Ipswich Buy-to-Let 2024 Guide

The UK House Price Index shows that the average UK property is worth £287,546, and Ipswich’s property prices sit below that. According to Rightmove, the overall average house price in Ipswich over the past year was £277,969; this is similar to the previous year and around 16% up on 2020.

Capital value appreciation has slowed down considerably this year in the UK buy-to-let property investment market, but property experts Savills forecast a return to growth over the next few years. All the same, property in the East of England region is only predicted to grow around 3% by 2027.

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The Ipswich rental market offers a variety of property types, including detached and semi-detached houses, as well as terraced properties. As mentioned, prices in Ipswich are slightly lower than the UK average, meaning there could be some solid rental yields on offer for investors.

In the last 12 months, properties in this region had an overall average price of £277,969. The majority of completed sales were attributed to semi-detached properties, garnering an average price of £280,489. Terraced properties sold for an average of £223,262, with detached properties seeing an average of £453,921.

In general, sold prices in Ipswich over the past year remained consistent with the previous year and saw a 5% increase compared to the peak of £263,591 observed in 2021.

Average Property Prices in Ipswich Town Centre

£265,376

Average Rental Yield in Ipswich Town Centre

3.67%

Average Property Prices in Chantry

£217,745

Average Rental Yield in Chantry

4.46%

Average Property Prices in Woodbridge

£482,187

Average Rental Yield in Woodbridge

2.97%

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

What is the Best Area of Ipswich to Invest in?

When it comes to the best area of Ipswich to invest in for buy-to-let, it’s important to look at the average property price, projected rental yields, and demand for each area. The towns and villages further out from central Ipswich are popular and upmarket, but the property comes with a hefty price tag, keeping the gross rental yields low.

Based on the IP1 postcode, Ipswich Town Centre has a fairly low rental yield overall, but this improves in certain inner suburbs, such as Whitehouse, where the average yield exceeds 4%.

The best yields are typically found in surrounding suburbs, provided it is an area where the property prices are generally lower than the Ipswich average. Chantry and Gainsborough are two areas where good property deals can be found.

Newly constructed properties have experienced a surge in demand within the UK rental market, capturing the attention of landlords and tenants alike.

The majority of these developments require minimal maintenance work before being ready for market, allowing tenants to move in faster and for investors to begin earning rental income promptly.

Many new-build projects are integrating cutting-edge eco-technologies to tackle environmental issues. Innovations such as solar panels and air source heat pumps enable tenants and landlords to substantially lower energy costs by generating their own electricity.

The last few years have also seen a severe undersupply of new housing to meet growing demand. To address this, many UK cities have begun incorporating new housing development schemes.

For example, Ipswich Borough Council plan to build more than 300 new homes before 2025.

Given current trends in the market, exploring investments in newly built properties could offer a potentially lucrative option for investors.

Nevertheless, although there are some investment opportunities in new builds in Ipswich, a broader range of possibilities may be available in larger investment cities, such as Liverpool and Manchester.

Ipswich is a popular place to live with a growing population, but overall, other areas of the UK offer a much better deal when it comes to investment property.

Property in the south of England is significantly more expensive than those in the north, so those seeking more affordable property may want to look to buy-to-let in Liverpool and Manchester, where the average property price is much lower than the UK average. Northern cities can also often offer much more generous rental yields. For example, Zoopla puts Liverpool in the top ten for gross rental yields in the UK, calculating the average to be 7.21%.

When it comes to capital value appreciation forecasts, the north also beats out the south. For example, Savills predict that the North West’s property will grow by 20.2% by 2028, while the East of England, where Ipswich is located, is set for 16.7% growth.

Delve further into the buy-to-let market in the UK with RWinvest’s overview of buy-to-let in Northampton!