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Middlesbrough Buy-to-Let 2024 Guide

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    Everything You Need to Know About Middlesbrough Buy-to-Let

    Middlesbrough is one of the most northern cities in England. The city is in proximity to places like Durham, Sunderland, Hartlepool and Newcastle.

    The North East has traditionally low property values that have barely recovered since the 2008 financial crisis and better-than-average rental yields.

    By focusing on the North, investors can avoid the high prices associated with buy-to-let properties in London and other southern cities.

    This guide will look at the Middlesbrough property market in great detail, breaking down property prices and rental costs and comparing them to the rest of the country when it comes to buy-to-let investment. We’ll also look at different Middlesbrough suburbs and districts, helping property investors find an area that suits their buy-to-let strategy.

    Read on for more information.

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    Buy-to-Let Property Prices in Middlesbrough

    As previously mentioned, Middlesbrough property values are low.

    The latest figures in the UK House Price Index show Middlesbrough’s average house price is £139,501. Properties in the area have seen a price decline of 1.30% year-on-year.

    If we delve deeper, detached properties cost £249,995 on average. Semi-detached homes cost £140,954. On average, terraced houses and flats cost £98,974 and £74,529.

    In comparison, the national average house price is £291,044, making Middlesbrough a substantially cheaper property investment opportunity – the North East city is around 70% less expensive than the rest of the country.

    According to Rightmove, the most popular house type in Middlesbrough is semi-detached. Rightmove also states that sold prices were down by 7% annually but still up by 1% on the 2020 peak.

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      Buy-to-Let Rental Market in Middlesbrough

      Middlesbrough’s average rental cost is £655 pcm, according to the Middlesbrough Rental Market Summary on Home.co.uk.

      Those figures put the average rent cost for a room at £449 PCM, while a flat will cost more at £610 PCM. Predictably, houses command the most expensive average rent at £681 PCM.

      According to this data and the average house price, the average rental yield in Middlesbrough is around 5.6%. For an effective property investment strategy, it’s advisable to seek locations with higher-than-average rental yields.

      The Homelet Rental Index puts the average rental cost in the UK at £1,276 PCM. In addition, the national average rental yield is around 5.2%.

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      Buy-to-Let Investments in Middlesbrough: Area Breakdown

      Middlesbrough has numerous places in which buy-to-let investors can potentially enjoy good capital growth.

      Please note: Middlesbrough house prices in this section come from Rightmove. Rental yields calculated from figures on housesforsaletorent.co.uk

      TS1

      Middlesbrough’s TS1 postcode covers the town centre. Here, you’ll find all the typical amenities and city centre dwellings, such as terraced properties, converted flats, and apartments.

      The TS1 postcode commands strong rental yields and good-value properties. However, the area has substantial levels of deprivation and is not a desirable place to live compared to some other parts of the UK with good value properties.

      Average Property Price in TS1

      The average property price in TS1 is a low £72,044.

      Average Rental Yield in TS1

      The average rental yield in this area is 9.5%.

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        Middlesbrough Bridge View

        TS3

        Much like TS1, TS3 also offers cheap properties and high rental yields.

        Areas in this postcode include North Ormesby, Park End and Thorntree. Rents are cheap here, but some streets are pretty disadvantaged and rundown.

        Average Property Prices in TS3

        The average property price here is £85,526.

        Average Rental Yield in TS3

        The average rental yield in TS3 is 7.63%.

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          TS7

          TS7 is one of the more expensive places to buy property in Middlesbrough. However, prices are still much lower than the national average. Outer suburbs like Marton, Nunthorpe and Ormesby offer good living for families, young professionals and retirees. The areas have amenities and schools. The crime rate is lower here than in other parts of Middlesbrough.

          Nunthorpe was voted the best place to live in Middlesbrough in a 2023 poll.

          Average Property Price in TS7

          The average property price in TS7 is £230,117.

          Average Rental Yield in TS7

          The rental yield in this part of town is 3.39% on average.

