2 bed semi or 3 bed semi – Which semi-detached house should I buy in York?

Which semi-detached house should I buy in York? One of our landlords asked if they should buy a 3 or 2 bed semi-detached property to rent out to tenants. The first question I asked them was what are they looking for from the investment – capital growth in the property or a great yield?

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Answering this question will help you figure out which properties you should buy…  The average asking price of a 3-bed semi in York is £260,579 today compared to £211,174 for a 2-bed semi. The 3 bed semi achieves an average rental price of £1,005 per month compared to £790 per month for a two-bed semi.

That’s a yield of 4.49% for the 2 bed against 4.62% for the 3 bed. So surely, the 3-bed semi is, ever so slightly, the better bet?

While the 3 bed does offer a better rate of return, the 2-bed semi is slightly easier to rent out (meaning fewer void periods) and will be easier to sell in the future.

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It really comes down to getting the higher ‘Gross’ yield and taking a slightly higher risk on voids.  That being said, let’s not forget the level of capital appreciation that York semi-detached properties provide.

According to Zoopla, across a datascrape of 7,012 sales over the last five years, semi-detached properties in York have increased in value by approximately 18%.  In essence, a semi-detached house bought for £180,000 five years ago, would now be worth approximately £212,400.  This creates an opportunity all around for both existing landlords and owner occupiers.

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For landlords, there is the opportunity, to release additional equity to put towards another buy to let and increase their portfolio.  For owner occupiers, who would likely be on a capital repayment mortgage (and consequently, would have paid more of their mortgage down), there is a great opportunity to pull out extra equity to start their property investment journey.

If you would like more information as ever, drop me line.


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