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Worcester Buy-to-Let Guide

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    Everything You Need to Know About Worcester Buy-to-Let

    Worcester is a city on the banks of the River Severn, home to a university, cathedral and almost 100,000 locals. The area has a rich heritage thanks to its part in the English Civil War. In addition, Worcester also boasts good transport links connecting to the Midlands, Wales and the South West.

    But what does this charming city offer to those investing in property in the UK?

    Today, we’re covering Worcester’s position among the UK’s best property investment areas. As well as diving into the city’s house prices and rental market, we’ll look at what Worcester offers prospective housebuyers investing in property.

    Let’s get into it!

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      Worcester Riverside

      Buy-to-Let Property Prices in Worcester

      Worcester is a city that sits just below the UK average regarding property prices.

      According to the HM Land Registry, the average cost of buy-to-let properties in Worcester is £266,072. In addition, property growth in the city was recorded at 2.40% year-on-year.

      If you were to buy a detached property in Worcester, you would pay £443,912. Semi-detached homes would cost around £274,210, while terraced houses and flats would cost £221,982 and £145,447, respectively.

      However, if we look at the average house price in the UK, it currently stands at £292,882, with a price growth of 0.80% year-on-year.

      Rightmove states that most property sales in Worcester during the last 12 months were for semi-detached homes. The property website also shows that prices are 2% cheaper than a year ago.

      This could be down to high inflation and substantial interest rates throughout 2023. However, mortgage rates and inflation decreased significantly in the latter months of the year.

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      Worcester aerial view

      Buy-to-Let Rental Market in Worcester

      According to the Worcester Market Rent Summary on Home.co.uk, the average rent in Worcester is £1,006. Those figures also show that a room will cost £672 PCM on average, while a flat or house will command an average rent of £861 PCM or £1,036 PCM respectively.

      The average West Midlands rent is £940 PCM, according to the Homelet Rental Index, making Worcester slightly more expensive than the regional average,

      However, Worcester offers better value for tenants when compared to the national average, which stands at £1,279.

      Despite this, if we take the average rent and property price, Worcester has an average gross rental yield of 4.53%.

      With the national average currently around 5.2%, investing in Worcester could be slightly riskier than in other higher-yielding areas.

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      Worcester riverside

      Buy-to-Let Investment in Worcester: Area Breakdown

      Please note: The prices in this section come from Rightmove, while rental yields are calculated using the information on Housesforsaletorent.co.uk.

      Worcester City Centre

      Worcester city centre is a commercial district with a limited residential scene, especially compared to cities like Liverpool and London. That said, you can still find some properties in the city centre, predominantly apartments, terraced housing and period-style properties.

      In the suburbs surrounding the city centre, you can find properties built in the 50s and new-build homes. There are also bungalows, detached properties and semi-detached houses as well as some airbnb investment property opportunities.

      Average Property Price in Worcester City Centre

      The average property price in WR1 is £193,480.

      Average Rental Yield in Worcester City Centre

      The average rental yield in Worcester City Centre is 4.68%.

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      A fabulous view of traditional English terraces houses/properties covered by the snow during the winter season. Worcester, United Kingdom, UK. The beast of the East storm.

      East Worcester

      East of the River Severn, you can find the following areas:

      • Barbourne
      • Berkeley Beverborne
      • Berkeley Alford
      • Blackpole
      • Brickfields
      • Claines
      • Cornmeadow Green
      • Lyppard Hanford
      • Merrimans Hill
      • Ronkswood
      • Rainbow Hill
      • Warndon

      This part of the Worcester area has numerous new-build villages and business parks, boosting the residential market. The area has good transport links to the city and access to the M5 and A449 for people who need to get to other parts of the West Midlands.

      Average Property Price in East Worcester

      The average property price in WR3 is £325,322.

      The average property price in WR4 is £235,159.

      Average Rental Yield in East Worcester

      The average rental yield in WR3 is 3.11%.

      The average rental yield in WR4 is 4.09%.

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        Worcester riverside

        South Worcester

        South Worcester suburban areas include:

        • Broomhall
        • Battenhall
        • Brockhill Village
        • Cherry Orchard
        • Copperfields
        • Diglis
        • St. Peters

        Diglis is the meeting point between the River Severn, Worcester, and Birmingham Canal. The area has undergone redevelopment to create an attractive waterside quarter.

