Second homes

Whether for profit or pleasure, handled well a second property can offer sizeable financial reward

secondhomes

Quote Locations with good road and rail links are high on the list of desirables for tenants Quote

Nick Dunning

Measure up

‘Investor buyers will need to consider yields and should avoid buying too big a property. A well-appointed two-bedroom home may offer the best yields. For example, a two-bedroom holiday cottage worth around £250,000, in good order, can generate a 10% yield. Also, don’t be tempted to buy a big garden that requires a lot of maintenance — a patio or paved courtyard might prove more practical.’ Jonathan Cunliffe, Head of Residential, Savills Truro

Look ahead

‘Buy in a place where changes that are happening will make it more attractive in the future — with higher rents and house prices. Do your research to avoid areas that are overhyped — look for areas that are becoming more fashionable.’ David Lawrenson, author of the UK’s bestselling property book Successful Property Letting

Get connected

‘Locations with good road and rail links are high on the list of desirables for tenants, making these types of places reliable for buy-to-let investment.’ Nick Dunning, Commercial Director,Countrywide Group

Time it right

‘With holiday homes, the most important factor to study is time: the time it takes to get there. A five-hour journey there and back can take the gloss off a weekend away. For landlords, it’s the length of the season, which can vary enormously. In Cornwall, for instance, this can range from locations with lettings seasons stretching to 40-plus weeks, to others that barely last 20.’ Jonathan Cunliffe, Head of Residential, Savills Truro

Remember your advantage when it comes to negotiating. As a chain-free, buy-to-let investor, you represent the same desirability as a first-time buyer.

The figures

Increase in property values in 2013 for UK properties

Region Average return
Scotland 6.6%
Midlands 6.5%
Wales 6.4%
East 6.2%
South East 5.9%
North 5.8%
South West 5.7%
Central London 4.8%
Bedrooms Average return
1 6.8%
2 6.4%
3 6.1%
4+ 5.4%
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£15,000