Landlords invest more money in property as house prices rise in Gloucestershire
Landlords are investing more money in property as house prices rise in the county, according to estate agents.
Andrews Estate Agents, which has branches across Gloucestershire, said becoming a landlord was becoming an "attractive proposition" for more people with increased tenancies and signs the property market is continuing to go in the right direction.
The Halifax House Price Index June to April 2013 shows national house prices increased by 3.1 per cent in the 12 months to June, with most regions seeing rises.
However, agents in the county have warned that London prices tend to over-inflate figures for the rest of the country and while they are increasing in Gloucestershire, the rise is less than that figure.
Debbie Franklin, area manager at Andrews, said recent sessions held for current or potential landlords at the agency's Gloucester branch revealed the majority of people wanted more information about becoming a landlord.
She said: "Becoming a landlord is a very attractive proposition for more and more people. With low mortgage rates – 3.39 per cent Andrews Mortgage Services in July 2013 - available it has opened the doors to people of all ages and it's a great way of generating an income for the future."
Debbie added the average annual rental yield – net profit from renting the property -– was six per cent in Gloucestershire according to Andrews' figures last month.
Meanwhile, Julian Farr, of Farr & Farr estate agents, which has offices in Gloucester, said: "Investors are prepared to pay more money. There have been more investors around for quite a long time but they wanted to purchase for around 85 per cent of a property's value. They are now paying a higher level as they are more confident the investment will be better.
"We have noticed house prices rise in the area. We have seen a visible increase but they are not month on month rises. Even parts of Gloucester vary. There are fluctuations but generally the market is moving upwards."