3 bed semi Vs 2 bed semi in Warrington 2016

I hope you are enjoying the lovely weather as I have a strange feeling by the time I finishing writing this, the thunder clouds will be over the skies of Warrington and we will have an evening of rain!

Last weekend my family and I took a trip to Southport. It’s been a long time since we have all been to Southport beach. The tide was in and about 2,000 people were attempting to sunbathe on a metre of sand.

I was on bag watching duty, while my wife and kids decided to queue for a ride, when I noticed a couple staring at me. Eventually, the chap walked over and asked me if I write the articles on property in the Warrington Guardian Newspaper.

One of the things that stands out about what Darren asked me is: Which size property is in most demand in Warrington? Is it the 3 bedroom or 2 bedroom house?

Changes in the Warrington Property Market

It’s been almost two years since I started the Warrington Property Blog, so the property market in this short time has changed.

However, if you can cast your mind back to my first Newsletter, I only had 2 very small articles on it. One of the articles was ‘3 Bed Vs 2 Bed in Warrington’. Almost 2 years on I thought I would write this article again and compare the 2014 numbers to today’s – to see exactly how much the property market has changed.

So the first question to ask yourself is: What are you looking from your investment? Capital growth or great yields?

The numbers now

Answering this question will help you figure out which properties you should buy.

The average asking price of a 3 bed semi in Warrington is £160,000 today compared with £134,950 for a 2 bed semi. The 3 bed semi achieves an average rental price of £675 per month compared with £600 per month for a 2 bed semi. That’s a yield of 5.3% for the 2 bed against 5% for the 3 bed.

So surely, the 2 bed semi is the better bet? While it does offer a better rate of return, the 3 bed semi is slightly easier to rent out (less void periods) and will be easier to sell in the future.

Now looking back in 2014 this is how the numbers stacked up: (click here to see article)

3 bed semi = £157,950 with average rent of £650pcm = 4.9% yield

2 bed semi = £125,000 with average rent of £550pcm = 5.3% yield

So as we can see the average property price for a 2 bed semi has gone up nearly 10k in value… However not much has changed for the 3 bed semi. The numbers also show that the 2 bed semi in 2016 has a much more increased rent value than the 3 bed semi. But, the yields remain pretty much the same.

These are average figures used from one of the biggest property portals (RightMove). However, property investment deals can be found in Warrington that reach larger yields such as 8% – 10%. The key is knowing where and when to look.  This is something we do for all our investors at Hamlet Homes. We are a team of landlords ourselves so we know exactly what to look for when investing your money – whether that is capital growth, high yields or a bit of both.

As always, if you would like to send any deals you have seen online over to me or you would like to pop in and have a chat, then you can either email me on manoj@hamletwarrington.co.uk or call on 01925 235 338. Our address is 6 Bankside, Crosfield Street (opposite Iceland and Aldi – so plenty of parking available). The kettle is always on and we will even pull out the posh biscuits!