Peterborough’s Top Buy-to-Let Areas for First-Time Landlords04-01-2024 | East of England
If you are a landlord looking to invest in property in Peterborough, then you have come to the right place. Peterborough, a city located in the East of England is an attractive option for first-time landlords looking to invest in a buy-to-let property. In this guide, we will explore the best areas to invest in a buy-to-let in Peterborough as a first-time landlord.
This spirited city boasts a stable rental market with a strong potential for capital growth. Additionally, there is a growing population of young professionals, students and families.
Why you should invest in Peterborough
Situated 45 minutes away from London by train, Peterborough is a lovely town that has a lot to offer for the new aspiring landlord. One important reason for this to note is that the town has undergone a lot of development over the last few years, which offers more opportunities for property investors.
There has been regeneration work on Cathedral Square, St John’s Square, Long Causeway, and Bridge Street to name a few. As a result of this work being done, there have been new shops and restaurants opening up.
But besides the more commercial-type businesses that have opened in Peterborough, bigger regeneration projects are also taking place. There is a new project with the Station Quarter development taking place, as well as the new Anglia Ruskin University that is bound to bring in a new influx of students looking for accommodation.
As well as these two developments, there is Quay House; the first new build of the Government Property Agency within the Government Hubs Programme. The hub was opened to 1,200 civil servants in March 2023 with the means “to create a portfolio of regional office buildings for multi-departmental use. The programme is rationalising the government office estate across the UK to realise greater efficiencies and reduce carbon emissions.” (Government Property Agency, 1)
There are so many different things to do in Peterborough and activities that cater for all types of people. For starters, Peterborough is known for its picturesque cathedral in the city centre surrounded by green spaces like Nene Park and Ferry Meadows. To indulge in Peterborough’s railroad traditions, you can visit places such as Nene Valley Rail and Railword Wildlife Haven.
As with most big towns, Peterborough offers its locals live events and markets throughout the year. Alongside this, you will find that independent coffee shops and eateries never disappoint.
It is safe to say that Peterborough is filled with exciting things for families and young people to do. As a landlord investing in a buy-to-let for the first time, you will be sure to find something suitable for you.
According to GetAgent, the average price of properties in Peterborough is £305,193, as of 7 December 2023, and spend an average of 15 weeks on the market before being sold. Detached houses are currently priced at an average of £392,618, and flats at £94,500. Prices have decreased by 2% over the past 6 months.
Let’s look at the average price per type of property as of December 2023.
- 1-bedroom – £146,804
- 2-bedroom – £200,493
- 3-bedroom – £277,967
- 4-bedroom – £403,744
- 5-bedroom – £657,441
At the moment, Peterborough has a high demand for rental properties, and as a result of this, rent prices are increasing – the perfect rental market for a first-time landlord, don’t you think?
The reason for this type of market, generally speaking, is due to the imbalance between supply and demand within the housing market. This can also be attributed to the current economic climate globally. Rents in Peterborough are said to have risen by 10.7% in January 2023 compared to January 2022.
To summarise, it is safe to say that entering into the buy-to-let rental market as a first-time buyer in Peterborough is a great choice and will bring with it greater opportunities.
Top buy-to-let areas in Peterborough
Investing in property can be an exciting yet daunting prospect, especially for first-time landlords. Peterborough, nestled in the heart of England, offers a promising landscape for those seeking to venture into the buy-to-let market.
Peterborough’s thriving rental demand, strategic location, and diverse neighbourhoods offer prime investment opportunities. The city boasts a gross rental yield of 5.93%.
Property investors ought to know that the property market in Peterborough is quite different to other cities in England. As a one-time new town Peterborough has been master-planned around several different areas.
Each area is made up of many villages comprising private and social housing estates, with shops, schools, local amenities and lots of green space.
Peterborough’s different locations are linked to each area by parkways, making it easy to get around by car, bus or bike.
Situated in the south of Peterborough, Hampton has emerged as a thriving community for property investment. The area has a lot to offer its residents, including schools, modern infrastructure and recreational facilities.
Alongside this, Hampton is closely situated to business parks and big roadways, allowing for an easy commute to and from work. This, of course, adds to the appeal for people wanting to rent in this area and for landlords to invest in property here.
