Property of the Month – January 2019
Alan’s property of the month
The area to the North of Bristol has seen a great deal of investment in employment centres, the Cribbs Causeway Retail centre and new housing. Initially this was based around Bristol Parkway Station and Patchway. Following the closure of Filton Airport in 2012 an ambitious further development has commenced.
Type of homes: New family houses
No of homes: 3
Built: Acquired as Show Homes in 2012, now let on Assured Shorthold Tenancies
Gross rental yield: 4.48%
Why I like the Location?
Everyone who lives in or visits Bristol knows what a great City it is. Patchway is a suburban location, close to the M5 and has its own railway station, and good local employment especially aerospace and manufacturing. The two universities, a major teaching hospital and a wide range of employers in financial and professional services, make for a vibrant employment market.
Patchway and Charlton Hayes are immediately to the East of Cribbs Causeway and north of Filton, and offer a wide range of good quality family homes. They make a good counterpoint to the Fund’s new flats in the City Centre.
What I like about the properties?
The Fund acquired two three-bedroom town houses in Patchway, and one large detached five-bedroom family house in Charlton Hayes. All three have been popular with tenants. As the Brabazon redevelopment of the old airfield continues the area should increase in propularity.
Energy efficiency is also good with all three having a rating of B, the second highest, which is above average for the UK.
How has it gone so far / rents etc/ ?
Rents are around £1,100 per month and the flats have proved popular with good occupation figures. Rental growth has been positive, and has averaged 2.3% in the two years since acquisition.