Bournemouth Buy-to-Let Guide

According to housesforsaletorent.co.uk, the average rent in Bournemouth is £1,366. This can vary by property type, but this figure puts it about in line with the UK average rent of £1,279 PCM, as calculated by the HomeLet Rental Index.

The UK rental market has been stuck in a period of high demand and low supply, which has been exerting pressure on rent, causing it to rise rapidly. Bournemouth is no exception to this, as average rent increased 9.6% in 2023 compared to the prior year, according to the BBC.

Rental yields are known to be low in certain parts of Bournemouth, with some postcodes being called buy-to-let ‘not-spots’ in previous years.

One advantage of investing in Bournemouth is the diverse range of opportunities on offer for buy-to-let. This includes standard residential rentals, student accommodation, and holiday lets.

The town centre offers good amenities, transport links, and easy access to the coast, including West Cliff Beach. It’s popular with students and areas north of the centre like Winton, thanks to its proximity to Bournemouth University and the train station. Other northern suburbs include Charminster and Kinson. Further out, the northern districts are less convenient for the town centre and coastline than other areas.

To the east, there are areas such as Boscombe and Southbourne. Southbourne is one of the most popular places to live in Bournemouth, and it offers good access to the region’s blue flag beaches. In the west, there are areas such as Westbourne and Branksome.

As you travel further out, there are also separate small towns like Poole and Christchurch. Both are popular residential areas for those who work in the Bournemouth area, and Christchurch attracts tourists and visitors depending on the season.

Bournemouth Town Centre (BH1)

Average Property Prices in Bournemouth Town Centre

The average property price in this area is £248,13.

Average Rental Yield in Bournemouth Town Centre

The average rental yield in this area is 5.02%.

Average Property Prices in Kinson

The average property price in this area is £337,740.

Average Rental Yield in Kinson

The average rental yield in this area is 5.61%.

Average Property Prices in Canford Cliffs

The average property price in this area is £877,444.

Average Rental Yield in Canford Cliffs

The average rental yield in this area is 2.02%.

(Average property prices taken from Rightmove in late 2023, rental yield estimates calculated with figures from housesforsaletorent.co.uk in late 2023.)

What is the Best Area of Bournemouth to Invest in?

The Bournemouth Town Centre, as covered by the postcode BH1, can offer a decent average rental yield.

The average property price in this area is much lower than the overall Bournemouth average, so some good deals can be found here with a chance to target students as potential tenants.

When it comes to the northern suburbs, the rental yield varies depending on the area. Some districts, such as Kinson, have an average property price that is lower than the Bournemouth average, and rental yields of over 5% can be found if the area is chosen wisely.

Areas like Southbourne in the east are more upmarket, so the property is pricier and rental yields are comparatively lower. However, this area is known to be in demand due to its great location by the coast and with convenient access to the town centre. Whether you are looking for the best property investments or a new area to invest, Bournemouth does have a lot to offer.

Some of the most expensive areas of Bournemouth can be found in the west, like Canford Cliffs, where the property comes with an extravagant price tag, and the rental yields can be very low.

One of the most popular forms of investment is new-build property investment.

With almost zero maintenance work required before it is ready to go to market, newly built developments are particularly attractive to tenants as they can move in whenever ready. This also means landlords can start receiving returns on their investment faster than they would with older properties requiring renovation.

In October 2023, BCP Council launched new energy-efficient homes in Bournemouth, Christchurch and Poole. These 11 developments will provide new homes for local families and consist of a block of nine 2-bedroom flats and two 3-bedroom houses.

As property market trends continue to shift, investing in newly developed properties like this could lead to higher rental growth in the coming years.

Bournemouth is an attractive location, and this is reflected in the high demand for property in the area and the rapidly rising rents. When it comes to rental yields, some decent returns are possible, but other areas of the UK can offer much higher rental yields and more affordable property to ensure a good investment.

For example, Zoopla has stated that Liverpool is in the UK top ten for gross rental yields, with an average of 7.21%, and according to the UK House Price Index, the average price of a house in Liverpool is £177,628. Bournemouth’s property prices are prohibitively high for a lot of investors, so it’s worth seeking out more affordable areas with higher rental yields to make a buy-to-let investment more successful.

When it comes to capital growth, other regions, such as the North West, are also forecasted to outdo the South West. Property experts Savills predict that capital value in the South West region is set to grow 17.9%, leading to 2028, but the market in the North West is forecast to increase by 20.2% in the same period of time.

Further Reading: Explore North West investment with RWinvest’s guide to buy-to-let property in Preston!