Where to buy with a £25,000 deposit?

Wondering where to invest in buy-to-let with £25k? Areas like Hartlepool and County Durham offer promising opportunities with attractive yields exceeding 9%. 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.

Hartlepool Buy-to-Let
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 wondering where to invest in buy-to-let with just £25k, a typical terraced house in Hartlepool could also be a great option. An upfront investment of £26,630 for this property type offers an average gross yield of 9.2%, making it a viable choice for those considering investing in a terraced house.

County Durham Buy-to-Let
County Durham, 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 investment provides an average yield of 8.7%, making it a top choice for those with a £25,000 deposit.

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. For those wondering where to buy with a £25k deposit, these areas offer an average gross yield of over 9%, 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.

For those considering investing in a terraced house, Hartlepool remains a top choice. With slightly higher upfront costs of £26,630, these properties offer landlords an average gross yield of 9.2%.

County Durham

County Durham 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%.

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 tailored, comprehensive, and professional solutions for every client. For those figuring out where to invest in buy-to-let with just £25k, working with NEPI can be invaluable.