The buy-to-let boom is continuing, and investors are increasingly looking for new areas in which to invest.
Southampton might not seem like an obvious choice at first glance, but in fact it’s becoming a buy-to-let hotspot. New investment, a major university, and, of course, the airport, are all factors that contribute to sky-high rental yields: a survey last year suggested that the average yield in the area is close to nine per cent.
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So where are the best areas for buy-to-let in Southampton?
Buy-to-let hotspots in Southampton
The SO17 postcode includes Highfield, Portswood, St Denys, and Swaythling, situated to the north of the city centre. Highfield is the site of the University of Southampton’s arts faculty, and is therefore popular with students, but there are also a number of schools and colleges.
The average rental yield in SO17 is high, at 8.62 per cent. This is partly because the availability of rental property is low; figures earlier this year suggested that there were only around 100 rental properties available in the area. The median asking price for a property in SO17 is £181,000.
The SO16 postcode is situated in the north west of Southampton, and includes Bassett, Lordswood, Redbridge (not to be confused with the Redbridge in east London), Rownhams, Nursling, and Chilworth. Bassett is home to the University of Southampton’s Glen Eyre halls of residence, but SO16 is still popular with students looking for private accommodation, especially as the area also includes a relatively new university campus.
The average rental yield in SO16 is 5.51 per cent, in part lower than that in SO17 because there is more stock. An average property there will set you back around £185,000.
This postcode is situated in the south west of Southampton, and includes areas such as Shirley and Freemantle. There are a number of schools in the area, as well as a large number of amenities such as cinemas and pubs.
Rental properties in SO15 have an average rental yield of 5.27 per cent, but stock is also cheaper than in the areas we’ve already looked at: the median asking price is just over £17,000.
Finally, SO19 is situated in the south west of Southampton, adjacent to the southerly part of SO17. In includes Sholing, Thornhill, Woolston, and Weston. Sholing is an easy commute to central Southampton, as well as Portsmouth, as it has its own railway station, as well as a nature reserve. Thornhill, meanwhile, has four schools, including one for children with special educational needs.
Rental yields is SO19 are just above 4 per cent, while the average property asking price is around £175,000.
What should you look for in a Southampton buy-to-let investment?
There are great buy-to-let deals to be had in Southampton, especially in the student market. When making a decision on property, consider some of the following key factors:
- Transport links
- Proximity to universities, schools, and work hubs
- Regeneration projects
- Local amenities