Ashill Road

Overview

• Type: 3-bedroom mid-terrace, Freehold
• Condition: Recently refreshed—decorated 12 months ago; new boiler installed ~12 months ago
• Occupancy: Let to current tenants on a rolling contract
• Rental Income: £825 pcm
• Energy Performance: EPC Rating D

Local Market Snapshot

Sale Values

• For comparison, average terraced price across Birmingham: £215,000 (June 2025) (Office of National Statistics)

Rental Trends

• 61 Ashill Road currently achieves £825 pcm (rolling tenancy)
• Nearby 3-bed mid-terrace on Kendal Rise Road let for £1,150 pcm
• Average rent for the Rubery & Rednal area: £1,059 pcm
• City-wide average rent in Birmingham: £1,063 pcm (July 2025), up 6.2% year-on-year

Interpretation: At £825 pcm, the property currently underperforms the local average by 22%, suggesting scope for rent review, especially once vacant or re-let.

Financial Snapshot & Yield Analysis

• Current gross yield: 5%
• With rent adjusted to local average (£1,050 pcm): yield improves to 6%.

Investment Proposition

1. Immediate Rental Return
   • Let at £825 pcm, offering reliable income from day one.
2. Upside Potential
   • With minor enhancements or closer alignment with the market, re-let could easily target £1,000+ pcm, significantly boosting yield.
3. Capital Appreciation
   • Local average sale prices have held firm and shown modest growth. Birmingham terraced values are around £215,000.
   • Incremental capital gains are likely medium-term, particularly if the property is maintained or upgraded.
4. Cost-Effective, Turn-Key Asset
   • Freshly decorated and with a new boiler, the property requires minimal immediate expenditure—ideal for hands-off investors.
5. Freehold Tenure
   • Full ownership offers greater long-term control and no ground-rent liabilities.

Local Market Momentum

• Sales Market
  • Terraced homes in B45 are averaging £200k+, with comparable properties seeing listings between £190k–£210k.
  • Some local streets like Rednal Hill Lane have seen terraced sales around £310k+, though those may include extended or significantly upgraded homes.
• Rental Market
  • Rents in the area growing (4–6% annually)
  • The property is currently let below market but positioned for catch-up and strong upward rental pressure.

Why 61 Ashill Road Stands Out

• Key investment fundamentals: low entry cost, immediate income, value-add potential.
• Positioned for yield enhancement: modest improvements or re-letting at full market could lift returns significantly.
• Strong capital holding in a stable, sought-after suburb of Birmingham, with nearby green spaces (Lickey Hills) and commuter access.
• Excellent investor appeal: minimal initial outlay, reliable tenancy, and flexibility to exit or upscale hold.

Next Steps for Investors

• Review current tenancy and consider short-term increase upon renewal.
• Benchmark rent against regional comparables (£1,000–£1,100 pcm for 3 beds).
• Explore minor value-add investments (e.g., cosmetic updates, EPC improvements to ascend above D).

In Summary:

61 Ashill Road represents a solid, low-risk investment: benefitting from an existing rental income stream, environmentally refreshed and mechanically updated, with clear hedges for income growth and capital appreciation. Whether as a hands-off rental asset or three-bed yield play, it’s well-suited to both first-time and seasoned investors.

Get in touch with the team