In today’s tough economic climate, in which increasing house prices and lack of mortgage availability are forcing more house hunters to rent rather than buy a property, it comes as no surprise that the number of people renting a home has risen by 40% in the past five years*. With bank savings accumulating little interest, investing in property for rental return alone is a highly attractive option. According to local estate agent Intercounty, City & Country Group’s Old Saint Michaels development in Braintree, Essex is indicative of this trend and is proving popular with savvy buy-to-let investors. Achieving high rental yields and strong capital growth, City & Country have noticed a rise in the number of investors looking to buy at the development; particularly now that the company has started offering a two-year yield guarantee, to remove the anxiety of securing suitable tenants.
Alan Oakley, Lettings Manager at Intercounty in Braintree, says: “Whilst the current housing market is more difficult than in recent years, and causing many investors to shy away from the buy-to-let market, homes with an interesting architectural history - such as those at the Old Saint Michaels site - generate a continual interest that will weather the economic storm, and makes them a good choice for landlords wanting a home that will attract a consistent flow of tenants. The attention to detail and high quality design of these properties enables them to achieve great rental returns, as a solid long-term investment.”
David Walker, Head of Sales & Marketing at City & Country Group, comments: “Recent statistics indicate that rental demand has hit a record high and people are being forced to rent for longer due to a lack of availability on mortgages. Savvy investors have realised this and we’ve recently seen a significant increase in the number of investors buying at Old Saint Michaels. These buyers recognise that low interest rates mean poor returns on cash left in a bank account and they therefore feel that putting their money into property is a better long-term bet.”
Converted from a former Grade II Listed Victorian workhouse and hospital, the Old Saint Michaels homes boast an abundance of period architectural features set amidst the very best in contemporary interior design. The development is proving to be a popular destination for buy-to-let investors, who recognise the solid returns these unique and historic properties can provide.
David continues: “In a market that is becoming increasingly saturated with new-build starter homes, the interesting and unusual properties at Old Saint Michaels stand out from the crowd. Properties at the site can achieve a yield of 6% gross; a figure that is particularly healthy for the area, and the reason why the development has experienced such keen interest from budding landlords. These homes are attractive to a wide range of renters, from local commuters to lock up and leave travellers, and it is this broad appeal that makes them a solid investment for both first-time landlords and those looking to extend their portfolio.”
David continues: “With the demand for rental properties at Old Saint Michaels exceeding supply, we are confident that rental demand for the properties will remain consistent in the future, and are currently offering a two-year yield guarantee scheme. This incentive ensures that landlords who purchase a buy-to-let home at the site will be guaranteed a yield of 6% gross for the first 24 months of ownership, to cover any time in which the property may become unoccupied.”
Situated only a mile from all the shops, cafes, restaurants and bars of Braintree town centre, residents at Old Saint Michaels are also within easy reach of Braintree station, which provides an achievable commute to London Liverpool Street of about an hour.
Prices at Old Saint Michaels start at £125,000 for a one-bedroom apartment, £195,000 for a two-bedroom apartment and £240,000 for a two-bedroom mews house. For further information of to arrange a viewing at Old Saint Michaels, please contact the on-site sales suite, which is open daily between 10am and 5pm, on: 01376 335 800, or visit: www.oldsaintmichaels.co.uk.