Carlisle Buy-to-Let Guide

Carlisle boasts a vibrant rental market driven by a diverse population, including students, professionals, and families.

The demand for rental properties in the city remains consistently high, thanks to its thriving local economy and excellent transport links. Whether you’re considering investing in a student flat near the University of Cumbria or a family home in one of Carlisle’s residential suburbs, there are plenty of opportunities to secure reliable tenants and achieve competitive rental yields.

According to housesforsaletorent.co.uk, the average monthly rent in Carlisle is £618 PCM, which is considerably lower than the UK average rent of £1,262 PCM, as outlined by the latest HomeLet Rental Index.

When considering a buy-to-let investment in Carlisle, it’s vital that investors understand the different areas within the city.

Carlisle Town Centre presents an attractive option for investors seeking the convenience of urban living, with a range of amenities and transport links close at hand. Currock, located just south of the city centre, is a quieter residential setting, ideal for families looking for more space and tranquillity. Morton, in the west, offers a blend of suburban charm and easy access to the countryside, making it an appealing option for those seeking a balance between city living and rural retreats.

Carlisle City Centre (CA3)

Average Property Prices in Carlisle City Centre

The average property price in this area is £213,318.

Average Rental Yield in Carlisle City Centre

The average rental yield in this area is 3.54%.

Average Property Prices in Morton

The average property price in this area is £147,500.

Average Rental Yield in Morton

The average rental yield in this area is 4.57%.

(Average property prices were taken from Rightmove in early 2024; gross rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Carlisle to Invest In?

Areas like Currock offer prices below the UK average, producing a respectable yield of around 5%.

However, properties in Carlisle City Centre typically see higher averages, potentially leading to lower rental returns.

Opting for a buy-to-let property in Currock could see more significant returns and offer a broader range of demographics for investors to target.

Investing in new-build properties is a growing trend in the modern UK property market, gaining the attention of investors and tenants alike. Newly built properties require almost zero maintenance before becoming market-ready, meaning that residents can move in quicker, and landlords can begin seeing returns much earlier.

As this demand has increased, the UK housing supply has struggled to keep up. Understandably, the necessity for new housing opportunities has become increasingly apparent, with many local authorities implementing various strategies to help alleviate the issue.

For example, in conjunction with various private developers, Carlisle City Council has engaged in multiple new housing projects to help foster sustainable and low-cost homes within the region.

Considering the present market dynamics, opting for new-build properties could prove to be a strong investment strategy over the coming years.

While Carlisle presents some investment opportunities, new-builds in Manchester or other larger cities may offer more extensive investment prospects and potentially higher capital appreciation.

When comparing Carlisle to other UK regions for buy-to-let investment, it’s essential to consider factors such as rental yields, property appreciation rates, and overall market stability.

While Carlisle may not boast the same level of investment activity as major metropolitan cities like London, it can offer distinct advantages for savvy investors.

With its relatively affordable property prices and steady rental demand, Carlisle presents an attractive opportunity for those looking to enter the buy-to-let market without breaking the bank. The city’s proximity to popular tourist destinations such as the Lake District and Hadrian’s Wall also adds to its appeal, drawing in holidaymakers and potential tenants alike.

As mentioned, the North West is expected to see an average capital growth of 20.2% by 2028, meaning that the area could be a top choice for those seeking long-term gains.

However, it is possible to obtain similar demand levels, higher returns and affordability in other North West hotspots. For example, buy-to-let properties in Liverpool typically offer yields exceeding 8% in certain areas, with prices often well below the UK average.