Royal Leamington Spa Buy-to-Let Guide

According to Rightmove, properties sold in Leamington Spa last year had an average price of £396,125. This is significantly more expensive than the UK average of £281,913, as stated by the UK House Price Index.

Leamington Spa’s average was 2% up on the previous year and 8% up compared to the 2020 peak.

Slow growth in 2023 was characteristic of the UK as a whole, as last year was described as a challenging year for the property market.

But is this subdued growth set to continue? Savills forecast that the West Midlands region will experience capital value growth of 20.2% by 2028, a much healthier picture compared to last year’s sluggish market.

Buildings in Leamington Spa include a variety of Georgian and early Victorian properties. The area is most famous for the stunning Regency architecture that lines the town’s wide boulevards, and there are many examples of these picturesque townhouses in central Leamington. A range of sizes are available on the Leamington Spa property market, including flats, terraced houses, semi-detached houses, and detached housing.

So, what’s the most popular type of property among Leamington buyers? According to Rightmove, most sales in Leamington Spa during the last year were semi-detached properties, going for an average price of £378,573 – terraced properties sold for an average of £371,958, with flats fetching £263,692.

Average Property Prices in Lillington

The average property price in this area is £459,151.

Average Rental Yield in Lillington

The average rental yield in this area is 3.74%.

Average Property Prices in Cubbington

The average property price in this area is £387,143.

Average Rental Yield in Cubbington

The average rental yield in this area is 4.51%.

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

What is the Best Area of Royal Leamington Spa to Invest in?

As mentioned, the northern areas of Leamington Spa are pricier, which typically results in a lower rental yield. Outer areas such as Cubbington are sometimes more affordable compared to upmarket suburbs within Leamington Spa, but southern suburbs like Whitnash seem to offer the best value, giving a more promising rental yield.

New-build properties are in high demand across the country as the undersupply of housing continues to be a nationwide issue. In Leamington Spa, the Warwick District Council has been working on providing new housing developments, and private developers have shown interest in the town as well.

However, as Leamington Spa is a smaller town known for distinctive architecture, ambitious new build projects often come under opposition from the local community. For this reason, most new developments are refurbished older buildings. There are also some new-build housing estates outside of the city centre.

When it comes to new-build investment, it seems that choices are quite limited in Leamington compared to other towns and cities. It may be worthwhile to expand the search to Coventry new-builds and other nearby areas to find more opportunities.

An attractive town like Leamington Spa is bound to attract investors searching for in-demand properties. However, other towns and cities seem to have more potential as property investment locations.

Property in Royal Leamington Spa is much more expensive than the UK average, and cheaper property with similar levels of high demand can be found elsewhere.

In particular, the North of England region is a hotspot for affordable property. For example, Manchester is considered one of the most significant cities in the North, with very high demand. However, the average property price is still below the UK average, standing at £249,633 in January 2024. Liverpool is much cheaper again, with an average of £176,371.

Northern cities also outperform Leamington when it comes to rental yields. According to Zoopla, Liverpool is one of the best cities in the UK for buy-to-let investment. Using their data, Zoopla calculated that Liverpool’s average gross rental yield is 7.44%. Any yield above 7% is considered an excellent yield for the UK.