Are you considering investing in the buy-to-let market but unsure where to begin?
If so, Doncaster could be the place for you. It has a thriving property market.
Here, there’s high demand for rental homes.
But what should buy-to-let investors know about Doncaster?
Read on to find out.
Why Doncaster is an ideal location for buy-to-let
The population is expanding in Doncaster. And it’s a great city to live in. So, there’s an increased the demand for rental homes.
The town is also well situated. It provides quick access to large cities like:
- Sheffield
- Leeds
- Manchester.
The fact that property prices in Doncaster are quite low. It is one of the main benefits of investing in the buy-to-let market there.
The possibility for strong rental returns is another benefit.
Due to the high demand for rental properties, landlords may set competitive rents. This can produce a consistent flow of money.
Doncaster property market
The rising demand for rental homes is one of the main elements that make Doncaster desirable.
The town has an expanding population and need for more affordable housing.
Investors now have the chance to produce a consistent revenue stream.
The town features various homes, from classic terraced houses to contemporary flats. SO, investors wishing to buy houses in the region have several possibilities.
Investors can invest more in historical or contemporary homes with better rental yields.
Best areas for investing in Doncaster
Town Centre
Doncaster’s town centre features:
- Major transport infrastructure
- Significant development funding
- A new university campus.
The areas near the train station and Waterdale are particularly sought after.
And other parts, like North Bridge, are gaining popularity. So, there’s potential for buying at lower price points and benefiting from regeneration.
Wheatley
Wheatley is two miles from Doncaster town centre. It has excellent connectivity via the A638 and a direct bus route.
It has long been a more affordable Doncaster suburb. It offers a blend of Victorian terraces and more modern housing.
Wheatley delivers opportunities with average house prices in the region of £139,000. And it is in demand from younger professional tenants working in town.
Bessacarr
Bessacarr to the east provides family homes spanning detached, semi-detached and mews-style properties.
Housing growth continues around the Bessacarr Farm development zone. Property costs may be higher than in some other areas. The area’s popularity among families thanks to its proximity to good schools.
Stronger long-term tenant commitments also appeal to investors here.
Balby
Just north of the town centre, Balby offers a mix of housing. This ranges from stone-built period terraces to more modern developments.
It’s affordable and located close to local shops, parks, and good bus routes.
With many new builds emerging, it provides opportunity to see long-term capital appreciation.
Woodlands
For anyone seeking high rental yields from students, Woodlands is an attractive proposition. It’s close to Doncaster University.
Purpose-built student blocks have added stock here. But there’s still opportunity to acquire supplementary shared houses and HMOs.
Average house prices in Doncaster
Compared to nearby Sheffield and Leeds, Doncaster remains highly affordable.
According to Rightmove data, the average asking price for houses is about £178,000.
This represents more than £50,000 savings over Sheffield’s mean of £237,000. And more than £70,000 less than the £250,000 average in Leeds.
Average rental price in Doncaster
Meanwhile, the average monthly rent in Doncaster currently sits at approximately £650.
Bit it’s possible to achieve higher rental figures closer to the £800 range. Landlords can secure strong rental yields here by lowering purchase costs.
Ongoing investments are bringing jobs and infrastructure upgrades. So, Doncaster is positioned for steady, sustainable growth.
Council tax tenants can expect to pay in Doncaster
Council tax rates represent an added cost for tenants.
On average, council tax falls between Band A, at £1,385 per year, and Band D, at £1,969 annually, as of 2023.
A significant portion of Doncaster’s rental stock is categorised as Band A or B properties. Many tenants find themselves on the lower end of that range.
Prospective tenants should budget at least £115-165 per month for council tax.
Opportunities for investment in Doncaster
Doncaster investors have various choices when they engage in the buy-to-let sector. The town’s robust rental industry is one of the key opportunities.
Rent yields provide investors with a reliable source of income. This is due to the expanding population and increased demand for rental properties.
Investors seeking dependable, long-term income will find this to be very appealing.
Doncaster’s has a great strategic position and easy access to job possibilities.
Many are also drawn to here because it offers an cheaper option to large cities like Leeds or Sheffield.
Investors can now capitalise on a renters searching for inexpensive home choices.
The affordable housing in Doncaster presents another chance for investors. Doncaster has rather low housing costs compared to other parts of the UK.
So, investors can buy houses for less. This will lead to longer-term investments with larger returns.
Also, a wider spectrum of investors may enter the market. With lesser initial investment because real estate prices are lower.
The wide range of homes accessible in Doncaster are also helpful to investors.
The town features a variety of buildings. This ranges from classic terraced homes to contemporary apartments.
This means that investors have a choice of properties to pick from.
Obstacles to investing in buy-to-Let Properties
There are a few difficulties that investors should be aware of. One of the greatest difficulties is contending with rival landlords.
Due to competition, some landlords drop their rental rates. Or provide more incentives to entice renters, which might reduce profitability.
Tenant problems might present investors with another obstacle. Some might miss rent payments or damage the property.
This can affect the property’s profitability. So vetting potential tenants is essential.
Managing and maintaining properties may also provide difficulties for investors. Some investors outsource this to a property management businesses.
Remote property management may be challenging and time-consuming. Especially if problems emerge after hours.
Should you invest in buy-to-let properties in Doncaster?
Doncaster’s buy-to-let market offers a variety of prospects for investors, including:
- A robust rental market
- reasonable home prices.
The town’s expanding population, thriving economy and student population attract investors.
But other difficulties exist. Competition from other landlords and problems with renters still occur.
So, researching each property and considering property management companies are important. This entails:
- In-depth tenant screening
- Exploring the rental market in the area
- Planning the upkeep and administration of the property.
Selling rental properties in Doncaster?
If you’re looking to sell tenanted properties in Doncaster or elsewhere, we can help.
We are cash home buyers that operate in Doncaster and elsewhere across the UK.
We’ll even buy your property with tenants in situ. This enables you to keep collecting rent right up until the sale completes.
