Portsmouth Buy-to-Let 2024 Guide

According to Rightmove, properties in Portsmouth had an overall price of £282,037 over the last year. As of late 2023, the UK House Price Index recorded that the average UK property is worth £287,546, making Portsmouth property similar to the UK average.

These prices are around 15% higher when compared to 2020 figures, so Portsmouth property has been growing in value in recent years. But is this trend set to continue?

The market is currently experiencing some sluggishness, particularly pronounced in South England. Property experts Savills predict that growth will return to the UK property market in the next few years, but they believe that capital value in the South East region is set to grow by the second-lowest amount (16.7%) by 2028.

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The rental market in Portsmouth offers a variety of property types, including terraced and semi-detached houses, as well as flats. However, as mentioned, prices in this region are notably high, meaning investors will likely find more affordable and higher-yielding investments elsewhere.

In the past 12 months, properties in Portsmouth achieved an average price of £282,037. Among these sales, terraced properties were the most popular, selling for an average price of £285,426. Flats sold for an average of £197,127, while semi-detached properties fetched £378,416.

Overall, sold prices in Portsmouth over the last year were 3% lower than the previous year and 5% higher than the 2021 peak.

Average Property Prices in City Centre

£267,257

Average Rental Yield in City Centre

5%

Average Property Prices in Baffins

£272,745

Average Rental Yield in Baffins

5.67%

Average Property Prices in Farlington

£428,849

Average Rental Yield in Farlington

2.98%

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

What is the Best Area of Portsmouth to Invest in?

Property on the nearby mainland in areas like Farlington seems to have disappointing yields due to the expensive property prices. But suburbs on the island of Portsea are more generous, usually offering between 5 and 6%.

As covered by the PO1 postcode, Portsmouth City Centre can give a decent rental yield. However, certain inner city suburbs such as Fratton are the most attractive to investors as they have much higher yields than the area as a whole, hitting nearly 7% on average.

Investing in new-build properties is an emerging trend within the UK real estate market, captivating both tenants and landlords alike. As these properties are newly constructed, there is minimal need for repair or renovation before they are market-ready. This means that tenants can move in faster, and investors can see a quicker turnaround on rental returns.

As demand continues to outpace to supply, the need for new housing opportunities grows stronger. There are various housing and regeneration developments in Portsmouth that aim to address this issue and meet the growing population of the region. For instance, the redevelopment of 56 Arundel Street in Portsmouth City Centre plans to deliver a moddern 22-floor residential tower and is expected to boost local infrastructure and elevate the rental market.

Considering the present market dynamics, choosing new-build properties could be a favourable opportunity for investors in the coming years.

While Portsmouth presents various new-build investment options, major metropolitan cities like Liverpool and Manchester might offer broader investment prospects and higher capital appreciation.

Find Out More: Learn more about this investment trend with our recent buy-to-let guides, covering everything from new-builds in Ipswich to the latest UK hotspots!

While the Portsmouth area can offer some of the best gross rental yields in the Southeast region, the average yield is significantly lower than those in major northern cities. For comparison, according to Provestor’s UK rental yield ranking, Portsmouth’s average is 5.6%, while Liverpool’s is 7.02%.

Other regions, such as the North West, are also forecasted to outstrip the South East when it comes to capital growth. Property experts Savills predict that capital value in the South East region is only set to grow 3% up to 2027, while the North West is forecast to increase by 11.7% in the same timeframe.

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