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
| Metric |
Current (at £825 pcm) |
Potential (at £1,050 pcm) |
| Annual Rent |
£9,900 |
£12,600 |
| Estimated Capital Value |
£210,000 |
£210,000 |
| Gross Yield |
5% |
6% |
- Current gross yield: 5%
- With rent adjusted to local average (£1,050 pcm): yield improves to 6%.
Investment Proposition
- Immediate Rental Return
- Let at £825 pcm, offering reliable income from day one.
- Upside Potential
- With minor enhancements or closer alignment with the market, re-let could easily target £1,000+ pcm, significantly boosting yield.
- 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.
- Cost-Effective, Turn-Key Asset
- Freshly decorated and with a new boiler, the property requires minimal immediate expenditure—ideal for hands-off investors.
- 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.
