Why you should invest in buy-to-let in Coventry

Coventry is a city that marries historical charm with dynamic growth, making it a magnet for buy-to-let investors, such as yourself. Whether you’re drawn to the vibrant student population, the burgeoning tech industry, or the cultural richness, Coventry’s property market offers a canvas of opportunities. Here, we explore the best areas in this thriving city to invest in buy-to-let property. 

Introduction to Coventry

Coventry, nestled in the heart of England, boasts a rich tapestry of history dating back to the mediaeval era. Known for its pivotal role during the 11th century as a major centre of the cloth trade, the city flourished economically, which paved the way for its historical significance. 

The city’s resilience shone through during the Second World War when it suffered devastating bombings during the Blitz, leading to the near-total destruction of its historic cathedral. This event is commemorated by the modernist new Coventry Cathedral, standing beside the ruins of the old, symbolising peace and reconciliation. 

Over the centuries, Coventry has reinvented itself, from a hub of the British motor industry to a modern city with a vibrant cultural scene, all the while retaining its rich historical heritage and community spirit.

Why invest in a buy-to-let Coventry?

Now that we have an overview of the city’s history, let’s take a look at why you should be investing in a buy-to-let in Coventry as a landlord. 

Regeneration projects

There are a few regeneration projects in motion in Coventry which will benefit both you, as a landlord, and your tenants. 

City centre cultural gateway

The building that once housed IKEA is getting a fantastic makeover and will soon emerge as the City Centre Cultural Gateway (CCCG). This transformation is set to turn the spot into a buzzing landmark destination. Imagine a place where transport, technology, and the vibrant worlds of creativity and culture all come together – that’s what CCCG aims to be. It’s all about creating a community hub that invites everyone to engage and explore.

This regeneration project will also be a new home for some of the nation’s most treasured collections and a breeding ground for cutting-edge research facilities. 

Completed city centre improvement projects

There are various regeneration projects taking place that aim to transform Coventry’s centre. These projects include:

• Completed improvement works
• Upper precinct, Market way and Smithford way
• Hertford street
• Bull yard
• Coventry Railway Station
• Pepper Lane

Friargate

Friargate will be Coventry’s vibrant mixed-use hub where everything the city needs comes together under one eco-system. The mixed-use infrastructure will be a bustling district where sleek offices, cosy cafes, exciting retail spaces, leisure facilities, a chic hotel, and modern residential areas all mingle. 

Friargate’s ambitious master plan is painting a future of up to 2.35 million sq ft of innovative development. This isn’t just about buildings; it’s about creating a dynamic community where businesses thrive, people connect, and creativity flows. Friargate is set to redefine urban living and working, making it the place to be in Coventry and creating vast opportunities for investors and landlords.

Coventry rail station

This initiative was all about creating a station that would welcome more passengers and make getting around a breeze. The amount of £82 million, with the help of the West Midlands Combined Authority and the Coventry and Warwickshire Local Enterprise Partnership Growth Deal, was invested to boost the station’s accessibility and capacity. Works to the station included: 

• Creating a second footbridge connecting all four platforms via stairs and lifts and extended platform canopies.

• A second station entrance building.

• A 633-space multi-storey car park.

• Creation of a new taxi loop.

Things to do in Coventry

As you can imagine, there is a lot to do in Coventry. Here are a few examples of what your potential tenants could get up to during their spare time: 

• The Coventry Transport Museum: where the world’s largest collection of British road transport in public ownership can be seen.
• Coventry Cathedral: a historic site that was re-opened after the 1940 bombing, rebuilt containing some of the finest 1950s and 1960s art.
• Coombe Abbey Park: for those who love greenery and nature, this park offers 500 acres of lakeside walks, bird watching and beautiful gardens. 
• Belgrade Theatre: for those theatre lovers, Belgrade Theatre offers a cultural experience. 

Property market overview

Coventry’s property market offers some real gems at prices that are a bit easier on the wallet compared to the national average. As of November 2023, HM Land Registry tells us that the average house price in Coventry sits at £220,658, which is quite a bit less than the UK-wide average of £284,940. 

For those on the hunt for a deal, Coventry could be your treasure trove. Whether you’re stepping onto the property ladder for the first time or you’re an investor scouting for a bargain, Coventry’s market is worth a closer look.

Rental demand

According to Home’s rental market summary, the average rent per calendar month in Coventry is £1,234. The average rent for a one-bedroom property is £715 pcm, a two-bedroom is £1,063 pcm and a three-bedroom is £1,307 pcm, with a rental yield of up to 7.9%. According to this information, investing in property in Coventry is a lucrative investment. 

The best areas to invest in buy-to-let in Coventry

So, where are the best areas to invest in property in Coventry then? 

Coventry City Centre

We start by looking at Coventry’s city centre with a population of approximately 17,000. As we all know, city centres are usually busier and laden with students and young professionals, making it a great opportunity for you as a landlord. The average asking property price here is £150,000.

Rental yields in the Coventry CV1 postcode area are around 5.6%. 

North Suburbs

Northern Coventry suburbs include places such as Radford, Holbrooks, Foleshill, Longford, Aldermans Green, Neal’s Green, Hawkesbury and the village of Keresley. The average population here is approximately 180,000 and the average house price ranges between £165,000 and £190,000. 

Average rental yields in this area range between 4.6% and 5.9%.

East Suburbs

Suburbs in this area include Henley Green, Wyken, Stoke, Binley and Binley Woods just outside the city itself. Also, the University Hospital Coventry and Warwickshire is situated here, which opens up opportunities for hospital staff buying and renting.

This area has an average population of approximately 38,000 and an average asking price that ranges between £130,000 and £230,000 for housing. 

The average rental yields in this area lie between 4.6% and 5.4%. 

South Suburbs

The villages situated within this area include Baginton and Ryton on Dunsmore and also include the suburbs of Stivichall or Styvechale and Willenhall. The approximate population here is 92,500 and the average house price here ranges between £200,000 and £300,000. 

The average rental yield in the south suburbs of Coventry is 4.6%. 

West Suburbs

Western suburbs include Coundon, Spon End, Earlsdon and Canley, Allesley, Eastern Green, Westwood Heath and Tile Hill. The approximate population is 49,500 and the average asking price for a house ranges between £185,000  and £350,000. 

A great perk for investing in this area is that the University of Warwick campus is situated in this area, and brings with it a lot of job opportunities, resulting in a strong demand for buy-to-let property. 

The average rental yield for this area is between 4.6% and 5%. 

Coventry’s property market is as diverse as the city itself, offering something for every type of investor. From bustling city centre apartments to serene suburban homes, the key to success lies in understanding the unique character and tenant demand of each area. With Coventry’s ongoing growth and development, now is an opportune time to explore the potential of buy-to-let investment in this vibrant city. 

For more information on buy-to-let insurance as a landlord, contact us on 01788 818 670 today!