Posts with tag: StripeHomes

StripeHomes researches regions with best rental yields in England

Published On: July 15, 2021 at 8:20 am


Categories: Landlord News

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The North of England currently provides the most valuable investment opportunities, research from StripeHomes shows.

Birmingham and Newcastle-based property developer StripeHomes has examined where buy-to-let landlords can find the best rental yields in England.

Regional average rental yields

Looking at regional data, the best buy-to-let yields can be found in the North East. The region is currently home to an average house price of £144,032 and an average rent value of £566 per month. The rental yield is 4.7%, above the national average of 3.9%.

Second on the list is Yorkshire & Humber, where the average house price is £179,408 and the average rent is £631 per month, providing a rental yield of 4.2%.

Third place goes to the North West, which has an average yield of 4.2%, followed by London, where high house prices are matched by high rent values to create a yield of just under 4%. 

Rounding off the top five is the West Midlands, where an average house price of £216,973 meets an average rent value of £697 per month to create a rental yield of 3.9%.

The current average yield in each region of England

LocationAverage house price
April 2021
Average rent per month
March 2021
Rental yield
North East£144,032£5664.72%
Yorkshire and The Humber£179,408£6314.22%
North West£183,299£6364.16%
West Midlands Region£216,973£6973.85%
East Midlands£213,308£6603.71%
South West£279,951£8403.60%
South East£341,358£9993.51%
East of England£313,964£8893.40%
England£268,380£8643.86% – UK House Price IndexOffice for National Statistics – Private Rental Market Summary

Rental yields of towns and cities

Taking a closer look at the rental yields of individual town and cities, the best rental yields for buy-to-let landlords in England are found in Newcastle-upon-Tyne. With an average house price of £177,821 and average monthly rent of £844, the city offers a rental yield of 5.7%.

Blackpool is close behind with an average house price of £116,939 and an average rent of £540 per month, creating a rental yield of 5.5%.

Stoke-on-Trent can also provide a rental yield of 5.5%, while Burnley in Lancashire and Knowsley in Merseyside both offer rental yields of 5.4%.

The areas of England with the highest average rental yield at present

LocationAverage house price
April 2021
Average rent per month
March 2021
Rental yield
Newcastle upon Tyne£177,821£8445.70%
County Durham£117,576£5025.12%
Blackburn with Darwen£127,154£5114.82%
City of Nottingham£172,540£6824.74%
Barking and Dagenham£312,288£1,2264.71%
City of Bristol£306,482£1,1964.68% – UK House Price IndexOffice for National Statistics – Private Rental Market Summary

James Forrester, Managing Director of StripeHomes, comments: “It’s great to see a number of areas presenting strong yields to buy-to-let investors despite the government’s best efforts to reduce profit margins in an attempt to disincentivise landlords and free up housing stock for general homebuyers. 

“As the backbone of the rental market, the buy-to-let sector plays an incredibly important role in providing many with a place to live, but we simply can’t expect the nation’s landlords to provide this service at a loss. 

“However, the year ahead looks positive and with travel restrictions lifting, a return to face-to-face teaching at universities as well as a return to the physical workplace, increasing demand should help boost many areas of the market.”

New research highlights why and where to invest in new-build homes

Published On: June 24, 2020 at 8:03 am


Categories: Property News

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Have you been considering investing in a new-build property? New research from property developer StripeHomes has been conducted to pinpoint the best areas for such an investment.

The research looked at price premiums, affordability, and house price growth.

New-build price premiums

This research found that the average costs of a new-build in the UK is currently £302,749. This is 33% more than the existing UK house price. Looking at reginal new-build price premiums, it is 60% higher in the North East, 45% in the North West, and 34% in the East of England. London shows the smallest gap at 10%.

Most affordable

It is possible to find new-builds that are more affordable than buying an existing property. StripeHomes says there are as many as 40 UK areas where this is possible. Surrey Heath is top of this list, with the average new-build costing £281,973 (27% cheaper).

The lowest average cost for a new-build can be found in Hyndburn, at £97,939. Close behind are North Ayrshire (£115,305) and Burnley (£122,193). 

Higher house price growth

For those looking to invest and sell on, this research also looks at the appreciation in property values. In the last year, the average UK new-build has increased by 7.3%, compared to just 1.5% for existing homes. 

StripeHomes reports that new-build house price growth has increased by 6-8% across every UK region in the last year. Meanwhile, the market for existing property has only seen a growth of 3% in the best performing regions.

Strong growth has been noted for London, where new-builds are up 7.6%, compared to 1.2% for existing properties. The South East, East of England, South West and North East have also seen some of the strongest new-build house price growth.

Managing director of StripeHomes, James Forrester, commented: “Opting to purchase anything brand new is going to cost you more but when it comes to new-build homes, the premium is often justified and well worth the additional cost. 

“Buying a new-build comes with a whole host of benefits, not just an easier, chain-free sales process with the ability to move straight in. There are a host of incentives available such as paid for stamp duty and help for first time buyers, as well as the fact that new-build homes are often better quality, more energy-efficient, and require little to no maintenance for a good number of years.

“However, the real benefit of a new-build is the appreciation of its value. Despite the tough market conditions seen pretty much since the Brexit vote itself, new-build values have continued to go from strength to strength, far outperforming growth seen in the existing sector.  

“So not only will you purchase a far superior property, but even in areas with the highest new-build premium, it will only take a matter of years before you’re likely to recoup the additional price paid in house price growth.”

All data on new-build and existing house prices sourced from the ONS.

invest in new-build homes
invest in new-build homes