":[93,95,94,34,91,78,92],"_links":{"self":[{"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/435"}],"collection":[{"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=435"}],"version-history":[{"count":1,"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/435\/revisions"}],"predecessor-version":[{"id":436,"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/435\/revisions\/436"}],"wp:attachment":[{"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/glastonburypropertynews.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}