Wolverhampton Buy-to-Let Guide

Home.co.uk puts Wolverhampton’s average rental income at £1,081 pcm. Meanwhile, Homelet puts the average UK rent at £1,243 pcm. Judging by those figures, Wolverhampton rental costs are 13.9% cheaper than the rest of the country.

However, the average Wolverhampton rental yield is around 6.5%. This is 1.31% higher than the national average.

In addition, the West Midlands has experienced a rental growth of 11% over 12 months. This is the third-best in the country, behind Scotland and Greater London. The national average rental growth is 10.3% over the same period.

These figures suggest Wolverhampton is ahead of the national average when it comes to rental yield and growth. While rental income per month is lower, property prices are much lower as well. This will lead to a greater ROI and capital appreciation over a shorter amount of time.

Want to get started with UK property investment? Learn more about how to generate passive income with our updated beginner’s guide!

North Wolverhampton includes the following districts:

• Bilbrook
• Codsall
• Bushbury
• Fordhouses
• Pendeford

These areas offer good transport links thanks to the M54 and M6. They have modern residential properties in cosy housing estates. Nearby business parks make this area popular with workers.

In addition, Bilbrook and Codsall are a separate village. They have their own shops and amenities. 

Two train stations run through this area. They connect with Wolverhampton, Birmingham, Telford and Shrewsbury.

Average Property Prices in North Wolverhampton

Average property prices in the WV8 postcode are £384,500.

Average Rental Yields in North Wolverhampton

The average rent in WV8 is £867 (according to Houses for Sale to Rent). The area has an average rental yield of 2.7%.

Southern Wolverhampton includes the following localities:

• Graiseley
• All Saints
• Lanesfield
• Goldthorne Hill
• Parkfield
• Upper Penn
• Merry Hill

Some of these places cross over into Coseley and Sedgley, which fall under the Dudley Metropolitan Borough.

These areas include residential and commercial locations. Investors can find good-value properties in south Wolverhampton. As you’d expect, the suburban areas are more green. Wolverhampton’s southern district is well-placed for commutes to Birmingham, Dudley, West Bromwich and other parts of the West Midlands.

Average Property Prices in South Wolverhampton

Zoopla states that WV2 property prices are £181,451 on average.

WV4 is more affluent. The average price in this postcode is £235,811.

Average Rental Yields in South Wolverhampton

The average rental costs in WV2 are £742 PCM. Yields are 4.9%.

The average rental costs in WV4 are £850 PCM. Yields are 4.3%.

Wolverhampton may not be the most eye-catching city in the world. Yet, there are many reasons to consider the area for buy-to-let investment.

Population

Wolverhampton has one of the largest populations in England. The number of people surpasses 251,000. In addition, the West Midlands had a population of nearly six million.

In 2023, UK homes available for rent were 20-40% below pre-2020 levels. This means more people are competing for rental accommodation. As such, a big city like Wolverhampton will have a ready-made tenant base willing to pay premium rental figures. This will help investors see a better return on their investment.

Attractive to Students

Wolverhampton is one of the country’s new university cities. As such, buy-to-let investors may have luck with student accommodation and HMO properties.

The University of Wolverhampton started in 1992. The area offers low living costs and cheap accommodation. It is also within easy reach of Birmingham city centre – good for those student nights out.

Regeneration

Wolverhampton has gone through a period of decline in recent times. However, local authorities have many regeneration schemes in place. This will make the area more attractive to investors and tenants alike.

• The City of Wolverhampton estimates £4.4 billion will be invested in the area in the near future.
• Recent and upcoming regen schemes include:
• Wolverhampton Interchange is a hub for buses, trains, and metro.
• The i9 and i10 office developments
• Westside: a multi-million-pound development to introduce leisure attractions to the city centre
• Brewers Yard and Canalside: A New City Living Scheme
• Pendeford Business Park: business spaces that attract new companies to the area.
• The i54 business park: a new employment site responsible for nearly 3,000 new jobs

Investors may be able to find bargain investment opportunities in regeneration hotspots. Those properties will then grow in value, which can allow for greater capital appreciation once the area becomes more desirable.

While new-build properties can be more efficient investments, they often come with a higher price tag.

Opting for off-plan investment in new-build properties can offer investors increased affordability and convenience.

Engaging in off-plan property investment entails acquiring properties during the early stages of construction, usually at a rate considerably lower than standard market prices. This early involvement often results in heightened capital appreciation, with the property’s value progressively increasing as construction advances.

Additionally, newly developed properties tend to attract significant tenant interest, potentially leading to higher rental yields for investors.

Market research suggests that prime off-plan opportunities are frequently found in densely populated urban cities, especially those with dynamic infrastructure and ongoing regeneration projects. While there is potential for off-plan and new-build investment in Wolverhampton, investors may find greater success in UK cities with a higher concentration of ongoing construction projects, such as Liverpool or Manchester.

Read More: Discover more about this investment trend with our recent buy-to-let guides, covering everything from off-plan property in Dundee to the latest UK hotspots!