One of the final chunks of
census data has recently been released by the Government, and for those of you
who like to look at RTW housing market, it is a treasure trove of information.
Information is so important when making decisions on what (or not) to buy when
investing in property. A few weeks ago, I was discussing the roads around Rustall
and Showfield’s Road. Today, I want to look at the area around the Sherwood
area on the North Eastern edge of Royal Tunbridge Wells. The census data allows
anyone to look at the data for housing estates or areas, but even better down
to individual roads. Such information allows us to weigh up potential hotspots
in the rental market and show potential landlords where there could be an
opportunity.
There are, in the Sherwood
area of Royal Tunbridge Wells, 7,249 people living in 3,001 properties. It is
the home ownership percentages that really got me interested, as it is this
information, tied in with our intimate knowledge of the market, where we can
match tenant demand to an under supply of rental properties. Of those 3,001 households in Sherwood, 23.4%
own their property without a mortgage (compared to the 32% Royal Tunbridge Wells
average) and additional 29% households own their property with a mortgage
(again the Royal Tunbridge Wells average is only slightly higher at 33.7% and
that includes all the posh villages!).
However, the thing that
surprised me was the low level of private rented property. Normally, when you
have low percentages of home ownership, the renting is high. However, this is quite
the opposite in the Sherwood area where 8.2% (or be exact 245 households) are
in the private rented sector (compared with the Royal Tunbridge Wells average
of 15.7%). The reason being is that the Sherwood area has a high proportion of
social housing, in fact 36.7% or 1,101 households are under social housing
ownership and as a large proportion of the existing home owners bought their
properties from the Council it does not give much room for the private rented
sector in Sherwood. With such excellent demand from homeowners and tenants,
this could be the right area to purchase your next buy to let investment, as average
yields in the Sherwood area are in the region of 5%-6% and Sherwood’s values mostly
performed well over the medium to long term.
Therefore, if you are
considering buying a property for investment in the near future, I am always
happy to give you my considered opinion on which property to buy (or not as the
case may be) to give you what you want from your investment. If you are a
landlord, new or old, we’re certainly more than happy for you to pop in and see us
at our office's on Vale Road for a chat or email me direct on david.rogers@martinco.com
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