I met with an existing Landlord this week who wants to buy another property to let and is keen to do so before 1 April.

As many investors are trying to do the same there is limited choice available in the one and two bedroom market that is going to give the type of return that they are looking for.
The average price of a two bedroom property in SO31 is now £229,700. The average rental is around £795pcm meaning that the yield for this type of property is now 4.15%. The Landlords looking at the short term return rather than the capital growth over a longer period are therefore starting to look at other options.

The average price of a one bedroom property in SO31 is currently £147,500. The average rental is around £625pcm meaning that the yield for this type of property is now 5.08%. This still makes one bedroom properties attractive propositions for Landlords.
One avenue I explored with my existing Landlord was the option of buying a larger property and converting it to an HMO to give him a better return. The average three bedroom property in SO31 is currently £302,100. To rent out the three bedrooms separately at £500pcm with communal use of the other areas would give an attractive return of 5.96%.

Naturally there are some expenses involved in making sure the property complies legally and obtaining a license from your local authority. But the option of an HMO could be one worth looking into if you want a decent annual return on your investment.

If you are thinking of investing in a Buy to Let property whether you are an existing Landlord or doing so for the first time please contact me to discuss on 01489 570011 or james.hill@brooklettings.co.uk.

You can obtain more information on HMO licensing in the Fareham Borough here:http://www.fareham.gov.uk/licensing_and_inspections/environmental_polution/hmolicensing.aspx