An aerial view of Middlesborough with Riverside Stadium.

Middlesbrough, a successful industrial town located in the North East of England, has recently emerged as a hotbed for property investors looking for high rental yields with relatively low investment risks. This town, known for its robust industrial sector and revitalised urban centre, offers a unique combination of affordability and potential for growth. Here, we explore Middlesbrough’s top postcodes for savvy investors that present particularly attractive opportunities.

Why invest in Middlesbrough

But, let’s first take a look at the benefits of what Middlesbrough has to offer landlords and property investors looking to expand their property portfolio. 

Did you know that Middlesbrough is 70% cheaper to invest in compared to the rest of England? Here, detached properties sit at an average of £249,995, semi-detached properties sit at an average of £140,954 and terraced houses and flats sit at an average of £98,974 and £74,529. 

Rental yield

On average, renting a room in Middlesbrough will set you back about £449 per month. If you’re looking for a bit more space, a flat will cost approximately £610 per month, while houses, offering the most room, typically go for around £681 per month.

From this information, we see that the average rental yield in Middlesbrough stands at an attractive 5.6%. This suggests a solid opportunity for property investors, particularly if you’re targeting locations that offer yields above this average.

To put this into a broader perspective, the national average rental yield is about 5.2%. This makes Middlesbrough an appealing option for those looking to get more bang for their buck in the property market.

Regeneration projects in Middlesbrough

The transporter bridge in Middlesborough.

Middlesbrough has received a fantastic boost with an investment of £21.9 million from the Towns Fund. This initiative is part of the government’s broader strategy to enhance economic opportunities across various regions, aiming to balance prosperity more evenly across the country. 

The plan for revitalising Middlesbrough is driven by five key themes, each designed to transform the town’s economic and social landscape:

  • Transport and Connectivity: The aim is to improve all forms of travel, making it easier to get around and connect with other regions.
  • Urban Communities and Place-making: There’s a focus on developing new urban communities, enhancing job opportunities, and enriching the mix of leisure activities available.
  • The Middlesbrough Experience: The vision is to establish Middlesbrough as the premier destination in the Tees Valley, attracting visitors and residents alike.
  • Building a Knowledge Economy: Efforts are underway to boost the quality of life for residents through better education and training opportunities, fostering a climate of learning and innovation.
  • Enterprise Infrastructure: The plan includes delivering top-notch commercial spaces to attract and expand businesses, thereby creating more job opportunities.

This strategic blueprint promises to steer Middlesbrough towards a brighter economic and social future.

Middlesbrough’s top postcodes for savvy investors

Now, we’ll take a look at the best postcodes in Middlesbrough for landlords who want to invest in this North East city. 

TS1 – Central Middlesbrough

At the heart of Middlesbrough, TS1 is an ideal location for investors targeting the young professional and student markets. With Teesside University’s main campus centrally located within this postcode, there is a consistent demand for rental properties. 

The area’s ongoing development and proximity to amenities such as the Cleveland Centre, a variety of eateries, and cultural hotspots like the Middlesbrough Institute of Modern Art, make it highly attractive. 

Properties in TS1 tend to be more affordable than in larger cities, yet the potential rental yields are impressively high, averaging an incredible 9.5%. 

TS3 – North Ormesby and Berwick Hills

TS3, covering areas like North Ormesby and Berwick Hills, is another postcode offering excellent opportunities for investors. This area benefits from significant local investment and regeneration initiatives, enhancing its appeal to families and young tenants. 

The rental market here is buoyant, driven by affordable property prices coupled with strong rental demand. Investors can find great deals on traditional terraced houses, which are popular among long-term renters. The risk is mitigated by the area’s improving infrastructure and community resources, making it a safe choice for investors and landlords looking to expand their portfolios.

The average rental yield in TS3 is 7.63%. 

TS5 – Acklam and Linthorpe

For those seeking investment opportunities in more suburban settings, TS5 encompasses Acklam and Linthorpe, both of which are considered desirable residential areas. 

These neighbourhoods attract a mix of families and professionals due to their excellent schools, beautiful parks, and quality housing. While the initial property costs might be higher compared to TS1 and TS3, the stable demand leads to lower tenant turnover, which can provide a more predictable income stream and lower maintenance costs.

Investment Strategies for Middlesbrough

Investing in Middlesbrough’s property market requires a strategy that takes into account both the local economic landscape and the specific demographics attracted to each area. Here are some tips for prospective investors:

  • Research local market trends: Understanding which areas are up-and-coming and which are established is key to making informed decisions.
  • Focus on tenant needs: Tailor your property offerings to meet the needs of potential tenants. For instance, properties near the university should cater to student needs.
  • Consider long-term growth: Invest in areas with planned infrastructure developments or regeneration projects, as these will boost property values over time.

The advantage of Middlesbrough for property investment

Middlesbrough’s top postcodes for savvy investors offer a compelling blend of high yield and low risk for property investors. The town’s ongoing economic development, combined with its strategic location near major educational facilities and employment hubs secures its status as an attractive investment destination. 

The diverse range of postcodes with potential for high returns allows investors to choose properties that align with their budget and risk preferences, making Middlesbrough a savvy choice for landlords looking to grow their investment portfolios in the UK. 

So, which postcode will it be for you? 

If you’re looking for the most affordable and suitable rental property insurance quotes, then you’ve come to the right place. Our team of experts here at CIA Landlords know exactly what it takes to get the best quotes that are tailored to your needs. 

For more information on this, get in touch with us today at 01788 818 670

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