Where to buy with a £25,000 deposit?

Wondering where to buy with a 25K deposit? Aspiring landlords who have a budget of £25,000 and are looking to invest in the buy-to-let sector may want to consider Hartlepool and County Durham.  According to data from the Hamptons estate agency these locations have been identified as offering the highest average gross yields in England and Wales for a 25% deposit and stamp duty.

In Hartlepool, the port town in North East England, an initial investment of £17,030 for a 25% deposit and £2,044 for stamp duty can secure a typical flat with an average gross yield of 11%. The town has a rental hotspot in the historic Headland area, where the average gross yield for landlords is 9.7%. For those who can stretch their budget a little further, a typical terraced house in Hartlepool could be a good option.  An upfront investment of £26,630 and an average gross yield of 9.2%.

County Durham, which is located next to Hartlepool, also offers promising returns for a budget of £25,000. With an average gross yield of 9.2%, landlords can achieve a typical double-digit yield of 10.3% by investing in a cheaper property type.  A landlord would need a combined £28,250 for a typical house in the area, including a deposit and stamp duty. This would provide an average yield of 8.7%.

Paul Gough, from We Love Renters, a property management company in Hartlepool, highlights popular property types: two or three-bedroom houses for families, old Victorian houses for one-bed apartments, and short-term lets for contractors. He notes significant government funding in the wider Teesside region, attracting numerous contractors and driving high demand for short-term accommodations.

Attractive Yields

Investors looking for attractive yields in the UK buy-to-let market should consider Hartlepool and County Durham, according to a recent report from Hamptons estate agency. With a deposit budget of just £25,000, landlords can expect an average gross yield of over 9% in both of these areas, outpacing the target income rate of 4% for a typical pension pot in drawdown.

Hartlepool

Hartlepool, located in the North East of England, boasts the highest yields for landlords with a modest investment of £25,000 or less. Cheaper property prices and high tenant demand in the North have driven up rental returns, making the region popular with investors. The port of Hartlepool is a rental hotspot for landlords with an average gross yield of 9.7%, while a typical flat in the area costs £68,130, requiring a deposit of just £17,030 and an additional £2,044 for the stamp duty. The average yield on this investment would be approximately 11%, one of the highest in the country.

County Durham

Additionally, investors can explore nearby County Durham, which offers the second-highest yields for a £25,000 budget. In this region, landlords can achieve an average gross yield of 9.2%, or even higher with investments in more affordable property types. For instance, the average flat in County Durham costs £76,020, requiring a combined deposit and stamp duty of £21,290. Terraced houses also present an opportunity, boasting an average yield of 8.7%.

As per Paul Gough from We Love Renters, landlords have primarily targeted three key tenant demographics in recent years. These groups consist of families desiring two or three-bedroom houses.  Single male tenants keen on converted Victorian one-bed apartments. Also included are contractors requiring short-term accommodations. Due to increased government funding and a rise in contractors in the broader Teesside region, short-term lets are especially sought after.

Hence, both Hartlepool and County Durham stand out as top options for investors seeking a modest £25,000 or less investment in the UK buy-to-let market. These areas promise attractive yields and a strong tenant demand, presenting substantial potential for savvy landlords who can navigate the regulatory environment.

NEPI

Specializing in North East England's residential buy-to-let market, North East Property Investment leverages extensive regional expertise and networks. This allows us to deliver a tailored comprehensive, and professional solutions for every client