Dewsbury Buy-to-Let Guide

According to Rightmove, the average price of a property sold in Dewsbury over the last year was £168,430. This is more than £100,000 cheaper than the average UK house price of £284,691, per the UK House Price Index. This shows that Dewsbury is an affordable area when it comes to property.

This average price is 6% down on last year and 2% compared to the 2021 peak. This subdued performance was characteristic of the previous year, as 2023 was challenging for the UK property market. But is this disappointing growth in Dewsbury going to continue?

Savills predicts that the UK property market is set to return to growth from 2025, and healthy growth will kick back in from 2026. Yorkshire and the Humber, where Dewsbury is located, is forecast to experience 20.2% capital value growth by 2028. This is one of the most optimistic figures of all regions and higher than the projected UK average of 17.9%.

Further Reading: Learn more about investing with our safe investments guide and our dedicated serviced accommodation guide for more insights.

Dewsbury is a historic town, so many of the properties on offer are period houses, especially Victorian terraces and mid-20th century housing. Some areas also have modern properties and recent new builds. A key selling point of many Dewsbury properties is the views of the West Yorkshire hills.

So, what is the most popular type of Dewsbury property among sellers?

According to Rightmove, most sales in Dewsbury over the past year were terraced properties, and they sold for an average price of £136,588. Semi-detached properties went for an average of £181,135, with detached properties going for £282,667.

Average Property Prices in Chickenley

The average property price in this area is £157,536.

Average Rental Yield in Chickenley

The average rental yield in this area is 5.37%.

Average Property Prices in Thornhill Lees

The average property price in this area is £157,708.

Average Rental Yield in Thornhill Lees

The average rental yield in this area is 5.01%.

(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 Dewsbury to Invest in?

Looking at this selection of Dewsbury districts and suburbs, it’s clear that some areas can offer very reasonable property prices and high rental yields.

However, it’s worth noting that areas such as Dewsbury Moor and Chickenley have been classed among the 10% most deprived areas in the UK, and it is worth researching these areas before deciding on a property investment in these suburbs.

Location and Transport Links

Dewsbury’s strategic location has significantly contributed to its growth, as it is comfortably nestled between several major urban centres. Leeds and Bradford lie 8 miles to the north, Huddersfield is a similar distance away southwest of the town, and Wakefield is 6 miles east. Dewsbury’s proximity to the M1 and M62 motorways and convenient position on the Huddersfield Line served by the TransPennine Express are also appealing points.

Dewsbury’s proximity to other major towns and cities makes it an attractive commuter town to draw professional renters.

Regeneration

Dewsbury is amid an ambitious regeneration programme dubbed the ‘Dewsbury Blueprint’. The 10-year plan will pour investment into Dewsbury Town Centre and develop the area as a strategic employment location within the Leeds City Region. The scheme will also build on the town’s transport links and increase “housing and leisure provision with a consolidated retail and commercial core”.

Regeneration is a reliable indicator of future growth in an area, including property prices, rental demand, and rental inflation. This makes it a key factor to look out for as a property investor.

New build developments are becoming increasingly popular as buy-to-let investments as they are in demand from both investors and tenants. However, typically, newly-built properties will be more expensive than older housing. For this reason, off-plan investment is gaining attention as an investment strategy. By investing in developments during the planning or construction stages, investors can acquire a newly built property at a discounted price.

As mentioned, new build investment opportunities are quite limited in Dewsbury, which means there are fewer chances to invest off-plan. Off-plan investment opportunities are usually concentrated in major cities and urban centres with high rental demand and a promising outlook for capital growth in the future.

For example, new builds in Manchester often have off-plan investment options and are cheaper than in many other regions.