Wimbledon Property Market – Good Yields?

With summer just around the corner and the Wimbledon Champions descending upon our town, many landlords who have available properties over the Wimbledon fortnight will utilize the opportunity to achieve strong rental yield and profit from the event.

So what kind of yields can you achieve from Wimbledon properties? For those who are new to the investment property game, the yield is the yearly rent from a property reflected as a percentage of the value of the property.

Starting at the lower end of the market, a small flat, depending on accommodation type can range in price between £250,000 and £350,000, whilst the rents achieved are in the early £900's and early £1,000's giving yields in the in the region of 3% to 4%. Considering property values in Wimbledon has risen nearly 14.5% in the last two years, that's an overall return of 18.5%.

A three bedroom property can be purchased for around £540,000 and they achieve rents in the region of £2,000 to £2,500 per month. This gives yields of around 5%. So surely the bigger property would be a better investment? Other factors must also be taken into account when buying property to rent out. Properties that require less maintenance will have less void periods and it will sell quicker when there is the need to sell the property.

This table illustrates a snapshot of property price ranges

compared to rent ranges of similar sized properties and the

gross yields that would result in Wimbledon

Property Type	Value Low High		Rent Low High		Yields Low High
Studios	￡229,950	￡250,000	￡850.00	￡1,150	3%	5.5%
1 Bed Flat	￡250,000	￡499,500	￡900.00	￡2,600	4%	6%
2 Bed Flat	￡285,000	￡995,000	￡1,150	￡3,034	4%	3.6%
2 Bed House	￡324,950	￡995,000	￡1,400	￡3,800	5%	4.5%
3 Bed Flat	￡380,000	￡1,100,000	￡1,530	￡5,850	4.8%	6%
3 Bed House	￡380,500	￡1,995,000	￡1,650	￡6,500	5%	3.9%
4 Bed	￡650,000	￡3,300,000	￡2,000	￡11,000	3.6%	4%
5 Bed	￡765,000	￡4,150,000	￡2,995	￡16,333	4.6%	4.7%

However, you must remember that every landlord's tax and interest rates are different and investing in property is a risk and values can go up as well as down, so research is essential when committing in property. Balancing capital growth and yields are important but they are not the only factors when investing in property.

Whether you are a landlord of or someone thinking of investing in rental market for the first time in Wimbledon please feel free to ask my opinion if it would make a good buy to let investment or just pick up the phone on 020 89476613 or email me on sam@masonandco.co.uk. I don’t sell property, but I can look at the whole the property market and as it’s in my interest to give you the best advice, as you might just ask me to manage it for you.