Northampton Buy-to-Let Guide

For those investing in real estate in the UK, securing a good-value property in the right area is typically one of the highest priorities.

Northampton property prices are remarkably similar to the national average. According to the HM Land Registry UK House Price Index, this Northamptonshire town has an average property price of £289,824. The national average UK property value is £287,546. There is less than a 0.8% difference between those two figures.

The same database indicates that property prices in Northampton are virtually the same in July 2023 as they were in 2022. However, the local property market has fluctuated during that period. For instance, property prices rose to £292,187 on average in November 2022 before falling back to where they are now.

Rightmove states that the most popular rental properties for sale in Northampton are terraced houses.

Discover the latest facts and figures surrounding UK property with RWinvest! Our updated look into UK property investment for beginners details the most recent trends and strategies to consider when entering the market, as well as new buy-to-let rules.

Within the Northampton rental market, various property types are available, including detached and semi-detached houses, as well as terraced properties. As mentioned, property prices here are similar to the UK average, meaning investors could potentially find greater affordability elsewhere.

According to Rightmove, properties in Northampton had an average price of £277,909. Most sales during the last year were terraced properties, selling for an average price of £233,109. Semi-detached properties sold for an average of £269,157, while detached properties fetched £426,772.

Overall, sold prices in Northampton over the last year were 4% lower than the previous year and remained similar to the 2021 peak of £275,966.

North Northampton areas include:

• Kingsthorpe
• Boughton
• Semilong
• Queens Park

These districts offer easy access to the town centre and places like Moulton Park in the East and Lodge Farm Industrial Estate – two significant employers in the area.

Average Property Prices in North Northampton

Average property prices in NN2 are £274,199.

Average Rental Yields in North Northampton

Investors can expect yields of around 4.2% in this area.

South and West Northampton include some of the most sought-after residential areas in the town. Many newly built residential estates and business parks (such as the Brackmills Industrial Estate) are in this part of town. In addition, this side of Northampton offers good access to the M1 If you need to get to Milton Keynes, Daventry or London

Districts in these parts of town include:

• Delapre
• Far Cotton
• Wootton
• Hardinstone
• Dallington
• Duston
• New Duston
• Hunsbury
• West Hunsbury
• Upton
• Hopping Hill

Average Property Prices in South and West Northampton

Property prices in NN4 are £335,592. This makes South Northampton one of the most expensive parts of the town.

NN5 property prices are £274,468 on average.

Average Rental Yields in South and West Northampton

Rental properties in NN4 will offer yields of around 3.6%.

NN5 offers yields of 5.8%, some of the best in the area.

Newly built properties are steadily gaining popularity as a top investment choice amid the current supply/demand imbalance within the UK housing sector.

These developments demand minimal upkeep or repair, offering properties that are essentially move-in ready for tenants at any given moment. Such convenience not only ensures a hassle-free experience for occupants but also guarantees a faster turnaround for landlords to start earning rental rentals.

There are various ongoing new housing schemes in the Northampton area. For example, Upton Place is a recent development designed to attract first-time buyers, couples, and growing families. Offering a range of two, three, four, and five-bedroom homes, all situated just three miles from Northampton’s town centre and within an hour’s train journey from London, the developers anticipate it will help alleviate the housing shortage and stimulate the local rental market.

With this growing market trend in mind, choosing new-build properties could prove advantageous for investors in the years ahead.

While Northampton presents various new-build investment opportunities, larger urban cities like Liverpool and Manchester may offer broader investment prospects and potentially higher capital appreciation.

Further Reading: Discover more with our recent buy-to-let guides, covering everything from new-builds in Winchester to the latest UK hotspots!

So, is Northampton one of the best areas for buy-to-let?

While Northampton is cheaper than a lot of cities around it, investors may want to look towards the north of England to find the best investment opportunities.

For example,  the typical average house price for property investments for sale in Liverpool is £177,628. This makes them 48% cheaper than Northampton. In addition, Liverpool’s rental yield is also superior at 7.70%.

Furthermore, the East Midlands capital growth may be healthy, but the North West offers the best capital growth prediction in the UK. That region is predicted to enjoy 29.4% capital growth by 2029.

So, if you want to invest in property, we recommend venturing further north for better prices, yields and projections.

Delve deeper into the buy-to-let market with our guide to buy-to-let property in Warrington.