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Investing in York: What the Experts Say

York is a quaint and picturesque city which has become a hot spot for property investment.

MENTION York and the first thing that comes to mind are cobbled streets, Georgian townhouses and medieval property steeped in Roman influence. Pretty. Idyllic. Serene.

But there’s more to York than mere charm. Property experts have touted York as the top rental cash cow in the UK — and it’s on paper, folks!

Investing in York?

CBRE released a report highlighting alternative cities for rental property investment (fig 1), and York is top on the list. Savills published a report of top 10 UK capital growth hotspots for 2015 – 2016 (fig 2) and York sits on top of the list – again .

Savills’ Top 10 Cities Capital Growth Hotspots 2015 – 2-16 Credit: Select Property
CBRE Top 5 Cities for Buy-to-let

The report cites that rental prices in York increased by a whopping 26% over 1 year, which is 7% more than the anywhere else in the UK (including London). Demand from students, who flocked to both of York’s universities (University of York and York St Johns University), and young professionals drove up monthly rents to £901pcm.

Why is York a Sought-After Market?

There is an excess of 21,000 students in York, but only 1,200 dedicated student beds available. York is experiencing a critical undersupply of student accommodation, which is why rental rates are rising and demand for student property is soaring.

This clearly supports our belief that London, while still presenting good capital growth (and particularly attractive for the cash-rich foreign investor), is overpriced and unable to provide the kind of rental yields that cities further afield are offering.

York’s housing supply is also limited by its natural beauty, national heritage and rich historic importance, thus making it a very sought-after market, and CBRE expects to see continued population growth there.

See also  Brexit and the Foreign Property Investor

In summary:

  • York has been named as the UK’s highest performing property market & the best place to make a buy-to-let investment (rental property investment)
  • There is limited supply and strong demand for property from young professionals and students
  • Rents increased by 26% last year to £901pcm – 7% more than anywhere else in the UK
  • Average house price growth: 3% to £228,907

Video credit: Select Property Group

Basically, if you want short-term liquidity and rental income, York is another fabulous option for the savvy investor. What investment opportunities are there in York? Find out here.

More Reading:

  1. Buy-to-let Investors Should Forget London and Head to York
  2. The 5 Best Cities for Rental Growth
  3. Property Investment: The Superstar Agents Who Put Buyers First
  4. London House Prices Most Overvalued, Says UBS
  5. Investment by Degrees: The Growing Market for University Pads

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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