Milton keynes, MK12 5BN | Investment Property for Sale | VES-MK12-001

Opportunity to purchase 2 flats and the freehold in Milton Keynes earning £19,080pa and gross yield of 4.9%

£390,000

Block 2 Units

VES-MK12-001

INITIAL INVESTMENT

£176,640

GROSS RENT / YIELD

£19,080 / 4.9%

NET RENT / YIELD

£14,295 / 3.7%

ADD TO FAVOURITES

The block

TENURE

Freehold

NO OF UNITS

2

TENANCY STATUS

Tenanted

FURNISHED

No

TOTAL SQ FT

1,323

PRICE SQ FT

£295

Opportunity to purchase the freehold and two 2-bed 2-bath flats

Tenancy Information

  • Flat A: currently tenanted with a family who have resided since 14/07/2017

  • £1150 deposit being held by Deposit Protection Service

  • AST expires 11/01/2020

  • Flat B: Vacant and being marketed actively

Note: we are awaiting AST documentation

Please contact us for a bespoke financial analysis, documents or any other questions.

Market Trends

Sales Trends

  • House prices in MK12 postcode have increased 31% over the last 5 years (-1% over the last 12 months) and are £235,000 which varies by property type (£132,000 for a 1-bed flat to £335,000 for a 5-bed detached property). On average, there have been 16 properties sold per month in the area in the last 12 months.

  • In comparison, prices in the wider Milton Keynes MK area are £286,000 (+1% over the last 12 months) and range between £153,000 for a 1-bed flat to £543,000 for a 5-bed detached property.

Rental Trends

  • Rents in MK12 are now at £890 per month (£10,680 pa) (a growth -2% over the last 12 months). On average, there have been 11 properties listed for rent per month in the area in the last 12 months.

  • Given prices in the MK12 area, on average gross yield is currently 5.4% which is higher than the national average of 4.7% and the wider Milton Keynes MK postcode area of 4.5%.

  • This property is currently achieving a gross yield of 4.9% which is 10% lower than the area.

Source: REalyse - 29/05/2019 Note: prices and rent are median and averaged over the last 12 months, unless stated. Data sourced from c. 20 different sites and agents.

Documents available on request, please contact for viewings or further questions.

The information relating to the property is supplied by the vendor and the latest available at the date of listing.

Certain information may expire or become inaccurate over time and should be verified by the purchaser’s solicitor.

Financials

Rental Income

GROSS RENT PER ANNUM

£19,080

Equivalent of £1,590 per calendar month (PCM).

GROSS RENTAL YIELD

4.9%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£14,295

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

3.7%

Gross rent per annum minus fully managed operating costs divided by the purchase price.

FULLY MANAGED OPERATING COSTS

£4,785

The total estimated sum of expenses calculated annually assuming a fully managed service.

Click to understand assumptions.

Disclaimer

This information is for illustration purposes only and does not constitute advice. It is correct at the time of writing. For advice specific to your personal circumstances, please speak to a financial adviser.

About Milton Keynes, Buckinghamshire

  • Milton Keynes is a large town in Buckinghamshire, England, about 50 miles (80 km) north-west of London.
  • Built during the UK Government's push in the 1960’s to relieve housing congestion in London, with a target population of 250,000
  • Over £1 billion of private investment has been committed in the last decade, transforming the city's skyline with new architecture, developing the infrastructure needed and creating an unparalleled air of optimism throughout the city.

Property

  • Milton Keynes property prices have increased in recent years, despite housebuilding keeping pace with the city’s growing population, however the average house prices in Milton Keynes are lower than many of its neighbours, despite ongoing economic success.
  • Business relocation is one of the main drivers on the local property market, with house prices increasing by over 8% per annum, making Milton Keynes one of the ten fastest growing places in the country, according to Hometrack. Average rental yields have also increased, now standing between 4.5% to 5%.

Population

  • At the 2011 Census, its population was almost 230,000; the Office for National Statistics estimates that it will reach 300,000 by 2025.
  • One of Britain’s fastest growing cities by population; the population has grown by over 17% between 2005 and 2015 and expanded its job base by 33,000, a growth of almost 25%.

Business / Economy

  • Milton Keynes has one of the more successful economies in the UK, ranked highly on a number of criteria. Between 2010 and 2016, it’s business base grew by an amazing 34%.
  • One of the UK's top five fastest growing centres, it has benefited consistently from above-average economic growth.
  • It has the fifth highest number of business start-ups per capita and it is home to several major national and international companies.
  • Home to more than 150 head office operations, representing diverse industry sectors including consumer finance, retail, banking, industrial products, financial technologies, IT outsourcing, leisure and social care including.
  • HQs include: Volkswagen Group, National House Building Council (NHBC), Domino's Pizza, Aston Martin Red Bull Racing, Makita, Mercedes-Benz, Xero, Rightmove Group, Suzuki GB, Volkswagen Financial Services and Yamaha Music Europe GmbH.

Schools

  • Milton Keynes College offers bespoke and innovative training courses and apprenticeships for local businesses, such as Red Bull Racing, NiftyLift and the Foreign and Commonwealth Office.
  • Milton Keynes is working towards having its own new university, MK:U. The university, to be led by Cranfield University, will work closely with local businesses to ensure that students gain both a degree and experience relevant to the needs of the local economy.

Connectivity

  • Milton Keynes is located at the very heart of the UK, and is the centre point between London, Birmingham, Oxford and Cambridge.
  • Road and rail connections are just 35 minutes by train from Central London.
  • Milton Keynes is served by international airports such as London Heathrow, London Luton, London Stansted, Birmingham and East Midlands, all of which can be reached in 90 minutes.

What makes us different?

Vesta’s sole purpose is to make buying and selling rental property easy for both landlords and tenants.

Benefits include:

  • Buy tenanted property
  • Huge choice for all budgets
  • View property performance data
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Questions?

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