During a recent visit to a landlord on Jesmond Street, we discussed the dynamic property market in Folkestone, the rise and fall of property prices on her street and how this will have affected rental yields over the past few decades, so I thought I would share this information with you all in a short blog.
In 1998, when she purchased the property, the average value of a 2-bedroom terraced house on Jesmond Street stood at £38,000. By 2005 there was a sharp rise to £125,000 further continuing to rise in value to an average of £139,500 by 2007.
Property values on this road slightly dropped in 2013 to an average of £96,201, but then again rose to £105,000 in 2017.
Fast forward to 2022 and values have steadily increased year on year with the average value increasing to around £242,000 in 2022 when the last property on this road was sold. Currently at the time of writing this blog there is one property on market for sale on Jesmond Street at £220,000.
The upward trajectory in property values in the past few decades indicates a promising investment opportunity for landlords in the area as similarly, rental values on Jesmond Street have experienced an increase over the years.
Rental Yield in Folkestone, Jesmond Street
From an average rent of £550 per calendar month in 2005, rents climbed to £700 per calendar month by 2019. Today you would expect to achieve £1100 per calendar month for an unfurnished 2 bedroom terraced house on Jesmond Street.
Considering the current market conditions, a well-presented, 2-bedroom terraced house on Jesmond Street could potentially fetch around £250,000, translating to an estimated minimum annual yield of approximately 5.28%.
These figures suggest a favourable outlook for landlords looking to capitalise on the thriving property market in Folkestone.
If you’re considering an investment in Folkestone, and would like expert guidance on which areas produce the best rental yields, please don’t hesitate to reach out to discuss the market trends and current values.