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There has been a buzz surrounding Peterborough for some time, following announcements of various development plans taking shape in and around the city. Peterborough, which was previously best known for having good transport links to bigger and brighter nearby cities, is undergoing a huge period of regeneration with a recent announcement made by Peterborough City Council declaring that UK and overseas investors are backing an impressive £130million regeneration plan.

 

Read more at the BBC here;

http://www.bbc.co.uk/news/uk-england-cambridgeshire-26229020

 

The redevelopment plan will see several key areas of the city centre set to be rejuvenated which will undoubtedly deliver new jobs, homes and outlooks for people living in Peterborough and generate interest from outsiders hoping to take advantage of our 45 minute commute to central London.

 

Another boost for the cities image was being crowned the fastest growing city in the UK, followed closely by Milton Keynes, which has helped to enhance the confidence of local, national and overseas investors in the cities potential to deliver.

 

Based on figures collected last year, and as reported by the BBC, the annual change in house prices in Peterborough is up 10.8% compared to national average of 6.84%. When this growth is coupled with house prices which are below the national average and a strong demand for rental properties, Peterborough offers profitable buy to let solutions.

 

With all of these exciting plans and projects in the pipeline and to take advantage of a city on the up, I believe that now is the time to invest in Peterborough!

 

For an informal discussion to learn more about potential returns, property selection and areas to invest, please get in touch

 

Emma

 

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Hi Emma

 

Interested in Peterborough as relatively local - what sort of prices/returns are you seeing there?


Jason McClean

The Property Insurer

07734-113554

 

http://www.thepropertyinsurer.co.uk

http://www.thehomeinsurer.co.uk

http://www.smartlandlord.co.uk

 

The Property Insurer has one aim only – to be the leading specialist price comparison insurance website in the UK, providing the very best and most appropriate property insurance cover at the keenest price.

 

That’s our aim and we are not a big conglomerate that has hungry shareholders, we are a small company that is taking a long term sustainable approach to business that we think is responsible and will work for everyone we deal with, whether broker, insurer or customer.
Not being a conglomerate is a good thing for us all as we do not have huge overheads or costs to cover – that means lower cost of insurance for you.
Any comments or suggestions are gratefully received, please send to Jason@thepropertyinsurer.co.uk. Jason is a Director so when you get through to him, you can be sure you are speaking with someone who wants to listen and will do so very carefully.

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Likewise, I only currently invest in Northampton but looking at other areas to diversify my portfolio.  What sort of returns are you seeing in Peterborough Emma? 

 

Hi Jason - I see you're Thrapston based; do you invest there or more widely.  Any tips? :)

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I own a 1 bed flat in the Woodston area of Peterborough and having been monitoring the City and surrounding area for the last year or so my view is that Peterborough prices are extremely cheap compared to somewhere like Cambridge which, considering its only half an hour away, is quite a surprise.

My 1 bed flat is valued at about £69k and I get £495/m. With ground rent of £10 per year and Maintenance / Insurance at £175 for 2014-2015, this aids the profit.

Having been keeping an eye on the market, prices aren't increasing a great deal but there is a huge demand for rental properties. Decent 1/2 bed flats can be found for £65-85k and would achieve rents of £425-£525 a month and similarly 2/3 bed houses can be found for £95-£125k with rental figures ranging from £500-£650/m depending on property, location, etc.  Therefore there is the potential of decent yields but minimal capital growth.

Hope that helps  :) 


TPH-Chris-Barnard.jpg

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Hi Wes

 

I've got three properties in Kettering and one in Thrapston. I like investing local as you are never too far away. Typically I go for three bed family homes as I like to target middle class families as tenants for reliability and property maintenance reasons.

 

Peterborough sounds interesting but I would not be interested in flats, just houses.


Jason McClean

The Property Insurer

07734-113554

 

http://www.thepropertyinsurer.co.uk

http://www.thehomeinsurer.co.uk

http://www.smartlandlord.co.uk

 

The Property Insurer has one aim only – to be the leading specialist price comparison insurance website in the UK, providing the very best and most appropriate property insurance cover at the keenest price.

 

That’s our aim and we are not a big conglomerate that has hungry shareholders, we are a small company that is taking a long term sustainable approach to business that we think is responsible and will work for everyone we deal with, whether broker, insurer or customer.
Not being a conglomerate is a good thing for us all as we do not have huge overheads or costs to cover – that means lower cost of insurance for you.
Any comments or suggestions are gratefully received, please send to Jason@thepropertyinsurer.co.uk. Jason is a Director so when you get through to him, you can be sure you are speaking with someone who wants to listen and will do so very carefully.

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Interesting to read what you're both doing Chris and Jason!

 

I've done some research on Peterborough tonight and agree that on the face of it, property values look far lower than I was expecting with reasonable rental values.  I am definitely going to focus my search on this area now, the yields are very strong and the ROI looks very good too in the region of 11-13%!

 

I had heard Peterborough was about to go through a significant regeneration project.  Do either of you know if this is confirmed and going ahead?  Might be the right time to get involved!

 

Jason - like you, I currently am a big fan of 3-bed houses for families.  They stay longer, tend to look after the house more and in my experience always pay the rent on time.  I do have one flat though and the benefit with this is the lack of maintenance required.  You know you're not going to have to put a fence back up or replace roof tiles after a stormy night! :)

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Peterborough is a good city, great train links and lots of amenities. I think there is a buzz and I'll be checking estate agents myself given some of the experiences mentioned above.


