Where to look for a buy-to-let investment in Doncaster
With a population that grows at around 0.2% a year, and house values that have risen by £2,328 (1.55%) to an average of £152,410, purchasing property in Doncaster seems like a risk-free option.
Being the second largest economy in the Sheffield City Region, Doncaster is a key part of growing a resilient and balanced local and regional economy. A well connected location, there is a growing engineering, logistics and manufacturing sector leading to steady growth in the labour and property markets.
In fact, the latest figures showed that unemployment had been cut in half since 2012 across South Yorkshire, and by 53% in Doncaster – down to 5,255 from 11,217.
I’ve previously looked at a few areas around the town for families, first-time buyers and investors in our where to buy a house in Doncaster but here I’ll take a fresh look on spots with a solid return/yield.
The current average value in DN1 is £97,800. In DN2, this jumps 22.75% to £122,900, jumping up to £138,400 in DN5 and a further 2% jump in DN4 to £141,300.
Between the four postcodes, there are 466 properties up for rent in Doncaster, mainly one and two bed but also quite a lot of three bed homes in DN4 and DN5. So, with around the centre being cheapest, is that the best expected yield?
- DN1 – average rent £421, expected yield of 5.17%.
- DN2 – average rent £462, expected yield of 4.51%.
- DN4 – average rent £482, expected yield of 4.09%.
- DN5 – average rent £483, expected yield of 4.19%.
As we can see, the central areas look to be offering the largest expected yields with similar rents per calendar month despite a lower average property value. This has to be taken with a caveat that some of the postcodes a little further from town are home to larger, rural houses which can skew the values.
Despite this, prices and rents can change and there are always diamonds to be found. Check out our new Buy-to-Let section that helps you to find suitable investment opportunities for more information. Alternatively, give our Doncaster team a call for more information.
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