Property of the Month – April 2019
|City||Horsham (Broadbridge Heath)|
|Type of homes||New 2 and 3 Bedroom Houses|
|No. of homes||14|
|Built||Completed in 2016|
|Gross rental yield||4.4%|
Why I like the Location?
Broadbridge Heath is a master planned development to the West of Horsham. Shopping needs are met by a Tesco Extra, Homebase and Halfords and there is a Primary School and Leisure Centre. The position of Horsham District remains a key strength.
The District is within touching distance of many areas of outstanding natural beauty, with the South Downs National Park running along the South of the District and the High Weald in the North. The beauty of the landscape sets Horsham District apart from other surrounding areas, adding to the desirability for businesses and individuals to locate here in the District.
Horsham is the main town within the District and is an important economic centre for the area, with a population of around 55,000 people, a good selection of shops, bars and restaurants and two cinemas. Horsham Station offers trains through Dorking or Gatwick into London.
What I like about the properties?
The Fund owns a mixture of 3 bedroom semi-detached and 2-bedroom terraced houses, and two 2-bedroom coach houses. They have been popular with tenants since acquisition, with 4 families who have stayed since they first moved in. Length of stay in the 2-bedroom homes is slightly shorter than in the 3-bedroom ones, with an average of 20 months occupation overall. Happy tenants who renew their tenancies and make their homes in the Funds properties are at the heart of a good investment.
How has it gone so far?
The housing market in the South East has been subdued since these homes were completed, and the rise in values has only been 2.7% with rental growth of just under 1%. However, as a national fund we have exposure to each major region, and as part of our allocation to the South East we are pleased that these homes have increased in value slightly through a difficult period and generate valuable income for investors. Long term locations in South East with vibrant local economies and commuting into London will always be popular.