Plymouth Buy-to-Let Guide

As mentioned, Plymouth property is relatively affordable, especially compared to many other cities in the South. A look at the UK House Price Index shows that the average UK property is worth £287,546, and according to Rightmove, properties in Plymouth had an overall average price of £242,377 over the last year. This is 6% up on the previous year and 12% up when compared to 2020, which shows that the value of Plymouth property has been climbing in recent years.

But it’s important to consider whether or not this growth looks set to continue. Property experts Savills predict that capital value growth will remain sluggish over the next couple of years in the South West, but it should be back on track by 2028 when they predict it will have improved by 16.7% compared to 2023. While this is positive, it is much lower than other regions, with the North West forecast to grow 20.2% over the same time.

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The Plymouth city centre area can offer residents convenient access to amenities and is located on the seafront. But the suburbs are more popular places to live. In the west, there are some affordable areas where bargains can be found, like Millbridge. Many of these areas are considered somewhat rundown, but others, such as Devonport, have benefitted from regeneration.

The City Centre is popular with students, along with areas like North Hill, Greenbank and Mutley in the North.

Other northern suburbs include Mannamead and Crownhill, popular with commuters and local professionals due to good access to major roads, Plymouth Science Park, business parks, and Devon and Cornwall.

Peverell is a particularly popular area for Plymothians as it borders Central Park.

Across the River Plym to the west, there is Plympton and Plymstock, in-demand commuter suburbs close to some attractive countryside areas.

On the other side, across the River Tamar is Saltash and Torpoint. These two are separate towns in the County of Cornwall that are popular with commuters into Plymouth.

Average Property Prices in Mutley

The average property price in Mutley is £209,315.

Average Rental Yield in Mutley

The average rental yield in Mutley is 4.95%.

Average Property Prices in Peverell

The average property price in Peverell is £271,325.

Average Rental Yield in Peverell

The average rental yield in Peverell is 3.82%.

Average Property Prices in Plymstock

The average property price in Plymstock is £290,896.

Average Rental Yield in Plymstock

The average rental yield in Plymstock is 4.02%.

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

What is the Best Area of Plymouth to Invest in?

The best rental yields can be found in the inner suburbs of Plymouth, thanks to the affordable property prices. If you look for areas that benefit from regeneration, it may be possible to snag a bargain. The more popular places to live are further out, but the property landscape becomes more expensive with less generous yields.

The Plymouth City Centre, as covered by the PL1 postcode, can also offer decent average rental yields.

In recent years, as demand for housing continues to outpace supply, new-build properties have risen in popularity within investment circles.

With certain advantages over older residential properties, this investment type has garnered significant interest from investors and tenants alike.

As newly built developments, these properties require almost no maintenance costs, leading to a faster turnaround for new residents to move in and for investors to start seeing ROI.

In Plymouth, there are plans to boost new housing developments within the region. Plan for Homes 3 is the latest strategy from Plymouth City Council and aims to add several new and affordable housing to the area. Once completed, the introduction of these new homes could help boost local infrastructure and push the local property market towards the right direction.

Looking at recent market trends, investing in new-builds such as these could result in considerable capital growth and solid rental yields for investors in the long term.

While Plymouth gives good value for a city in the South, it is outperformed in most metrics by cities in the North regarding buy-to-let investments. As previously mentioned, the North West is forecasted to experience much more capital value appreciation, and higher average rental yields can be found in northern cities, such as apartments for sale in Liverpool and Manchester. Major cities such as these can usually offer more consistent demand and rental income as they are more attractive to renters.

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Plymouth is a strong contender when it comes to investing in student accommodation, thanks to its impressive average rental yields. However, some investors may see more established cities as the safer option as their bigger student population guarantees more consistent rental property demand. Cities like Liverpool, which boasts three universities, can also offer rental yields comparable to Plymouth’s while being more attractive to students.