Stoke is rarely marketed as one of the most glamorous cities in the United Kingdom, but just because a city doesn’t make headlines all the time does not mean it should be dismissed as a place to live, work, rent or invest in.
Stoke is one of the hidden gems of the rental market and today is recognised as one of the top buy-to-let hotspots in the country.
Boasting low property prices and high demand for rentals, Stoke can offer a generous return on investment for landlords willing to purchase a property here, which is why investors and cash home buying services like here at We Buy Any Home are always on the lookout for anyone looking to sell a tenanted property in Stoke and the surrounding areas.
Demand for Rental Properties in Stoke-on-Trent
Stoke-on-Trent is going through a huge period of revitalisation. While it was once regarded as a rather run-of-the-mill city, the local council have given the go-ahead to a wealth of projects that are sure to make for a booming rental market. This includes attracting more businesses, building new attractions and better funding for education.
One of the reasons why Stoke has not always been highly regarded historically is because the wages here are somewhat lower than the rest of the UK. However, this does work to a property investor’s advantage, since low wages often mean that residents can’t afford to own properties themselves and thus a thriving rental market is often found. This has helped to keep demand for rental properties high in Stoke, even amid economic stagnation across the country as a whole.
Now is a great time to invest in Stoke property. Stoke offers good opportunities to rent properties and then sell on for profit later.
Current Stoke-on-Trent Rental Yields
Stoke-on-Trent is one of the best buy-to-let markets in the UK based on rental returns. The average rental yields here in 2023 were 6.63%, which is considerably higher than the UK average.
Stoke has some of the most affordable property prices too, so people can benefit from these high rental yields without getting a huge amount of cash tied up in the market. Although, newer investors may wish to do a bit of research into the buy-to-let market in Stoke to ensure that they are placing their cash in the right areas, as some areas are more suited to buy-to-let investors than others, and demand for rental properties is higher in some areas.
Current Average Rental Prices in Stoke-on-Trent
As of March 2024, landlords in Stoke would expect to receive the following for different types of properties:
- One Bedroom: £632 per month
- Two Bedrooms: £741 per month
- Three Bedrooms: £920 per month
- Four Bedrooms: £1,144 per month
- Five Bedrooms: £1645 per month
Broken down by property type, you could expect the following:
- Room: £580 per month
- Flat: £782 per month
- House: £971 per month
The bulk of the local rental market is centred on 2-3 bedroom houses, with larger properties potentially offering greater returns, as very few of them go on the market so demand is usually high and competitive.
As Staffordshire University has a campus in Stoke-on-Trent, a lot of the single-room rentals are aimed at students, which does offer a steady income for buy-to-let owners, assuming they have purchased a property in the right locations i.e. close to the university campus. These properties can often deliver higher rental yields when there are multiple people located in the property, although they can be tougher to manage for some of the newer landlords.
Being a landlord in Stoke-on-Trent or elsewhere is not as easy as many people make it out to be, so it’s important you understand your legal obligations if you are thinking of investing.
Buy-to-Let Areas in Stoke-on-Trent
There are a lot of places in Stoke-on-Trent where you could invest, but picking the right area is key. Like any city, some areas should be avoided, as sometimes even choosing a particular road can have a huge impact on the viability of your investment if it is in an undesirable area or if students do not want to live here for example.
Here are some areas to take a look at if you are thinking of investing in the city.
Birches Head
Birches Head is a great place for families, with a good school in the local area and is relatively safe too. In recent years, a lot of investment has been poured into the housing of Birches Head, with many newly built flats cropping up. Birches Head is easily accessible from the city centre, making it a desirable place for those investing in family homes, or those aimed at those working within the city (normally professionals).
Norton Heights
Norton Heights is a little bit more ‘upscale’ than Birches Head, with the majority of homes here being larger family units. With average detached property prices in excess of £256,000, it does take a bit more cash to enter this market than elsewhere in Stoke-on-Trent, but with a growing demand for larger property rentals in the area, it may offer sizeable yields in the future.
Sneyd Green
Sneyd Green is primarily a council estate, which means affordable housing. The area is a bit more ‘rundown’ than some of the other top Stoke-on-Trent buy-to-let areas, but it does get some investment from the local council which has helped to push property prices up a little bit. This may be one of the better places to purchase a property if your plan is to get involved with flat rental, as there are fewer houses here than in some of the other areas of Stoke.
Burslem
Burslem is an area of Stoke that has always been in demand, even as the manufacturing in the area started to die out. Nowadays, Burslem is a mix of old properties (mostly Victorian), with some newer housing developments happening every so often too, which provides ample investment opportunity.
Tunstall
Tunstall feels like a small village and sits on the northern point of Stoke-on-Trent. Most buy-to-let owners don’t struggle to rent their properties out here, since the people that live in Tunstall love how they can get everything on their doorstep.
Hanley
Hanely is the city centre for Stoke, so some of the streets can be a bit hit-and-miss (as they would be in most places in the UK), but some of the properties can also command top rentals owing to their proximity to the centre of the city and may be worth researching for buy-to-let investors.
Struggling to Find Renters & Hoping to Sell Your Tenanted Property? We Can Help
Have a property in Stoke that you are struggling to rent out and you are looking to sell a tenanted property to reinvest elsewhere? We Buy Any Home can help. If you’ve got a property to sell and want to do so on your own timetable rather than waiting for traditional agents, reach out to us. We will give you a free cash offer within minutes and as we operate throughout the UK, we have local Stoke knowledge and understand the local market. You could receive your money in as little as 7 days so call today.
