With affordable prices, solid rental yields and exciting regeneration plans, many buyers are circling Doncaster’s large South Yorkshire town as a potential property hotspot. But does it stack up in 2024 if you want to move on in the housing market?
We look closer at Doncaster and whether now is a good time to buy property in Yorkshire.
Is Doncaster an excellent place to invest in property?
Doncaster is increasingly attracting the attention of investors and homebuyers alike who are searching for an opportunity in Yorkshire’s property market. The town offers an affordable entry point, strong rental demand, and the potential for robust capital appreciation, painting a promising picture for those considering property investment in Doncaster.
Let’s start with pricing. Current data shows the average Doncaster property costs just £215,630. That’s considerably lower than the UK average of £288,000 and the regional average for Yorkshire and the Humber, which is £237,835. This gives investors more value for their money and makes homeownership attainable for buyers.
Despite the low entry point, Doncaster isn’t being left behind on price growth. According to some estimates, property values in the town have climbed 6% annually. These figures bode well whether you’re a homeowner looking to build equity over time or an investor counting on capital gains. The all-around prospects are compelling when combined with Doncaster’s robust and consistent rental demand, offering a secure and profitable investment opportunity.
Is Doncaster an up-and-coming area?
Doncaster is on the rise, undergoing significant regeneration and development. This transformation is enhancing the town’s appeal for both homebuyers and renters, making it a promising area for investment.
Along with its affordability, things to do and see, and connectivity, Doncaster’s revitalisation efforts are another draw.
Doncaster Urban Centre Masterplan
A comprehensive master plan aims to transform Doncaster’s core, enhancing green spaces and waterways and developing the civic and cultural quarters. It includes building on the success of existing markets while adding new cultural venues and business assets to drive economic growth.
Waterfront development
The waterfront area is another primary focus, with plans for new residential and commercial developments, including a marina basin and improvements to the public realm. Creating attractive serviced development plots is expected to attract further investment.
Town centre regeneration
Doncaster is revamping its cultural and public facilities in the town centre through projects like the new Danum Gallery, Library and Museum. Enhancing the market area is also a priority.
Waterdale regeneration
This initiative, funded by the National Levelling Up scheme, aims to breathe new life into the Waterdale district through new housing, commercial spaces, and improved public spaces.
Connectivity
Doncaster’s central South Yorkshire location offers easy access to economic hubs like Leeds and Sheffield. Transport links are generally excellent via the M18, A1(M) and East Coast Mainline. Whether you’re commuting or looking for easy access to other parts of the country, Doncaster is well-connected.
Best areas to buy a home in Doncaster
Buyers in Doncaster are spoiled for choice when looking at specific areas to purchase property. Whether you prioritise affordability, attractions, commuting options, or that coveted village charm, Doncaster has multiple appealing neighbourhoods that tick different boxes.
Bentley
Bentley is highlighted as an excellent place for property investment and benefits from its proximity to the town centre and ongoing regeneration initiatives. A range of properties here offer good potential returns on investment.
Town centre and inner suburbs
Areas like Hexthorpe, Hyde Park, around Thorne Road and Wheatley Hall Road are famous for their relative affordability and strong rental yields for buy-to-let investors.
North East Doncaster
Suburbs like Intake, Wheatley, Wheatley Park and Wheatley Hills provide reasonable access to the town centre while offering lower-priced properties. Venture further to Armthorpe, Edenthorpe, Kirk Sandall, Barnby Dun and Hatfield for local amenities and easy M18 access.
North West Doncaster
Neighbourhoods such as Bentley, Scawsby, Cusworth, Scawthorpe, Highfields, Woodlands, Carcroft, Skellow, and Adwick le Street are reasonably priced commuter-friendly options.
South Doncaster
South Doncaster encompasses desirable residential neighbourhoods like Balby, Cantley and the highly sought-after Bessacarr—ideal for professionals and families. Edlington, Rossington, Tickhill and Bawtry are other southside locations, with the latter being upscale village options.
Sprotbrough
A few miles from Doncaster town centre, the small village of Sprotbrough offers a safe, family-friendly environment surrounded by beautiful countryside scenery.
Bessacarr
One of Doncaster’s premier suburbs, Bessacarr provides a range of housing from modern flats to traditional homes alongside ample green spaces, good schools and a thriving community feel.
Tickhill
For a peaceful village living experience, the rural hamlet of Tickhill charms with its cosy atmosphere, abundance of green spaces and quality local amenities.
Are house prices rising in Doncaster?
As you’d expect with any area seen as up-and-coming, house prices in Doncaster seem to be on an upward trajectory. Again, the past 12 months saw prices rise by around 6%. This sounds even more impressive when you factor in nationwide house values, which saw a more modest increase of around 1.9%.
Several factors support continued price rises in Doncaster. Employment levels across sectors like logistics and manufacturing are ticking upwards, bolstering buyer demand as disposable income slowly creeps up. Additionally, Doncaster’s affordability relative to other significant cities drives interest from purchasers being priced out elsewhere.
Does that mean prices won’t fall again?
Nothing is given in the UK property market, and house prices are driven by demand. Inflation decreased significantly, from 11.2% in October 2022 to 3.2% in February 2024.
Mortgage rates are still higher than many would like, with the Bank of England base rate currently at 5.25%. Despite this, the consistent increase in property prices over the past year, rather than a decline, indicates a positive trajectory in the housing market concerning property values.
Is Doncaster an excellent place to own an investment property?
The signs point to Doncaster being an increasingly appealing option for buy-to-let investors seeking strong rental returns and capital growth potential. Several factors make it enticing from an investment perspective.
Let’s start with yields. Doncaster’s average rental values are £605 per month, according to the latest market data from the Office of National Statistics (ONS). The average purchase price sitting at £215,630 translates into a gross rental yield of around 3.37%. But it’s not uncommon for yields to stretch beyond 6% in popular rental hotspots like Town Fields and Intake.
Returns become even more attractive when you account for Doncaster’s low entry prices compared to other major cities and regions. Investors can affordably acquire buy-to-let properties, making the most of their potential profits.
Is there high tenant demand in Doncaster?
Doncaster also benefits from a constant pipeline of rental demand from different tenant demographics. Its logistics and manufacturing hubs attract working professionals to the area. The town’s University Campus Doncaster often leads to a steady influx of students annually. Affordable family homes appeal to anyone priced out of nearby cities, too.
Such diverse demand is compounded by Doncaster’s revitalisation tailwinds, improving its overall desirability. Regeneration projects like the Urban Centre Masterplan, new cultural amenities, green space enhancements and waterfront developments should make the area increasingly attractive for renters and, thus, investors.
For buy-to-let investors able to capitalise on Doncaster’s affordability, 2024 could certainly shape up as an opportune time to add this up-and-coming area to their portfolio.
Buying a property in Doncaster
Doncaster presents an attractive proposition for both homebuyers and investors in 2024. With affordable prices, strong rental demand, regeneration initiatives, and forecasted price growth, getting a foothold in the city’s property market could prove a smart move for your portfolio or housing aspirations.
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