Bournemouth see’s greater house price increases than London?

It seems everywhere I go, all I hear about is how London is outperforming every town in the UK in terms of house price inflation. Yes, it’s true that key areas of London have seen seemingly large increases in property values, but could Bournemouth be experiencing something even greater?

I was actually talking to one of my landlords last week about this very thing. There’s a lot of doom and gloom in the papers for landlords; tax changes, stamp duty increases, wear and tear allowance disappearing etc etc... It led us on to the discussion of what is going to be the incentive for Buy To Let (BTL) Landlords in the next 5-10 years. Rental yield will always be important. It is after all what pays the mortgage and rental costs. But Capital Gain is something which can really impact an investment decision. But does that mean we all need to go and invest in London now?

According to Rightmove; “During the last year, sold prices in Bournemouth were 7% up on the previous year”. If you have your house valued last year at £200,000, it’s now worth £214,000. Let’s go one step further and imagine you have a 75% Loan To Value (LTV) mortgage on your property. Your Return On Investment (ROI) is a whopping 28%. It’s hard to think of any other investments you could make that would provide you with that kind of return – and all just as a by-product of your rental property.

Now London, according to information published by Rightmove; “In the past year house prices in London were 3% up on the year before and 15% on 2013”. Yes, I know, some areas of London such as Brixton have seen double digit growth, but the point I am making here is that it’s very easy to presume other areas of the country are outperforming and miss the opportunities close to home.

Some data suggests that over 50% of landlords invest within 15 miles of their main home. This doesn't really surprise me, as why would you not invest in the area you know? If anything, I think too many landlords are getting persuaded to risk their money in places they don't know. The main reason I have set up this blog is to educate people. Share my knowledge and experience about where, when and how to invest in Buy To let. This is so that you don't get caught into the trap of risking your money by investing in the wrong areas. Property trends no longer relate to towns or even roads; knowing what side of the road to invest on can make such a huge difference to the return on your investment. 

As I said to my landlord, there are some fantastic deals to be made here in Bournemouth, and we have the time to take full advantage of this while everyone else talks about London! In fact, subscribe to my blog and every day between Monday and Friday I will post up about a fantastic investment opportunity for you to look at.

I hope you have found this article interesting, please navigate around my blog for some more useful articles and guides about property investment in Bournemouth.

If you would like to get in touch, please give me a call on 07979123970, send me an email luke.marchbanks@belvoir.co.uk, or pop in to our sparkling new office for a coffee!