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Our client is looking for a quick sale and has offered a discounted price of &170,000 for serious buyers. The current rental is &895pcm exclusive of utilities and council tax which provides a gross yield of 6.3%

So now to the figures, I would expect a rental price of &1100pcm which would provide a gross yield of 5.7 if you paid the full asking price. On top of this, you also have one of the most exclusive apartments in the development, so coming to sell, shouldn't be a huge problem.

The apartment is advertised with Hitchin based agents Mather Marshall and the details for the advert can be found by clicking here. 

How much will people lose? - If tenants are deemed to have one spare room, the amount of rent eligible for housing benefit will be cut by 14%. If they have two or more spare rooms, the cut will be 25%. The government says that will mean an average loss of about &14 a week for council tenants. Those who rent from housing associations are facing an average loss of about &16 a week.

How many bedrooms are you allowed? - The new rules allow one bedroom for each adult or couple. Children under the age of 16 are expected to share, if they are the same gender. Those under 10 are expected to share whatever their gender. Disabled tenants will be allowed a bedroom for full-time carers. The number of bedrooms in the property will be determined by the landlord's tenancy agreement, so you cannot claim a bedroom is actually a living room.

Can I keep a spare bedroom? - Not without losing benefit. Parents who are separated are not allowed to keep a vacant bedroom for a child who visits. Foster children are not counted as permanent members of a household.

What about students? - From April, parents will not be penalised if a student is away, as long as he or she sleeps at home for at least two weeks a year. But when universal credit comes in from this autumn, students will need to be at home for at least six months to avoid a benefit cut.

What about lodgers? - From April, claimants with a paying lodger will be allowed to keep the first &20 of weekly rent. But housing benefit will be then be cut, pound for pound, on the rest of the rent they receive.
However, after universal credit is established, housing benefit will be cut, but tenants will be allowed to keep all the rental income (although only the first &4,250 of annual rent is free of income tax).

Are pensioners exempt? - From April 2013, if either half of a couple are of pensionable age, they will not suffer reductions to housing benefit. Under universal credit, both will need to be over pensionable age, or one will need to be in receipt of pension credit, in order to qualify for the maximum benefit.

This is a great opportunity to invest in a three bedroom family home on the sought after Fairfield Park development located just outside of Hitchin. 

Fairfield Park continues to be a popular place to live and there is still a shortage of good quality, affordable family homes in our local area. Currently, there are just two, three bedroom houses to let in Stotfold, one of these being in Fairfield Park. Tenants enjoy living here because the properties are modern and presented in a neutral colour scheme, there is an onsite Tesco's Express, Launderette, Gym and Hairdresser, for anyone who doesn't know the area, its also very close to Junction 10 of the A1M. 

The current rent would be in the region of &925 - &950pcm, giving a gross yield of 5.1% if purchased at full asking price. As I always make clear to investors, always make an offer, if you have the finances in place and are not in a chain, you stand in a very high position when it comes to being able to negotiate a deal. 

The property is advertised with Country Properties in Stotfold and the details for the property can be found by clicking here.