Coventry Buy-to-Let Guide

According to Zoopla, the average price for houses sold in the last 12 months stood at £239,110.

In comparison, the UK average price for the same period is £261,500. As such, property in Coventry is 8.6% cheaper than the UK average property price.

Rightmove’s analysis of the market shows that most sold properties were terraced houses. In addition, Rightmove also states that Coventry’s sold prices were 5% higher than the previous year.

There’s diverse property types in Coventry that are suitable for investment. Most properties in Coventry are modern, but some areas have Victorian and Edwardian houses. There’s also purpose built student accommodation and other types of student housing. Luxury apartments can be found in the city centre due to the large young professional population, and semi-detached and detached housing is commonly found in the suburbs which are sought after by commuter families.

Prices can vary significantly depending on the property type. According to Rightmove, the most popular type of Coventry property sold during the last year was terraced houses, selling for an average price of £209,223. Semi-detached properties sold for an average of £262,756, and detached properties had an average price of £425,169.

The CV2, CV5, CV6 and CV7 northern suburbs include areas such as Aldermans Green, Foleshill, Hawkesbury, Holbrooks, Keresley, Longford, Neal’s Green and Radford. These areas feature good transport links to the city centre and the M6 motorway. In addition, the Coventry Arena train station offers reliable journeys into the centre and Nuneaton.

If you look further North, the town of Bedworth – part of the Nuneaton and Bedworth area – is a popular residential locale with a train station. You can reach Coventry in roughly 15 minutes.

The area is spread across the CV2, CV5, CV6 and CV7 postcodes, where yields are between 4.6% and 5.9%.

Average Property Prices in Coventry Northern Suburbs

In the past year, the average price for properties in CV2 stood at £209,310.

Terraced properties dominated sales, achieving an average selling price of £205,667. Semi-detached properties secured a higher average of £233,814, while flats garnered an average of £117,417.

In a broader context, the sold property prices in CV2 witnessed a notable increase of 5% compared to the preceding year. Moreover, they exhibited a substantial 17% surge from the 2020 peak of £178,826.

Properties within CV5 commanded an average price of £272,535, while terraced properties in this area achieved an average selling price of approximately £243,348. Semi-detached properties earned a higher average of £318,659 in sales, while flats secured an average of £146,298.

The sold property prices within CV5 experienced a notable uptick of 4% compared to the previous year. Furthermore, they exhibited a significant 13% rise from the 2020 peak of £241,159.

In CV6, properties achieved a collective average price of £207,774. Terraced properties attained an average selling price of £198,016. Semi-detached properties achieved a higher average of £222,479, while flats garnered an average of £128,181. The postcode saw a noticeable increase of 6% compared to the preceding year. Moreover, they showcased a substantial 14% rise from the 2020 peak of £182,844.

Meanwhile, CV7 commanded an average price of £368,251 on the whole. Detached properties were the predominant choice for buyers in CV7 during the preceding year, achieving an average selling price of approximately £576,899. Semi-detached properties secured an average of £292,705, while terraced properties garnered an average of £224,945.

CV7 experienced a noticeable 6% increase compared to the preceding year. Furthermore, they showcased a significant 10% rise from the 2020 peak of £333,798.

Note: All figures were found on Rightmove.

Average Rental Yields in Coventry Northern Suburbs

In the northern suburbs, rental yields ranged from 4.6% in CV5 to 5.9% in CV6.

The southern districts of Coventry include the spacious suburbs of Stivichall or Styvechale, as well as Willenhall, along with the distinct villages of Baginton and Ryton-on-Dunsmore. These regions boast convenient transport links via the A45 and A46, allowing easy access to destinations like Rugby, Kenilworth, Royal Leamington Spa, and Warwick. As a result, they are particularly favoured by Coventry residents commuting to these neighbouring areas.

Moving further south within Coventry and extending into the Warwick district, you can find some of the region’s most prestigious residential neighbourhoods, where properties become much more expensive.

Average Property Prices in Coventry Southern Suburbs

As we have previously mentioned, Rightmove puts the average property prices for CV3 at £274,218, though you can expect to pay more in the more affluent neighbourhoods.

Average Rental Yields in Coventry Southern Suburbs

Again, the average rental yields for the CV3 postcode stand at 4.6% for the last year.

Coventry has many features and facilities that enhance the city’s buy-to-let potential. These include:

Excellent Transport Links

Coventry’s proximity to major roadways, including the M6, M6 Toll, M69, M45, M42, A45, and A46, facilitates travel to other parts of the country. The region offers a well-connected rail network with regular services to various destinations such as Birmingham, London, and more. Notably, Coventry’s railway station is undergoing expansion, and an innovative Very Light Rail (VLR) tram system is in the planning stages, potentially revolutionising local transportation.

With Birmingham Airport in close proximity and the forthcoming HS2 high-speed railway network featuring a station at Birmingham Interchange, a short distance from Coventry, the city’s accessibility is set to become an even greater appeal to prospective tenants.

Coventry is also a preferred choice for Birmingham commuters, boasting a frequent train service with up to seven trains departing hourly, allowing for a swift 20-minute commute, making it an ideal option for those working in Birmingham but open to living further afield.

Coventry stands as a prominent hub for higher education, boasting an impressive student population of approximately 54,000. In addition to being home to Coventry University, the esteemed University of Warwick is also situated within the city. Evidencing the substantial demand for student accommodations in Coventry, a plethora of modern student residences have been erected in recent times.

Desirable locations for Coventry University and the University of Warwick student accommodations encompass various areas, including the city centre, Earlsdon, Stoke, Canley, Barras Heath, and Stivichall. Furthermore, students from the University of Warwick often seek housing options in Leamington Spa, a distinct town located to the south of Coventry.

As new build property gains more popularity as an investment strategy, off-plan investment is also becoming more common. By investing off-plan, an investor can acquire a new build property at a lower price. As new build properties are highly in demand, but also pricier than older properties, more and more investors are considering this option.

At the moment, off-plan options are quite limited in Coventry. It may also be worth looking at other Midlands cities and towns for opportunities, such as off-plan property in Lincoln.

However, the best way to find a range of off-plan investment opportunities is to target the UK’s most major cities such as London and Manchester.

As mentioned, Coventry has an average house price of 8.6% cheaper than the national average. However, when compared to bigger cities such as Liverpool, Manchester and Birmingham, Coventry begins to pale in comparison. All three cities boast a cheaper average house price valuation, while a typical buy to let in Liverpool also has a larger rental yield at 7.76%, as per Home and the UK House Price Index. In addition, Liverpool and Manchester also have fantastic business opportunities compared to their Warwickshire counterpart.

Incorporating tenant contentment into their buy-to-let investment approach could be a wise consideration for landlords. Cities such as Liverpool and Manchester provide exceptional amenities and recreational opportunities, and the North West region presents a robust Savills growth projection of 11.70%, notably surpassing the 8.90% prediction for the West Midlands.

So don’t go rushing to check out those buy-to-let mortgage rates in Coventry just yet, without exploring some alternative locations first.  We also recommend learning more about the types of Buy to let costs that are likely to be incurred.