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          Why You Should Consider a Buy-to-Let Investment in Middlesbrough

          Student City

          While Middlesbrough may not be the first name that springs to mind when you think of universities, Teesside University has over 19,000 students and plans to expand further. Over the last few years, the university invested almost £300m into the campus and new facilities and created a modern student village in the Gresham area.

          Buy-to-let landlords may consider investing in student properties in one of the popular student areas.

          These include:

          • Acklam
          • Cargo Fleet
          • City Centre
          • Eston
          • Linthorpe
          • Normanby
          • Old Lackenby
          • Ormesby
          • Thornaby

          Regeneration

          Middlesbrough has made efforts over the past several years to regenerate the local business potential and attract new industries to the area, such as healthcare, digital and creative, renewable and life sciences.

          The Tees Valley Enterprise Zone is spearheading the effort to bring employment opportunities to Middlesbrough. The TeesAMP scheme would see a new business park for the modern advanced manufacturing sector.

          The council also has plans to regenerate the Middlesbrough town centre and make it appeal as a commercial, retail and residential space. The Centre Square scheme will introduce six grade-A office buildings in Middlesbrough, creating 3,000 jobs in the process.

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            Middlesbrough New-Builds

            There’s a supply-demand imbalance across the UK regarding available rental properties, driving demand for new-build properties.

            New-build property investment has grown in popularity in recent years due to tenant demand, better energy efficiency, and lower maintenance costs than older properties.

            Some new builds are being built in Middlesbrough as part of the Middlesbrough Council’s Housing Local Plan. If all goes to plan, these areas may be more attractive to private developers and encourage more new build investment opportunities.

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            Off-Plan Property in Middlesbrough

            If you’re an investor hoping to invest in new builds in Middlesbrough, it may be worth looking into off-plan options.

            New build properties are typically more expensive than older ones, so investing off-plan is one way to get a good deal on a new property. Investors can benefit from discounts or payment plans by investing earlier in the development process, as in the planning or construction stage.

            However, opportunities for off-plan property investment are more likely found in larger cities with massive rental demand and potentially higher returns.

            For example, off-plan options are common in London, Manchester, and Liverpool.

            Further Reading: Learn more about property investment opportunities in the UK by taking a look at our buy-to-let area guides, covering topics like off-plan property in Bootle and the best places to invest.

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              How Does Middlesbrough Compare to Other UK Regions When it Comes to Buy-to-Let?

              Sure, Middlesbrough offers cheap properties and good rental yields, but the area’s crime rate will affect any buy-to-let satisfaction. Many landlords fail to factor in tenant satisfaction or – more importantly – tenant reliability.

              Middlesbrough has the highest crime rate in North Yorkshire. In 2022, there were 187 crimes per 1000 people. A bad reputation will not attract the best tenants, and you may face lengthy void periods or take on unreliable occupants.

              Therefore, you should consider an investment property in other parts of the UK instead. It may be worth looking at other North East cities; for example, Sunderland investment properties are a popular choice.

              But if you’re looking for good-value house prices and attractive rental yields, consider looking to the North West at cities like Manchester or Liverpool. This region is considered by many to be the best place to invest in property in the UK.

              According to Zoopla, Liverpool has an average rental yield of over 7.2% – more than 2% higher than the national average. In addition, property prices are £180,268 on average.

              While Liverpool suffers from an unearned stereotype, research from One Family showed that Liverpool is the best UK city to live and work, boasting competitive salaries and below-average living costs.

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                Want to Invest in Middlesbrough?

                With the current high cost of a buy-to-let mortgage, affordable property is preferable for most investors.

                If you are set on investing in Middlesbrough, ensure you do your research. Property prices are low for a reason in this city. While rental yields may draw you in, you’ll only earn that if you have reliable tenants. Be sure to consider other parts of the UK before making any decisions, and seek help from a reliable property investment company to help you find your way through the current housing market.

                For more information about UK buy-to-let locations, take a look at some of our RWinvest area guides:

                Map of Middlesbrough

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                Author

                Dale Barham

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                Dale is a property news and onsite content writer at RWinvest.

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