Part one: why should you invest in Newmarket?


Lemontree’s guide to investing in Newmarket: Part one.

Part one: why should you invest in Newmarket?

Whatever route you choose to become a landlord, it’s important to find an agent that has a thorough understanding of the local property market. At Lemontree Properties, we have over five years’ experience offering exceptional lettings services to landlords within a 10-mile radius of Newmarket.

It’s important to consider your investment as a long-term one by committing to at least five years. At Lemontree, we’ve supported our landlords right from the start, when we began in 2009, and we’re happy to say they are all still valued clients.

This six-part guide sets out exactly why you should consider investing in Newmarket. Over the next year, we’ll explore the type of property you should rent out, the rate of return you can expect, your options for financing your investment, and the tax implications.

Thanks to recent developments in the property market, landlords can now hold buy-to-let properties within their pension. Nationwide, long-term house price growth has reached an impressive six per cent per year, and average house prices have risen by more than seven per cent in the past year, making buy-to-let an attractive proposition for most, particularly in Newmarket.

Investing in property has paid off substantially for many people, particularly in terms of capital gains. However, it is important that you begin your research with an open mind, acknowledging the potential advantages and disadvantages. We’ll guide you through the process, helping you explore the endless opportunities for a successful landlord venture in Newmarket’s rental property market.

In comparison with Cambridge, Newmarket offers impressively low average rental prices for tenants. Within Cambridge city centre, the average monthly rent for a two-bedroom flat comes in at £1,300, whereas in Newmarket, tenants will only pay an average of £700. As for houses, the average rental price for a two-bedroom home in Newmarket comes in at £750 per calendar month, in comparison with £1,900 in Cambridge. 

Not only does the town represent a solid, long-term investment in an ever popular location, but the progressive growth and popularity is testament to the commutable distance to Cambridge and, from there, London.  With so many military families from RAF Mildenhall and RAF Lakenheath in the area, the market is steady and constant. The transfer of personnel from Mildenhall to Lakenheath in 2020 will ensure the market remains strong. By having the military in and around Newmarket, it has raised the rental potential on all larger three-bedroom properties, which has a positive effect on the level of return for investors.

For further information on investment opportunities in Newmarket, or professional advice, contact Beth Barnham on 01638 661 375.