Oldham Buy-to-Let Guide

According to Rightmove, properties sold in Oldham over the past year had an average price of £189,932. This is much cheaper than the UK average which is £284,691 as per the UK House Price Index, so it’s fair to say that Oldham is an affordable area when it comes to property. Notably, those looking to buy property in Manchester will find an average price of £242,523, making the town a cheaper alternative to central Manchester.

Oldham’s average property price is 3% down on the previous year and 2% up when compared to 2021. This is characteristic of the UK property market in general during 2023, when growth was subdued, and modest price dips were observed in some areas.

But is this sluggish growth projected to continue? Most forecasts are predicting a return to healthy growth for the UK property market. In particular, the North West is set for growth of 29.4% leading up to 2029 according to Savills, which is higher than the UK average of 23.4%. This is promising news for Oldham property investors.

There are various types of investment properties on offer in Oldham, including terraced houses, Victorian period houses, townhouses, and bungalows. There’s also cottages in the more rural areas surrounding the town. For investors looking for more stylish and modern buy-to-let houses for sale, there are some newly built properties available in Oldham, and as Greater Manchester towns such as Oldham gain more popularity as residential areas, they may be targeted more by developers for new build projects.

According to Rightmove, the majority of sales in Oldham during the last year were terraced properties, and they sold for an average of £151,165. The next most popular were semi-detached properties for an average of £214,740, and detached properties with an average sold price of £332,350.

Average Property Prices in Royton

The average property price in this area is £206,857.

Average Rental Yield in Royton

The average rental yield in this area is 4.66%.

Average Property Prices in Shaw

The average property price in this area is £199,738.

Average Rental Yield in Shaw

The average rental yield in this area is 4.44%.

(Average property prices taken were from Rightmove in early 2024; rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Oldham to Invest in?

Property prices are low across the Oldham borough, with more sought-after villages on the outskirts typically a bit pricier on average than central Oldham.

Central Oldham areas seem to have the most suitable combination of affordable property, high rental yields, and high demand, making them the best option for a buy-to-let investor.

Affordable Property

One of the most important considerations when searching for the best buy-to-let location is whether or not the area has affordable property. This means that the initial financial burden of the investment will be lighter, and the investor will start seeing returns quicker.

Oldham’s average property price is lower than the UK average, making it an attractive prospect for buy-to-let investors.

Areas with cheaper property will often have higher rental yields; however, there are other regions with much higher rental yields than Oldham that are worth exploring as options.

Regeneration

Regeneration is a key indicator of future demand for an area and capital growth, so it’s worth taking notice of planned schemes for towns and cities of interest. Oldham has several regeneration projects in the pipeline, with many concentrating on Oldham’s town centre. The ‘Creating a Better Place’ project aims to create more than 2000 new homes, 1000 new jobs, and 100 apprenticeships in the town centre – unlocking an investment of £285 million and making this popular for property investors.

Location and Transport Links

Residents of Oldham benefit from proximity to central Manchester and excellent transport links. There are two nearby train stations, Mills Hill and Moston, with frequent trains to Manchester Victoria and good connections to other cities such as Liverpool and Leeds. Oldham is also part of Manchester’s tram network and is well-served by the bus network.

The area is also well located for the A62 and M60 and boasts easy connections to Manchester Airport.

Convenient towns like Oldham are bound to enjoy popularity with commuters, adding to rental demand and making it one of the best areas to buy in Manchester.

Off-plan property investment is becoming increasingly popular as a strategy for acquiring a newly built property at a discounted price. However, off-plan opportunities are still typically concentrated in major cities, meaning chances to invest in off-plan projects in Oldham may be quite limited. The bulk of off-plan property options for 2024 in Greater Manchester will be located in Manchester City Centre and Salford, where demand is more guaranteed from young professionals.

This may change in the future as Greater Manchester’s reputation as a buy-to-let hotspot grows and further out areas experience increasing demand attracting more private developers. Learn more about property investment with our how to get into real estate guide book.