On average, pricing for renting out property in Hampton can be:
- 1 Bedroom: £625 per month
- 2 Bedrooms: £875 per month
- 3 Bedrooms: £1125 per month
- 4 Bedrooms: £1375 per month
Yaxley, a charming village just outside Peterborough, presents an opportunity for buy-to-let investors seeking a more tranquil setting. Its rural charm, community spirit, and proximity to major roadways make it an appealing choice. The demand for rental properties in Yaxley remains steady, particularly among those seeking a quieter lifestyle.
The main types of properties that can be found in Yaxley are a mix of detached, and semi-detached homes and townhouses. Being a village, there is a great community feel within the area and it is greatly suited to families wanting a more tranquil lifestyle.
Yaxley also has various schools, playgrounds, restaurants and cafés spaced out around the neighbourhood, ensuring that most of your needs are met within your vicinity.
As of November 2023, rent prices in Yaxley are as follows:
- One-bedroom – £550
- Two-bedroom – £750
- Three-bedroom – £1,000
Hampton Vale and Hampton Hargate
Boasting a modern look, Hampton Vale and Hampton Hargate are the places to be if this is the type of property you want to invest in as a first-time home buyer. There are various educational settings within this area, such as pre-schools, daycare centres and a primary school. For families with older children, there is also Hampton College.
Being two affluent areas within Peterborough, you can expect rental prices to be higher, with the average rent in Hampton Vale being higher than in Hampton Hargate. Rent in Hampton Vale starts at £650 per month for a one-bedroom, £950 per month for a two-bedroom, £1,250 per month for a three-bedroom, and £1,550 for a four-bedroom. When we look at Hampton Hargate, rent starts at £600 for a one-bedroom. £850 for a two-bedroom, £1,100 for a three-bedroom, and £1,350 for a four-bedroom.
Being a market town, Whittlesey has a lot to offer to residents, too. A market is held every Friday in the area, serving its community with fresh produce and allowing local businesses and traders to sell their products. Whittlesey offers a variety of options for its residents when it comes to leisure and sports activities, including schools and a Community College.
Rent starts at £700 for a one-bedroom property, followed by £838 for a two-bedroom, £1,109 for a three-bedroom, and £ 1,800 for a four-bedroom.
Werrington, situated in the northwest of Peterborough, appeals to both families and professionals. This suburban area offers a quieter lifestyle while maintaining good connectivity to the city centre. With schools, green spaces, and local amenities in abundance, it remains an attractive option for tenants seeking a peaceful residential setting.
The rent in Werrington as of October 2023 is as follows:
- 1 Bedroom: £575 per month
- 2 Bedrooms: £750 per month
- 3 Bedrooms: £925 per month
- 4 Bedrooms: £1,125 per month
- 5 Bedrooms plus: £1,250 per month
What to consider when looking to invest in a buy-to-let as a first-time landlord:
We‘ve mentioned this before, but becoming a landlord for the first time can be an intimidating process. There is a lot of information out there to digest, and you want to make sure that your money does not go into a bad investment, we get it! Because of this, we have put together some tips on what you can do as a first-time landlord to make the process easier.
Get professional advice
It’s important to get professional advice from a solicitor and surveyor before you buy a buy-to-let property. They can help you to ensure that the property is in good condition and that you are fully aware of the legal requirements.
Set a competitive rent
Research the rental market in the area that you want to invest in Peterborough and set a rent that is competitive but will still allow you to make a profit.
Be a good landlord
Treat your tenants with respect and try to be as helpful as possible. This will help you to build a good relationship with your tenants and will make them more likely to stay in your property for a longer period of time.
Invest in property management
If you don’t have the time or experience to manage your property yourself, it’s a good idea to invest in a property management company. This will save you time and hassle, and it will ensure that your property is well-maintained.
Get the right landlord insurance
Although not a legal necessity, taking the time to figure out the best type of landlord insurance for your property is worthwhile. When you have the right coverage for your property, you can rest assured that, should there be a disaster, your property is protected.
For the most competitive prices on landlord insurance that are never beaten, contact us at CIA Landlords on 01788 818 670 or email us at firstname.lastname@example.org.
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