The private rented sector is an essential component of the UK housing market, and with the number of tenants having doubled since 2004, demand for rental properties is still overwhelmingly high.
For landlords or investors looking to expand their portfolio, auctions are by far the most accessible route to buying a tenanted property. As well as the speed and certainty of sale that auctions offer, landlords can also benefit from immediate rental income.
The Assured Shorthold Tenancy (AST) is the most prevalent type of tenanted property at auctions and across the UK. It’s proven to be a reliable tenancy format for landlords due to its dependable income stream, while tenants benefit from stable accommodation for six months or longer.
In March’s livestream auction, we have some fantastic, tenanted investment properties set to go under the hammer. For buyers looking to invest in Norfolk, three separate lots in Thorpe-Next-Haddiscoe offer tenant stability with the potential for future uplift.
Situated amidst scenic farmland in the NR14 postcode, the trio of semi-detached cottages boast a picturesque view and ample space with off-road parking facilities. The existing tenants all have a history of long-term occupancy, providing a great level of stability. With rental prices having remained unchanged for several years, an opportunity also exists to enhance future earnings.
50 miles away in Suffolk, Flat 11 on 163 Wherstead Road, Ipswich is an excellent investment opportunity. With established tenants, this two-bedroom property on the fourth floor offers a prime location just south of the town centre. Currently rented out at £700 per calendar month (£8,400 per annum), the property is keenly guided at £65,000 and £75,000 (plus fees), making it an ideal option for potential buyers looking to make a stable investment.
Investors looking for a larger property in Ipswich are encouraged to take a closer look at 4 Littles Crescent, IP2 8DP. Situated to the south of the town centre, this Victorian terraced house offers three bedrooms, two reception rooms and good-sized garden space. Recently remodelled, the property is well-maintained throughout, and is currently let at £750 per calendar month (£9,000 per annum).
With a low guide price of £130,000 - £150,000 (plus fees), this terraced property offers a near 7% annual yield.
In a rare investment opportunity, a regulated tenancy property will also be going under the hammer in March’s livestream auction.
Affording tenants the privilege and security of lifelong residence, properties subject to regulated tenancies remain extremely sought-after by investors focused on the long-term capital growth of a building.
While there are numerous advantages to purchasing a property with a regulated tenant, including a minimized risk of vacancy and the potential for a lower purchase price, it is crucial to conduct thorough research and have a comprehensive understanding of the laws and regulations that govern these properties.
Regulated tenancies are subject to ‘fair rent’, which is set by the Valuation Office Agency (VOA). In most cases, the rent will be significantly less than rental values for the same kind of property with an Assured Shorthold tenancy (AST) in place.
Although the potential for rent increases will be restricted, prospective buyers are guaranteed a stable and predictable rental income. And, for those prepared to adopt a longer-term approach, there is the enticing potential for future value appreciation when the tenancy ends, and the property can be sold.
15 Rackham Road, is going under the hammer with a very keen guide price of £50,000 - £60,000 (plus fees). Situated to the north of Norwich, within walking distance of local shops and amenities, the mid terrace property is currently let to a protected tenant paying a registered rent of £430pcm (£5,160pa).
With a diminishing number of regulated tenancies in the UK, and even fewer being offered on the market, 15 Rackham Road presents an exclusive opportunity for landlords looking for an alternative investment model.
If you’re looking for your next tenanted investment and would like to find out more about our properties on offer, please contact our team on 01603 505 100 to arrange viewings before auction day.
