Hazells & Marham Park
Marham Park, for those who are not local to Bury St Edmunds is a development of new homes on a 40-acre site, with varying homes built by six different developers. The site aims not only to provide new homes but also a village feel with the addition of services, amenities, and leisure facilities. The location is a good one, with easy access to the A14 arterial road whist still being close to the historic town of Bury St Edmunds.
Hazells have been instructed to let a number of houses situated on Marham Park with the majority purchased specifically as investments. What is it that makes new build property such a good and popular choice for a buy to let investment in the modern lettings market?
The first thing that becomes apparent is that new build properties are highly attractive to the tenant market. Prospective occupiers appreciate a modern, bright, and spacious house which is often economic to run and without that certain air of wear and tear that an older property may have.
The second and arguably most important benefit to a new build investment is that you can be certain that it will fully comply with the raft of legislation which has to be considered before letting out a property. As a newbuild it will have an excellent rated EPC (Energy Performance Certificate), future proofing against anticipated tougher legislation. It will also have an Electrical and Gas Safety certificate and will meet or exceed the requirements of the Homes (Fitness for Habitation) Act 2018.
In the same vein, another plus point for new build vs older properties is that the need for maintenance within the first five years or so is going to be noticeably less, with NHBC warranty cover, the housebuilders own warranty and appliance and boiler warranty too. This all adds to keeping the costs down meaning net yields are better.
Talking of yields, looking at a recent purchase of a four-bed property on Marham Park bought for £415,000 we achieved a tenancy for 12 months paying £1700.00 pcm. This gives an initial gross yield of 4.9% (excluding purchaser’s costs), which is an attractive return in current market conditions, especially when the net yield is likely to be proportionally better due to lower maintenance costs. We also liked that we had a good number of applicants, which offered a broad choice of tenant to consider as most appropriate for the property.
Clearly, there are a number of pros to new build investment and with more development in the areas surrounding Bury St Edmunds planned over the next few years there will certainly be further opportunities to invest.
If investment of this nature is something you are considering, please do not hesitate to contact us for further advice and guidance.
As always, if you would like specific advice on any aspect of lettings please do contact either Chris or Andrew on 01284 702 626