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, two universities, and an airport are all factors that contribute to strong rental yields.
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So where are the best areas for buy-to-let in Southampton for 2017?
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 almost 5.5 per cent according to the latest buy-to-let hotspots map from TotallyMoney.com.
The median asking price for a property in SO17 is currently £244,232, although there aren’t many properties on the market at the moment. Median rental value is just over £1,100.
The SO14 postcode covers part of the city centre and the smart Ocean Village complex, where you’ll find modern apartment blocks alongside restaurants, bars and cinemas. The Marlands shopping centre is also in this postcode, as are several of the city’s parks.
Because the Southampton Solent University campus is here, this is another good spot for student rentals. The latest data shows rental yields of just over 5.4 per cent for SO14, with median rental values of £1,153.
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 just under four per cent, with median asking prices of just over £260,000, and median rental value of £852.
Finally, SO19 is situated in the south west of Southampton, adjacent to the southerly part of SO17. It 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 in SO19 are almost at four per cent, with prices pushed up due to limited supply; at the time of writing, there are under 100 properties available to rent in this postcode.
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