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 it often places highly in rankings of the best buy-to-let hotspots.
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So where are the best areas for buy-to-let in Southampton for 2018?
Buy-to-let hotspots in Southampton
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 6.59 per cent for SO14 according to the latest buy-to-let hotspots map from TotallyMoney.com, with average rental values of £1,191.
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 4.96 per cent. The average asking price for a property in SO17 is currently £270,269. Average rental value is £1,117.
SO45 is some way out of Southampton’s central hub – in fact, to make the short jump from the area to the centre, you can take a ferry from Hythe.
The area has a great average rental yield of 4.46 per cent, although the average asking price for a property is £351,232. The average rental price is £1,305.
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 boast some impressive averages - rental yield of 4.26 per cent, asking prices of just over £245,113, and rental value of £871.
You’ll find districts like Lordswood and Bassett in SO16, north of the city centre. The University of Southampton’s Glen Eyre halls of residence is in Bassett and the university’s Science Park is also in the postcode area.
The average rental yield is 4.25 per cent, while the average asking price for a property is a little higher than some other areas in Southampton, at £306,270. The average rental price is £1,084.
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. It also has 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. The average asking price for a property in the area is £239,229 and the average rental price is £769.
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