When purchasing a buy to let property, there are two ways landlords make money through property letting – capital growth and rental income growth.
A landlord from Upper Batley, who has a number of properties in both Morley and Batley, asked me a few weeks ago about the difference between Morley and Batley housing markets. He was focused on capital growth but also wanted to ensure his yield was relatively fair. I was quite surprised with my findings and wanted to share them with you.
The average property price in Morley is currently £161,798. In the last 12 months property values in Morley, according to my calculations, have risen by 0.86%. Whilst in Batley, average property prices are £133,324, having risen by 2.28% in the last 12 months. Therefore, is Batley the better bet?
Well, not necessarily.
Over the last 5 years, property values in Batley have risen by 2.97% and in Morley by just over 17.8%, meaning over the last 5 years, property values have increased at an incredible 501% quicker rate in Morley compared to Batley.
But then there is question of yield, Morley does tend to provide a slightly better yield than Batley but property is more expensive in general so you would need to invest quite a lot more capital in the first place in order to achieve those yields.
Each Morley (and Batley) landlord will have different needs and requirements in his or her property investment. If you want an unbiased opinion on what (and what doesn’t) make a good property investment. Knowing what has happened to values in different towns, enables us to spot any trends or opportunities for buy to let landlords.
If you would like to discuss my thoughts on the rental markets, feel free to give me a call on 0113 436 4360 or send me an email to firstname.lastname@example.org