Maitland Park Villas property market outperforms the West Heath Road area property market by 93%

Following a discussion with a local landlord who lives in the West Heath Road area of Hampstead, we got chatting about his two buy to let properties in Hampstead. He wanted some advice on where to buy the next one in Hampstead, so I did a comparison between the different parts of town, but it was particularly interesting when we compared his own area of the West Heath Road area to the Maitland Park Villas area (where one of his Hampstead buy to let properties is, being one of those two  bedroom ex-local authority apartments). He was surprised to find that, when I told him, the property market in the Maitland Park Villas area had outperformed the West Heath Road area of Hampstead by 93%!

Let me explain why. The average price of a two bedroom apartment on the Maitland Park Villas Estate is £377,800. When you consider the rents that are achieved in the Maitland Park Villas Estate are an average of £375 per week this gives us a yield of 5.16% per year. So is the Maitland Park Villas Estate the best investment? Well, in the West Heath Road area, where the average value of property in the area is £3,342,000 and the average rent for such property is £1,721 per week, this gives a much lower yield of 2.66% per year. That makes the yield/ return in the Maitland Park Villas Estate 93% proportionality more than property in the West Heath Road area, so surely it is the best investment, isn’t it?

However, this is a great example of annual yield/return not being the only factor when choosing an investment property, as you should also consider how much the value of the property goes up in the long term. In the last 16 years, property values have risen on average by 164.7% in the Maitland Park Villas Estate (rising from £142,700 to the £377,800 mentioned above), which is very impressive considering there was the 2008 property crash. However, average property values for property in the West Heath Road area have risen on average by 238.9% in the same time frame.

So, if you are investing in the Hampstead property, do you want capital value or yield or both? If you would like some advice about buying to let, be you a landlord with a portfolio or someone thinking of investing in the rental market, please come and see me at our office on Heath Street, Hampstead or please visit the Hampstead Property Blog for more advice and opinion like this.

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If you are looking for an agent with experience that can help you find the right tenant for your property, then contact us to find out how we can get the best out of your investment property. Email me on chris@ashmoreresidential.com or give me a call on 020 7435 0420. Pop in for a chat – we are based on Ashmore Residential, Suite 7, 25-27 Heath Street, London, NW3 6TR. The kettle is always on.

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