U.K. Postcodes yields data

[Le Seb]

hi,

I just created a spreadsheet fully loaded with rental and sales prices for all uk top level postcodes.
It calculates yields of each postcode by getting sales and rental reference points per postcodes per type of property (1 bed, 2 beds, 3 beds )


I was hoping to get your feedback on the service to see if this is something that I should keep pursuing.
I have obviously invested a fair amount into collecting all this data together but I would like to understand the demand before I keep pouring money in.

The original idea is that it is very difficult to accurately locate the places with the highest yields in the UK as there is just too much data to gather, so this makes it simple.

I do not have enough status to post the link yet unfortunately, but what do yo think of the idea? Is this something useful?

Many thanks!

Seb

 

[Nicholas Wallwork]

Hi Seb,

I love the idea but how is it possible and where are you sourcing the data from?

For example how do you know if a landlord is renting a 6 bed house as a multi let (HMO - House in Multiple Occupation). I'm not aware of anywhere this is published and unless it's mandatory licenseable there will be no data on these...

Are you just going off average house price data and Lettings "let" data for that size of property? If so it might be a good indicator but I can see some fairly major potential inaccuracies...

Keen to hear more either way!

P.S. If you sign up as a premium member you can post a link to your business as a one off or in your signature...

 

[Le Seb]

Hi @Nicholas Wallwork,

We are sourcing the data from various real-estate websites and then excluding the outliers. We source minimum 5 sales and minumum 5 rents per type of property and compute averages.
It is not as accurate as the real registry data for sure, but it should be a good approximation and certainly help.

I think the biggest flow at the moment is that we are using top-level postcodes, which sometimes can span quite a large area, but doing finer grained analysis would require a more powerful system and won't fit in a spreadsheet, it will require a whole portal developed. This is something that I am thinking about, but I need to understand if investors would find it useful first.

I am happy to give you the spreadsheet for free for you to look at it if it is of interest. It is V1 so is not perfect, but it should give you a good idea of what I have in mind.

Keen to hear your thoughts

Seb

 

[Nicholas Wallwork]

I think the comparison would be very useful for sure... It would be useful for agents in "good" areas to show why to invest in those areas as an extra sales tool. Also good to help investors pick out where to next invest.

The main downfall could be the time you take the data over? Will it be weekly, monthly or a yearly average of that area? The latter would obviously be most useful as 5 properties is a very small sample and the data could easily be skewed.. (Say 5 large family 5 bed homes sold vs 5 small 5 bed HMOs for rent this would make the HMOs seem less profitable).

So if you can get the data set large enough I think it would be a good indicator.

Also as I said above it doesn't take into consideration HMOs, multi let's, rent to rent deals, varying management fees from agents across the country etc. So for a gross yeild rough indication it is an excellent idea and any accurate information is good information so I'd rather have this available to me than not...

So if you can build out the data and remove some of these inaccuracies (maybe combine final land reg data at some point as well??) the you'll have an ever increasingly useful tool.

As an aside are you doing this for fun? Or a commercial reason? Keen to hear your motivations

 

[Le Seb]

@Nicholas Wallwork thank you for the thoughts, appreciate it!
The current data is based on one scan of websites, but once automated properly we would run it constantly and average every month, should give us some good data. I'm worried that a year would be too long, but a quarter could be a good compromise.
I agree it does not take everything into account, that's ok, it's a V1

I was hoping to sell the spreadsheet, so yes, a mini business which who knows, may grow.
Can I ask you, how much would you pay for such data if it was available?