York Buy-to-Let Guide

According to housesforsaletorent.co.uk, the average monthly rent in York is £1,080. York is more affordable than the UK average rent of £1,279 PCM, per the latest HomeLet Rental Index.

In 2020, York was found to be one of the UK cities with the most rapidly rising rents, and this growth has continued, with the average rent surpassing £1000 for the first time in 2023. However, the city’s rental market still retains strong demand, and there’s a chronic undersupply of available rental properties.

But this potential for high rental income doesn’t translate to wildly high rental yields. Gross rental yields are more modest but still decent in some areas, ranging from around 3-6%.

There is also consistent demand for student accommodation in York as there are two universities in the city, The University of York and York St. John University.

York City Centre offers all the amenities of city life but on a smaller scale. Residents can also conveniently travel to Leeds via a direct 22-minute train journey from York Station.

To the north, there are some upmarket and mid-priced areas, such as Clifton and Bootham.

At the same time, eastern suburbs are popular with students due to their proximity to The University of York’s Heslington Campus. This includes areas like Tang Hall, Heslington, and Heworth.

Other popular student areas include the City Centre and Fishergate, and The Groves is perfect for targeting York St. John students as the campus is situated there.

York City Centre

Average Property Prices in York City Centre

The average property price in this area is £400,024.

Average Rental Yield in York City Centre

The average rental yield in this area is 3.29%.

Average Property Prices in Heworth

The average property price in this area is £341,607.

Average Rental Yield in Heworth

The average rental yield in this area is 5.85%.

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

What is the Best Area of York to Invest in?

Compared to the average buy-to-let property for sale in the UK, properties in York are relatively expensive, but some areas can offer a decent rental yield thanks to the high rent that comes with such an in-demand area.

The property price tags in York City Centre are sizable, leading to a low gross rental yield. However, for those pursuing short-let visitors, a central property would be most advantageous, and with thorough research, it may be possible to turn a bigger profit than a buy-to-let residential property.

But in general, the surrounding suburbs can offer a more attractive rental yield, with yields of over 5% achievable in some areas.

Over the last few years, new-build properties have risen in popularity within the UK rental market. Having certain advantages over standard residential properties, this property type has stirred considerable interest from landlords and tenants alike.

Being brand-new developments, these require almost zero maintenance work or upkeep, meaning there is a faster turnaround for new residents to move in and for investors to start seeing returns.

The majority of new-builds are now incorporating the latest eco-technology in an effort to address rising eco-awareness within the population. Equipment like PV solar panels and mechanical ventilation heat recovery systems can significantly reduce energy bills by generating their own electricity and providing optimum energy efficiency.

The City of York Council has implemented the Housing Delivery Programme, which is committed to developing over 600 new homes across the region in council-owned sites. With a strong emphasis on innovative design principles (such as reduced impact on the environment and energy bills), this scheme aims to create a healthy and vibrant place to live.

Considering recent market trends, investing in new-builds could be a lucrative option for many investors.

However, while there are some new-build investment options in York, there could be a wider variety of opportunities in larger investment cities – such as Liverpool and Manchester.

Read More: Discover more about this investment trend with our recent buy-to-let guides, covering everything from new-builds in Poole to the latest UK hotspots!

York is a popular area with diverse property investment opportunities, offering high rental demand and decent rental yields. However, the property prices in this North Yorkshire city are higher than average and could be prohibitively expensive to many buy-to-let investors. Achieving much higher rental yields in areas with more affordable property and high rental demand is possible.

For example, apartments for sale in Liverpool typically see below-average property prices, offering some of the best rental yields in the country, according to Zoopla, hitting an impressive average of 7.21%.

Yorkshire and the Humber’s projected capital appreciation makes it attractive for buy-to-let investors who eventually hope to sell their property and make significant gains. Still, there’s no reason to restrict investment to this region. According to Savills, other areas, such as the North West, are predicted to experience the same growth.

Further Reading: Our recent Belfast buy-to-let guide delves deeper into the UK property sector, analysing the latest trends and statistics! Or, if you’d like to explore North West investment, our 2024 market report outlines the current property market in Liverpool.