A landlord I know has owned a few properties on Padgate Lane for the last twenty years. She came in to our office for a brew and we got on to discussing the rise and fall of property prices on the street – and more to the point, how this has affected her yield over the years.
In 1996, when she purchased her first property on Padgate Lane, the average value of a terraced house on the street was £75,349. By 2006, this had a sharp rise to £104,770. This rise in value slowed down and dropped, with average values being £101,102 in 2011 and slight increase of £103,100 in 2015.
At the height of the property boom in this area, a terraced house on Padgate Lane had an average value of £104,770. This soon dropped in 2011 to £101,102, with the average value decreasing to around £90,000 this year (average worked out on only two transactions, so not a true reflection of the
When she told me of the rents she had achieved on the street, they seem fairly stable over the twenty years. In 1996 - 2006 the average rent was £350 per month and is now between £450 and £550, dependant on the property’s condition. Therefore, a landlord could expect a respectable annual yield of around 7% on Padgate Lane, at the moment.
From this research, it shows that the landlord was achieving a yield of around 5% 20 years ago and is now achieving higher yields of 7% +. Although the terraced houses on Padgate Lane reached their highest value of £104,770 just before the crash, it doesn’t seem like the street has recovered much since then – while it is slowly on the up, you can still pick up a good deal on Padgate Lane.
If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Warrington Property Market, together with regular postings on what I consider the best buy to let deals in Warrington (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!
Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area feel free to pop into the office we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.
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