Jason McClean

The Property Insurer

07734-113554

 

http://www.thepropertyinsurer.co.uk

http://www.thehomeinsurer.co.uk

http://www.smartlandlord.co.uk

 

The Property Insurer has one aim only – to be the leading specialist price comparison insurance website in the UK, providing the very best and most appropriate property insurance cover at the keenest price.

 

That’s our aim and we are not a big conglomerate that has hungry shareholders, we are a small company that is taking a long term sustainable approach to business that we think is responsible and will work for everyone we deal with, whether broker, insurer or customer.
Not being a conglomerate is a good thing for us all as we do not have huge overheads or costs to cover – that means lower cost of insurance for you.
Any comments or suggestions are gratefully received, please send to Jason@thepropertyinsurer.co.uk. Jason is a Director so when you get through to him, you can be sure you are speaking with someone who wants to listen and will do so very carefully.

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Sorry to resurrect an older post, but I've just joined the forum and am interested in Peterborough as an investment area.  

 

I live near Cambridge, and the returns in Cambridge for buy-to-let are not good if you're just buying in.  Property prices have increased a lot over the last 3-5 years but rents have lagged behind.  Having lived around here for 15 years I can see the growth in Cambridge in terms of new build, jobs growth and the rental demand.  We rented a place last year in Cambourne whilst we refurbished a house nearby and there wasn't much choice of property to rent, and what there was seemed to move quickly.  

 

Is it the same story in Peterborough with regard to rental demand, or do properties sit vacant for longer?  I'm seeing quite a lot to rent on Rightmove in the 2 bed apartment sector.  I'm also a bit concerned that there are quite a few blocks of apartments for sale in Peterborough as the investors are looking to sell out completely.  Should I be concerned, or is it simply a case of someone selling for personal reasons?  A few investors at the same time could be just a coincidence, or is there a fundamental issue I've missed?

 

Is there an over-supply of apartments and are 3 bed houses the way to go in Peterborough?  Any advice appreciated, and happy to pass on what I learn on the way.

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For the first time in over a year I've had estate agents calling offering me tenanted property for sale. More than twice in the last week alone.

 

I think landlords are already trying to ditch properties before they become a tax problem in 2017 onwards. I am considering doing the same myself. Maybe that's what's happening in Peterborough.

 

Unless you can buy a property outright, with the new tax laws, why on earth would you invest in rental property?


Jason McClean

The Property Insurer

07734-113554

 

http://www.thepropertyinsurer.co.uk

http://www.thehomeinsurer.co.uk

http://www.smartlandlord.co.uk

 

The Property Insurer has one aim only – to be the leading specialist price comparison insurance website in the UK, providing the very best and most appropriate property insurance cover at the keenest price.

 

That’s our aim and we are not a big conglomerate that has hungry shareholders, we are a small company that is taking a long term sustainable approach to business that we think is responsible and will work for everyone we deal with, whether broker, insurer or customer.
Not being a conglomerate is a good thing for us all as we do not have huge overheads or costs to cover – that means lower cost of insurance for you.
Any comments or suggestions are gratefully received, please send to Jason@thepropertyinsurer.co.uk. Jason is a Director so when you get through to him, you can be sure you are speaking with someone who wants to listen and will do so very carefully.

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I agree that getting only 20% tax relief on interest expense has spooked a few investors. Perhaps this will push down prices in some sectors as existing investors look to get out = More supply.  

 

But I don't think they will achieve the prices being asked as the demand from new investors will not be there.   For anyone new buying in, you have to factor in 20% of your mortgage interest cost as an additional expense and this just depresses net yields.  The gross yields on offer will have to increase to make these properties attractive to new investors, even if you don't need a mortgage.  Rents probably won't increase in the short term so prices will have to fall. 

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Hi Mark

 

More worrying is that your net rental income is taxable, without being allowed any mortgage interest expenses.

 

So earn £12,000 in rent and pay £10,000 in mortgage. Traditionally you'll pay 20 or 40% tax on £2000 profit. Now you are paying 20 or 40% tax on £12,000 regardless of profit.

 

And that £12,000 is added to your allowances, so once you hit £43,000 you go to 40% tax. Anyone with more than one property and on average wage will be into the 40% tax bracket quickly...

 

That's what's spooking investors I expect.


Jason McClean

The Property Insurer

07734-113554

 

http://www.thepropertyinsurer.co.uk

http://www.thehomeinsurer.co.uk

http://www.smartlandlord.co.uk

 

The Property Insurer has one aim only – to be the leading specialist price comparison insurance website in the UK, providing the very best and most appropriate property insurance cover at the keenest price.

 

That’s our aim and we are not a big conglomerate that has hungry shareholders, we are a small company that is taking a long term sustainable approach to business that we think is responsible and will work for everyone we deal with, whether broker, insurer or customer.
Not being a conglomerate is a good thing for us all as we do not have huge overheads or costs to cover – that means lower cost of insurance for you.
Any comments or suggestions are gratefully received, please send to Jason@thepropertyinsurer.co.uk. Jason is a Director so when you get through to him, you can be sure you are speaking with someone who wants to listen and will do so very carefully.

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