        Average Property Price in South Worcester

        The average property price in WR5 is £295,817.

        Average Rental Yield in South Worcester

        The average rental yield in WR5 is 3.58%.

        Worcester Building

        West Worcester

        The western Worcester suburbs include:

        • Crown East
        • Lower Wick
        • Dines Green
        • Henwick
        • St. Johns

        These areas are near the University of Worcester Henwick campus and have amenities. However, reaching Worcester city centre and the M5 motorway is more challenging in this part of town.

        Average Property Price in West Worcester

        The average property price in WR2 is £303,893.

        Average Rental Yield in West Worcester

        The average rental yield in WR2 is 3.53%.

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          Why Should You Consider a Buy-to-Let Investment in Worcester?

          Student Population

          The University of Worcester is based in Henwick. Currently, over 10,000 students study at the university, meaning there is an opportunity for buy-to-let investors to enter the local student property scene. The most popular student areas are in the western part of town, close to the main University of Worcester campus, plus the city centre, where students can enjoy Worcester’s nightlife. The university has several campuses – St John’s, City, Severn, and Lakeside Campus – so investors may have some luck purchasing a buy-to-let flat or house near any of these locations.

          Transport Links

          Worcester is an excellent city for people travelling to Birmingham, the wider West Midlands, South Wales, and the Southwest. As such, it appeals to those who need to commute around the region.

          Worcester is close to Junction 6 and 7 of the M5 and has three train stations: Worcester Foregate Street, Shrub Hill and Worcester Parkway. These stations allow easy access to Hereford, Birmingham, Bromsgrove, Kidderminster, Bristol, Oxford and London.

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            Worcester New-Builds

            The lack of new housing to accommodate rising demand has resulted in the growing popularity of new-builds across the UK, and Worcester is no exception.  

            Worcester City Council have introduced various regeneration schemes to enable new affordable housing in the area. New-build properties are popular with tenants and landlords alike.

            For tenants, properties like these are usually outfitted with the latest trending amenities – such as spas and cinema rooms. Typically, eco-technology (for example, solar panels and air source heat pumps) is at the forefront of design, meaning lower energy bills and more eco-friendly appliances. 

            New-builds often require less upkeep for landlords and offer significantly lower maintenance fees, resulting in a more affordable investment.

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

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            Off-Plan Property in Worcester

            High levels of regeneration within an area are also typically followed by the introduction of new-build properties from private developers. 

            In Worcester, significant infrastructure improvements to the city and town centre are expected throughout 2024 to boost growth and the local rental market.

            However, one of the downsides to investing in new-builds is that they often inspire higher costs compared to standard residential developments.

            Investing in off-plan properties is one way to mitigate these higher costs. This strategy involves purchasing a new-build while still in the developmental/construction phase, meaning that costs are often well below market value. Flexible payment plans are also available, increasing the likelihood of a more affordable investment.

             

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              How Does Worcester Compare to Other UK Regions When It Comes to Buy-to-Let?

              If you are looking to buy-to-rent for the first time, you need to know what to look for in a buy-to-let property.

              Firstly, you’ll want to find good value properties. Does Worcester offer this? Yes and no.

              While properties in Worcester are cheaper than the national average, other places in the UK can typically offer even better value for money, such as Liverpool, which has an average property value of under £180,000 (according to HM Land Registry). You can also find good-value Wolverhampton property investment opportunities if you want to stick to the West Midlands.

              Secondly, you’ll also want to ensure the area has sufficient tenant demand, driving up rental prices. Worcester’s rental yield is just under 5%, less than the national average. However, if you look further north, you’ll find places like Liverpool and Manchester with much higher rental yields, sometimes exceeding 7%, depending on the postcode.

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              Want to Invest in Worcester in 2024?

              So, is it worth investing in Worcester?

              Worcester has good value properties if you want to stay in the West Midlands. Worcester also has a substantial population of over 98,000. However, the rental yield leaves a lot to be desired. As a student city, you may have some luck in student properties. However, for those seeking more substantial ROI, it might be beneficial to look elsewhere.

              If you would like to know more about the best places to invest in UK property, feel free to check out the following guides:

              Map of Worcester

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              Author

              Dale Barham

              Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

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