Happily, the rental sector in Cheltenham is buoyant for most types of property.
Apart from its beautiful Cotswold location, local history, and Regency architecture, the town is home to many major employers, from the University, to Safran, GE, GCHQ, the military and Messier Dowty, all of whom attract a steady influx of professionals and their families into the town needing to find accommodation.
So, what factors should you consider to help you decide?
The first consideration is usually whether you want to buy a house or a flat.
A house gives you more control over your finances because you won’t have to accept the terms stipulated by a managing agent or freeholder, nor will you need to pay their extra service charges and contribute towards their repairs fund. However, this factor alone may not automatically translate into higher yields: flats are, after all, typically cheaper to buy and their upkeep costs tend to be lower.
If you choose to buy a flat then remember that both basements and top-floor flats can be less popular with renters: basements because of security concerns and top floors because of the stair-climb, particularly if there’s no lift. Renters are less attracted by the views from the penthouse after they’ve had to carry their shopping up three or four flights of stairs.
Remember, also, that any lift is likely to raise your service charge because of the extra maintenance and repairs it may need. Plus, if it frequently breaks down then you may find it becomes less of a draw and more of a bone of contention for your tenants….
Many people love character properties and, of course, Regency buildings have that in spades. But they can be more expensive to buy and maintain.
That said, while a more modern property may be more affordable initially, in 10 years or so, the property will have aged and its maintenance requirements will probably have increased so that saving could be a short-term gain.
Either way, it’s worth making sure you are buying a property which is solidly built and structurally sound.
The size of property that you buy can make a material difference to the type of renter you attract. For example:
· One- to two-bedroom houses and flats are in high demand among young professionals in Cheltenham
· Two- to three-bedroom houses are popular with young families
· Three- to four-bedroom houses for older/larger families
· Larger four- to five-bed houses are popular with higher income families, notably military personnel who are not looking to put down permanent roots
(Gloucestershire is home to the headquarters of NATO’s Allied Rapid Reaction Corps with personnel from 22 nations) and professional families. Morgan Associates has very good links to the military search agents and liaison officers in the area, who are responsible for housing new and overseas personnel, should this be a road you would like to go down.
Where you buy will almost certainly make a material difference to the attractiveness of your property to prospective tenants and to how much rent you can charge.
When Mumsnet asked its readers for the best wards in Cheltenham, top of many people’s wish lists were Charlton Kings and Leckhampton. Other, more central wards, like Bath Road, Tivoli, and Montpellier were also popular.
Prestbury has also proved a good draw for those looking for somewhere more rural, but still close to the town.
Hopefully this gives you a few pointers.
It’s always helpful to have a chat with a lettings agency first to find out more about trends and property hot spots, whether you’re a first-time landlord, or looking to increase your portfolio, contact our expert team for advice!
