Following my December Newsletter Simon, a local design consultant got in touch with me to ask about house prices in Oxhey Village.  He’d bought a property there in 2012 and said that prices appeared to have gone through the roof in that area. This got me thinking about whether it’s still worth investing in the area or whether investors have missed the boat.
If you’re a local you’ll probably know the area but let’s break it down. It’s mostly made up of terraced houses that are 2-3 bedrooms and semi-detached houses.  There are not many flats in comparison and very few detached houses. As investors don’t ‘tend’ to buy detached houses for buy to let we’ll focus on the terraces and save the semi’s for another day.
Oxhey Village is a very popular area for families and professionals alike with sought after schools and fast links to London for commuters. And with a lovely friendly community and desirable housing stock it’s no wonder the area has experienced some dramatic increases in price recently.
According to Zoopla the house prices in this area have gone up 13.01% in the last 12 months and 27.81% in the last 5 years!  When looking at terraced houses the average sale price in Oxhey Village in 2014 was £354,608 compared to £278,759 in 2010 or £229,625 in 2009.
So clearly there has been some fantastic capital growth in this area and to be honest I don’t see why it won’t continue to increase although perhaps not quite as rapidly.  If you have property in this area then I’d suggest holding onto it. But would I recommend you rush out to Oxhey Village to look for your next Buy To Let purchase, perhaps not.
The average rent for a terraced house in this area during 2014 was £1141 so if you were buying to let in 2014 your average yield would have been 3.86% which is pretty low for the Watford area. In 2010 the average yield was 4.26% which was better so this is a classic example of an area where capital growth has exceeded the increase in rent which has brought down the average yield.
This area is popular, you will never have an issue selling your investment here, there is certainly potential for profit in the form of capital growth so have you missed the boat or was there ever even a boat to miss!  As with most investments you have to work out what’s right for you and then roll with it.

If you need help deciding what is the right investment for you then feel free to give me a call on 01923 375 300 or email james@caleyandco.com

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