Milton Keynes Buy-to-Let Guide

So, is Milton Keynes one of the best places to invest in UK property?

According to Houses for Sale to Rent, Milton Keynes’s average rental price is 1,311 PCM. The prices range from £410 to £8,000 PCM.

The same database puts average UK rental prices at £1,375 PCM. This makes Milton Keynes’s Average rental income 4.8% less than the rest of the country.

These stats also put Milton Keynes property prices at £403,478. This gives the city a rental yield of 3.9%.

The average UK rental yield is 5.19%.

To conclude, Milton Keynes is more expensive. However, it offers a worse rental yield than the national average.

Many areas make up the Milton Keynes region. Let’s look at some of them in greater detail.

Bletchley and Fenny Stratford

This area is south of central Milton Keynes. It includes:

• Denbigh North
• Denbigh East
• Denbigh West
• Central Bletchley
• Eaton Manor
• Water Eaton
• Brickfields
• Mount Farm
• Fenny Stratford

According to the 2011 census, Bletchley and Fenny Stratford has a population of over 15,000.

Average Property Prices in Bletchley and Fenny Stratford

Zoopla puts average property prices at £289,500 in MK1.

Property prices in MK2 are similar. They have an average sold price of £287,737.

Average Rental Yields in Bletchley and Fenny Stratford

According to Houses for Sale to Rent, MK1 offers an average rental yield of 14%. However, the rent price stats are quite limited.

MK2 has an average rental yield of 4.9%.

Broughton offers lots of green space. Locals can also easily access Milton Keynes amenities such as the Coachway station. The surrounding area also includes:

• Pineham
• Brinklow
• Kingston
• Monkston

Milton Keynes Village is an old settlement. This is a residential area – not the city itself. Localities here include:

• Northfield
• Middleton
• Atterbury
• Brook Furlong
• Fox Milne
• Oakgrove

Average Property Prices in Broughton and Surrounding Areas

The MK10 postcode has an average property price of £432,102, according to Zoopla.

Average Rental Yields in Broughton and Surrounding Areas

The MK10 postcode offers yields of 4% on average.

Stony Stratford has cultural significance in the Milton Keynes area. It is the town from which the settlement was formed. Stony Stratford includes traditional and new residential areas.

Average Property Prices in Stony Stratford

Properties cost an average of £363,638 in MK11.

Average Rental Yields in Stony Stratford

Expect rental yields around 5.4% in Stony Stratford.

People often say there is nothing in Milton Keynes except concrete cows and roundabouts. This is not exactly true. Buy-to-let investors may be drawn to the area for numerous reasons. These include:

Population

Milton Keynes’ population currently exceeds 230,000 and is rapidly growing.

This number has risen by 15% in less than two decades, with some estimates predicting around 500,000 people will call Milton Keynes home within 30 years.

This is excellent news for buy-to-let investors looking for a ready-made tenant pool.

Economy

Milton Keynes offers numerous business opportunities with well-paying jobs. These opportunities attract potential tenants to the area. The main industries are logistics and services. The area is perfectly located between London, Birmingham, Oxford and Cambridge. This is known as the country’s “brain belt”. Milton Keynes attracts people looking for access to these cities for work.

Some of the big business names in the area include:

• Open University
• Deloitte
• PwC
• Santander
• Network Rail
• Volkswagen UK HQ
• John Lewis

Amenities

Milton Keynes offers an unusual town layout. The area is made of grid squares. These squares include their own amenities, like shops and schools. However, the area also has lots of open and green spaces in between those grids. The local woodland attracts people looking for a slice of nature.

Central Milton Keynes is home to the following amenities:

• Centre: MK Mall
• Supermarkets
• Intu Milton Keynes
• The Theatre District
• Public services

The area also has fantastic transport links. For instance, commuters are right next to the M1 and A5. The area also has many railway stations. Milton Keynes Central connects to London in roughly 45 minutes.

Milton Keynes will also be in the middle of the East-West Rail railway line. This new route will connect Oxford, Cambridge, Bedford and Bicester. In addition, the Oxford-Cambridge Expressway road is set to pass through Milton Keynes as well.

Newly developed properties can capture the interest of tenants and landlords alike but often see higher costs for investors than traditional residential units. A strategy to enhance affordability is engaging in off-plan property investment, which involves acquiring a property before construction completion. By entering the process early, investors can typically secure units at discounted rates compared to standard market values.

Engaging in off-plan investment presents the potential for substantial appreciation in property value as construction progresses. As the property nears completion, the likelihood of capital growth tends to increase. Like any newly built property, off-plan properties generally experience strong rental demand, potentially resulting in significant rental yields in the future.

Successful off-plan investors often target emerging areas with robust infrastructure and expanding job markets. Locations undergoing substantial regeneration are particularly attractive, as many private developers focus on such areas for future construction projects.

While there is potential for off-plan investment in the Milton Keynes rental market, investors may find more lucrative opportunities in UK regions with a broader range of new-build developments, such as the North West.