Harrogate Buy-to-Let Guide

According to Rightmove, the average price of a property sold in Harrogate over the last year was £410,513.

This is much more expensive than the average for the UK, which is £284,691, as stated by the UK House Price Index.

Sold prices in Harrogate over the last year were 3% up on the previous year and 8% higher than in 2021, so it’s clear that house prices in Harrogate are on the rise.

But is this trend set to continue?

Property experts Savills estimates that capital value is set to increase by 20.2% in the Yorkshire and Humber region in the next five years to 2028 – one of the highest predictions in the UK.

Learn More: Wondering if UK buy-to-let is worth it? Our updated market insights cover everything from the latest buy-to-let costs and the best areas for UK buy-to-let!

For investors looking to capitalise on the opportunities offered by the Harrogate buy-to-let market, a range of investment properties is available for sale – from quaint Victorian terraces to modern apartments with panoramic views.

When searching for investment properties in Harrogate, consider factors such as rental potential, property condition, location, and future market trends.

Engage with local estate agents with in-depth knowledge of the area, which can help you identify properties that align with your investment objectives.

Average Property Prices in Oatlands

The average property price in this area is £517,386.

Average Rental Yield in the Oatlands

The average rental yield in this area is 2.62%.

Average Property Prices in Pannal

The average property price in this area is £697,876.

Average Rental Yield in the Pannal

The average rental yield in this area is 2.17%.

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

What is the Best Area of Harrogate to Invest in?

Compared to the average buy-to-let property for sale in the UK, properties in Harrogate are notably more expensive. Some areas can offer a decent rental yield thanks to the high rent that comes with such an in-demand area.

The property price tags in The Duchy Estate are the most sizable, leading to a low gross rental yield. A buy-to-let property within the southern suburbs would be most advantageous, and with thorough research, it may be possible to see some return on investment.

Regeneration

Several regeneration projects are ongoing or on the cards in Harrogate and surrounding areas.

Looking at regeneration projects is one way an investor can gauge the potential demand for an area in the near future. Doing this means investors can get involved when property prices are lower, capitalising on increased property value and enhanced rental income later on as demand rises and the area undergoes revitalisation.

The Transforming Cities Fund, for example, is a programme aimed at communities across Harrogate, Wakefield, and York to enhance bus and rail stations, cycling and walking infrastructure, and introduce new Park and Ride facilities.

Plans for Harrogate Town Centre include improvements to rail and bus station access for people travelling on foot, as well as new cycling and walking routes, which will improve access across and within the town centre and the north of Harrogate, as well as better connecting people to healthcare, employment and new housing developments.

Initiatives such as these are expected to improve infrastructure and contribute to Harrogate’s overall attractiveness and livability, potentially increasing property demand and investment opportunities for buy-to-let investors in the coming years.

Transport Links

As previously mentioned, Harrogate boasts excellent transportation links throughout North Yorkshire, with easy access to the A1(M) and Leeds just a 35-minute drive away.

Furthermore, you can reach the Yorkshire coast in just over an hour, and the Yorkshire Dales – specifically Nidderdale – are practically on the doorstep.

Harrogate Train Station provides direct services to London in just over 2 hours, while Northern services offer quick connections, with journeys from Leeds to Harrogate taking 32 minutes, from York to Harrogate taking 34 minutes, and from Knaresborough to Harrogate taking only 9 minutes.

Therefore, the area provides an appealing living environment for those seeking green spaces without significantly compromising the conveniences of urban life.

Although the benefits of investing in new-build properties are evident, they often come with a higher price tag than older residential properties.

Off-plan property investment presents a solution for accessing new builds at a more affordable price. Investors who opt for off-plan commit to a property before its completion, typically securing it at a discounted rate compared to standard market prices.

Early engagement can lead to significant capital appreciation with a lower initial investment, as the value naturally rises nearing the completion of the off-plan property.

Like most new-build investments, particularly in high-demand locations, off-plan properties demonstrate strong rental demand, potentially offering solid long-term yields.

Learn More: Explore this investment trend further with our recent buy-to-let guides, covering everything from off-plan property in Islington to the latest UK hotspots!