With house prices going up, can you still get a good return on your money in Teddington...?

This was a question a rather drenched landlord (sans brolly!) asked when I met her at her property a couple of weeks ago.

If you are new to the market there are 190 properties on the market in TW11, the Teddington postcode which covers the majority of the town.  So, plenty of choice.  Starting with the smallest, studios range in price between £185,000 and £230,000 and there are only 3 on the market at the moment.  They rent for between £560pcm and £875pcm which gives an average yield of 3.98%.  

One bedroom flats cost between £174,950 and £425,000 and rent for between £795pcm and £1,495pcm.  At the lower price end that makes for a yield of 5.45% and on average a yield of 5.3%.  Carrying on this research shows the average two bedroom flat yields are not so good at 3.43%. We normally see yields lower for two beds than one beds as the demand is pretty high for one beds which keeps the price up. So, if you can find one, it seems the best return in Teddington would be on a one bedroom flat.

But, as I discussed with my landlord, if you look carefully, you can achieve a strong yield from a property in the Teddington area.

Rebecca Smith