Rochdale Buy-to-Let Guide

Greater Manchester is known as a good value area for property investors, especially compared to the South of England, which is typically pricier.

According to Rightmove, the average property in Rochdale went for £200,439 over the past year. The UK House Price Index states that the national average is £284,691, meaning Rochdale property is generally more affordable when compared to other areas. The average for Manchester is £242,523, so Rochdale could be considered as a cheaper, nearby alternative to buy-to-let property and off-plan developments in Manchester.

Sold prices in Rochdale are similar to the previous year and 6% up compared to 2021. This stunted growth was typical in 2023, as the overall UK property market was sluggish. However, this looks set to change moving forward as most property forecasts predict a return to healthy growth in the next few years.

In particular, the North West is set to recover quicker with higher growth than the national average, according to Savills, which is good news for those with an eye on Rochdale and Greater Manchester in general.

Rochdale is a diverse town for investment properties, from stone-built cottages to modern mansions. Of course, there are standard terraced, semi-detached, and detached houses and apartment buildings, including some large-scale new-build apartment developments in Rochdale town centre. There are late Georgian townhouses for those interested in period properties, and the countryside surrounding Rochdale means there are also farmhouses and barn conversions on the market.

Rightmove states that terraced properties were the most popular type of property sold in Rochdale during the last year, and they fetched an average price of £143,891. Semi-detached properties sold for an average of £202,655, with detached properties going for £355,104.

Average Property Prices in Castleton

The average property price in this area is £172,543

Average Rental Yield in Castleton

The average rental yield in this area is 5.74%

Average Property Prices in Norden

The average property price in this area is £290,408

Average Rental Yield in Norden

The average rental yield in this area is 4.00%

Average Property Prices in Wardle

The average property price in this area is £196,468

Average Rental Yield in Wardle

The average rental yield in this area is 4.90%

(Average property prices were taken from Rightmove in early 2024; rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Rochdale to Invest in?

Norden is a sought-after area in Rochdale, but this is reflected in the average property price, which is much higher than the borough’s average. Outer areas such as Wardle and Heywood are similarly priced to more central areas and can offer proximity to the countryside but may be less convenient for renters.

Castleton has been called one of the most affordable parts of Greater Manchester, so it’s no surprise that it has the lowest average property price of the listed areas. It also has the highest average gross rental yield, making it a promising area for a buy-to-let investor.

Regeneration

Prospective property investors should take note of ongoing and planned regeneration schemes in their areas of interest because it’s a good indicator of future tenant demand and capital growth. Rochdale has benefited massively from previous projects, transforming the area after the decline of the town’s textile industry and subsequent economic slump.

Rochdale has many ongoing regeneration projects in the pipeline. This includes town centre schemes such as Upperbanks, the Town Hall and surrounding area restoration, and the ‘levelling up’ of Rochdale Railway Station.

HPARK in Heywood has been called the biggest ‘sustainable development opportunity’ in the North West, and permission was secured earlier this year for an expansion to the massive site. The development’s location is perfect for taking advantage of the M62 and the region’s motorway network. This is part of the wider South Heywood Masterplan that will bring new homes and amenities to the area and create jobs.

Location and Transport Links

Rochdale can provide its residents with convenient access to natural beauty spots, as it is located at the foothills of the Pennines and near the Peak District. It also has excellent transport links to major cities like Manchester and other Greater Manchester towns through public transport networks such as trams.

It’s strategically located near other towns like Oldham, Bury, Bolton, and Middleton, making it an opportunity-rich area for locals.

While new-build properties are often sought-after by both investors and tenants, it is typically a higher-cost investment compared to older properties. For this reason, off-plan properties are gaining more attention as a way to save money when investing in a new build.

There may be some chances to invest off-plan in Rochdale, especially as Greater Manchester grows in popularity among developers looking to take advantage of the investment benefits.

However, as it stands now and in the near future, the majority of off-plan investment opportunities will likely remain concentrated in central areas of major cities.

In the case of Rochdale, it is worth expanding the search to Manchester City Centre and nearby areas popular with commuters and young professionals, such as Salford.