sheffield buy to let
Photo of Hugh Sneddon By Hugh Sneddon

Where to look for a buy-to-let investment in Sheffield

Posted 15/02/2017

Over the past two decades, Sheffield has been transformed and the economic benefits of this have been seen with improved employment, increased Gross Value Added and raised house prices.

Still a quick growing economy – McLaren have just announced a new £50m manufacturing plant – the good wages and realistic property offerings mean that it is perfect for buy-to-let investments.

Previously we have looked at where to buy a house in Sheffield, here I’ve taken a look at some of the affordable areas of the city perfect for a solid return/yield – using the four postcodes with the highest number of rentals on the market.

The current average value in S2 is £113,491. In S3, this rises almost 14.5% to £129,922, jumping up to £172,222 in S6 and a further 6.5% jump to S8 where the current average is £183,437.

With the current number of rentals standing at 190 and S2 being the cheapest, this seems to be a no-brainer, but it’s all a question of yield. So what do we find?

  • S2 – average rent £921, leaving an expected yield of 9.74%.
  • S3 – average rent £666, expected yield of 6.15%.
  • S6 – average rent £770, expected yield of 5.37%.
  • S8 – average rent £562, expected yield of 3.68%.

expected rental yield

As we can see, as of today, finding a property near the city centre in S2 is going to get you the biggest expected yield. Not only are the prices less but the current rents are higher. There are always dips and changes in the property market and sometimes this can change yields and best purchases from month to month.

If you think you’ve found the perfect buy-to-let property or you’re interested in finding a diamond in the rough then get in touch with our Sheffield team for a chat about the intricacies of being a landlord in the city.

Did you see Ian Preston’s property market update for February? We’re making some big changes to how we work to ensure quicker enquiries and easier tracking for buyers and sellers across an even bigger area.

Posted 8 months ago

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