Rotherham Buy-to-Let Guide

According to housesforsaletorent.co.uk, the average monthly rent in Rotherham is £880 PCM. This is significantly cheaper than the UK average of £1,268 PCM calculated by HomeLet.

The chronic undersupply of private rental properties continues across the UK, pushing average rents ever higher. According to the BBC, Rotherham is no exception to this trend towards rapidly rising rents, as the average rent increased by 10.8% in a year (January figure).

The area has also experienced a rise in private renting over the last decade. The proportion of Rotherham households in the private rental sector increased from 11.3% in 2011 to 15% in 2021. Learn more about investing in real estate in the uk with our free guide.

With demand rising and seemingly no end to the shortage of rental properties, average rents are expected to continue to increase across the UK.

Rotherham came last in Rightmove’s latest ‘Happy at Home Index’, implying it may not be the best choice for rental demand. When deciding on a location for your buy-to-let venture, choosing an attractive area is important to appeal to tenants and keep them satisfied with the residential property investment in the long run.  This type of investment is attractive for some passive income UK investors looking for new purchases.

But Rotherham’s location may be a draw for renters as Sheffield is nearby, with links to Leeds and Nottingham.

Average Property Prices in Rawmarsh

The average property price in this area is £164,500.

Average Rental Yield in Rawmarsh

The average rental yield in this area is 6.15%.

Average Property Prices in Swinton

The average property price in this area is £149,668.

Average Rental Yield in Swinton

The average rental yield in this area is 4.82%

(Average property prices were taken from Rightmove in late 2023, and the rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Rotherham to Invest in?

Generally, a high rental yield can be achieved in Rotherham thanks to the relatively lower property prices on offer. The best average yields can be found in the more inner-city areas, like Eastwood, where the property prices are exceptionally low. However, Eastwood has had some bad press in recent years, meaning the suburb and surrounding areas may not be that appealing to prospective tenants.

While the village of Rawmarsh is sometimes considered a more deprived area, the S62 postcode has been called one of the top 20 places in the UK for a family home based on local amenities. As a more affordable area, a good rental yield can be achieved here. Parkgate, which is classed as a ward of Rawmarsh, is even cheaper for property and can offer a higher gross average rental yield of 6.96%.

The S65 postcode is also home to University Centre Rotherham, a £10.5 million new facility for students and adult learners in the heart of Rotherham.

Many of the surrounding villages are too expensive to give a high rental yield, but there may be good deals in separate towns such as Swinton.

An increasing lack of supply to meet the growing need for housing has led to a boom in popularity for new-build properties across the UK.

A New Housing Project Development by Rotherham Council, for example, works with both the public and private sectors to nurture and boost the level of new residential developments within the region.

Despite a higher price point, new-builds are particularly sought after by buyers as a result of lower maintenance costs involved. Newer properties are also typically outfitted with the latest amenities and technology, making them particularly attractive to tenants.

More Information: Keep up-to-date with the latest market trends; take a look at the RWinvest Manchester New Builds guide!

Rotherham can offer a buy-to-let investor some good deals, and the average rental yields are high compared to other regions, especially those in the south of England, such as London buy-to-let. But overall, an investor is likely to find higher average yields elsewhere. For example, according to Zoopla, apartments for sale in Liverpool usually have one of the highest average gross rental yields in the country, standing at 7.21%.

The Yorkshire and The Humber region is also forecast to have good capital value growth in the next few years, meaning Rotherham property is well-placed to benefit. However, according to Savills, other UK regions, such as the North West and the North East, are also forecasted to experience 20.2% growth.