Watford Buy-to-Let 2024 Guide

While Watford is close to the city, property prices are lower than buy-to-let property in London. However, prices are still considerably more expensive than the national average.

According to the HM Land Registry UK House Price Index, the average property price in Watford is £387,060.

Let’s break the average price down by property type.

• Detached properties in Watford cost £948,805 on average.
• Semi-detached properties cost £526,793.
• Terraced homes cost £414,427.
• Flats cost £272,253.

The average UK house price is £291,044.

This makes Watford 28.31% more expensive than the national average.

However, house prices in London are £527,979. This makes Watford 30% cheaper than London.

So, while prices are more expensive than average, Watford represents a good alternative for investors looking for a property that appeals to London-based tenants but does not come with the same hefty price tag that investing in property in London involves.

In addition, Watford is cheaper than the average property price in Hertfordshire (£456,377) but slightly more expensive than the average price in the East of England (£350,728).

According to Rightmove, people bought terraced houses more than any other property type in Watford last year.

Watford Town Centre and North Watford

Despite only being a town, Watford has a good city living sector, complete with various property types, amenities and a good nightlife. You can find traditional terraced housing, apartment blocks and converted flats in this part of town.

The northern suburbs include:

• Knutsford
• Cassiobury
• Meriden
• Nascot Wood
• Garston
• Leavesden
• Leavesden Green

These areas provide good access to Watford’s train stations. They also have good access to the M1, M25 and A41.

Nascot Wood is a popular residential area with a village-type atmosphere. It is popular with tenants and buyers due to top-quality local schools and proximity to the train stations.

Average Property Prices in Watford Town Centre and North Watford

The average property price in WD17 is £552,911.

The average property price in WD18 is £370,284.

The average property price in WD24 is £412,029.

The average property price in WD25 is £469,571.

Average Rental Yields in Watford Town Centre and North Watford

The average rental yield in WD17 is 2.98%.

The average rental yield in WD18 is 4.38%.

The average rental yield in WD24 is 4.73%.

The average rental yield in WD25 is 3.92%.

Southern Watford includes Eastbury and South Oxhey. The areas lead into Northwood, part of the London Borough of Hillingdon. Commuters can access the Northwood Station from these locations, allowing travel into London via the Metropolitan Line.

Average Property Price in Southern Watford

The average property price in WD19 is £490,098.

Average Rental Yield in Southern Watford

The average rental yield in WD19 is 3.65%.

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

Watford is a very popular place of residence, which has led to a high demand for available rental properties. In particular, new builds are a popular choice as Watford tenants compete for high-quality homes. According to a Dataloft report, around 45% of those moving to Watford are coming from London, meaning these new tenants are used to paying a premium on their rent and are willing to pay more for good quality.

But there is also a need for affordable housing, so the Watford Borough Council are working with various partners to encourage sustainable new-build housing strategies in Watford.

In terms of private developments, new build developments are quite common in Watford due to the prime location. New builds are usually concentrated in these high-demand areas close to London and major cities like Manchester and Liverpool.

However, Watford is generally an expensive area to invest in, so new-build properties usually come with a luxury price tag.

For those interested in investing in property in the UK, it’s essential to engage with the latest projections and analysis.

Recent predictions suggest that the South is likely to become more expensive over the next few years, with rental yields becoming less lucrative. According to this data, Watford is expected to follow a similar track.

With an average property price 28% more expensive than the national average and rental yields barely surpassing the national average, Watford could represent a meagre buy-to-let opportunity for property investors.

Investors looking for cheap buy-to-let properties could find more affordable properties in North West cities like Liverpool and Manchester, where rental yields typically exceed the national average.

That being said, Watford is not without its perks. The town manages to strike a balance between city living and an added rural charm. Its proximity to London is a huge selling point and makes the area desirable to many potential tenants. As such, the buy-to-let market enjoys high tenant demand, even if prices are steep.