It was reported that terraced houses have become the most popular purchase for landlords looking to rent out their properties. Terraced houses have long been seen as the ‘first step’ home for many people as they proceed to climb on and up the property ladder. Property prices still remain generally quite high, despite the conflicting reports of figures rising and decreasing. Of the ‘cheaper’ properties to purchase, terraces are a common example although their prices are continuing to rise as demand increases.
Target Tenants and Key Features
The main demographic of people who rent terraced houses are young families, young professionals and students. For new families there is just enough space to live in the house comfortably before their children get closer to double digit ages. For professionals and students, the property serves more as a base to store their things and sleep as their time will be spent mostly out of the house.
Terraces commonly have two lounges, a small back yard and some even have downstairs bathrooms. One of the lounges can be converted into another bedroom which is appealing to students and professionals. In addition to this, the lack of outdoor space and a downstairs bathroom tend not to be a concern, unlike with families.
A universal appeal of terraced houses is their proximity to high street shops and transport links as they tend to have a high concentration of these amenities nearby.
History and Maintenance
Aesthetically, semi-detached and detached properties are the most sought after. Slightly older versions of these properties can boast great size rooms and gardens, however most terraced houses have comparatively smaller rooms and typically have a dated yet classic external design. Their architecture is inspired mostly by the Victorian and Edwardian period of history. However, the more upmarket terrace houses are inspired by Georgian designs and great examples of them can be found near Regent’s Park in London where they sell for over £1,000,000.
As most terraces date back to the late 1800s and early 1900s, the condition of the houses can be somewhat questionable if they have not been maintained properly by their previous owners. So it should be expected that some renovations may be required. For some lucky individuals, past residents will have done all the hard work for you, with central heating, double glazing , updated electric and plumbing systems and modern kitchen/bathroom sets already installed. However this is not always the case, particularly with auctioned properties. When these costly renovations are made, it is important to protect your investment with good property insurance.
Utilities and furnishings aside, the house itself should be in good condition too with strong, crack-free walls and sturdy floors. The walls in particular are a key focal point for tenants viewing terraces as they are shared with neighbours. Soundproofing these walls is a large expense but the neighbours can play a big role in your ability to successfully keep tenants. Therefore it is useful to assess the neighbour’s behaviour and noise volume before buying the property.
