Halifax Buy-to-Let Guide

According to Rightmove, the average price of a property sold in Halifax over the last year was £178,073.

This is more affordable than the average for the whole of the UK, which is £284,691, as stated by the UK House Price Index.

Sold prices in Halifax over the last year were at the same level compared to last year and 2% higher than in 2021. It is no surprise that Halifax has become popular with Property Investors from around the UK in recent years.

So, prices seem to be at a steady level, but is this set to continue?

According to Savills, capital values in the Yorkshire and Humber region are projected to rise by 28.2% over the next five years until 2029, marking one of the highest forecasts in the UK.

Learn More: Discover the buy-to-let costs and how to start a property portfolio with our updated investment insights!

Investors exploring the market in Halifax will find a mix of residential and commercial properties, from quaint period homes to modern commercial spaces.

According to Rightmove, terraced properties dominated the sales market in Halifax over the past year, with an average selling price of £135,984. Semi-detached properties saw an average price of £198,779, while detached properties achieved an average price of £381,397.

Typical property types in Halifax span a range of styles, from traditional stone-built terraces to flats in mid-rise blocks, suburban housing estates, and expansive period properties dating back to the Victorian era.

While the inner areas of Halifax are characterised by a dense urban population, the outer districts extend into the Yorkshire moors and valleys, offering a more rural environment.

As the town undergoes revitalisation and development projects, the potential for capital appreciation and robust rental yields becomes increasingly promising.

For those seeking a blend of historical charm and contemporary investment potential, Halifax’s offerings in the real estate market present a compelling investment opportunity.

Find Out More: Want to know what to do with £100k? Our extensive property guides outline UK property investment for beginners and how to make money on property!

Average Property Prices in Savile Park

The average property price in this area is £239,530.

Average Rental Yield in the Savile Park

The average rental yield in this area is 2.98%.

Average Property Prices in Illingworth

The average property price in this area is £163,552.

Average Rental Yield in the Illingworth

The average rental yield in this area is 4.84%.

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

What is the Best Area of Halifax to Invest in?

Compared to the overall average buy-to-let property for sale in the UK, properties in Halifax vary in affordability.

Areas like Halifax Town Centre have an average price well below the national figures, producing a respectable yield of around 6%. Calderdale College is also located in the HX1 postcode, which could provide access to the young professional/student property demographic.

However, properties in Skircoat Green and Savile Park typically fetch a much higher price, leading to a low gross rental yield.

A buy-to-let property within the town centre would be most advantageous, and with thorough research, it may be possible to see some return on investment.

Robust Economic Landscape

Halifax has a rich industrial heritage, once renowned for its prominence in wool processing, manufacturing, and, notably, carpet making. However, today, the town’s economic landscape has evolved significantly. The primary industries in Halifax now encompass light manufacturing, advanced manufacturing, services, public services, technology, creative industries, and financial services.

Notably, Halifax holds historical significance as the birthplace of the Halifax Building Society, which has since transformed into the Halifax Bank. The financial services sector remains a key employer in the region, with thousands of individuals employed in corporate offices located at Trinity Road in the town centre and the LBG computer data centre situated at Copley.

Additionally, Calderdale Royal Hospital (CRH) plays a pivotal role as a significant employer in Halifax. The Calderdale and Huddersfield NHS Foundation Trust, which oversees CRH, employs approximately 6,000 individuals, further contributing to the town’s diverse employment landscape.

Regeneration

Working in conjunction with Calderdale Council, the Halifax Development Board has instigated various regeneration projects to promote and support local infrastructure.

Ambitious plans are currently ongoing or in the pipeline. Utilising The Government’s Future High Streets Fund, Halifax Borough Market is undergoing extensive renovation to drive growth and ensure future sustainability.

Residents and business owners can enjoy the benefits of regeneration. Property investors can also capitalise on these schemes by researching which up-and-coming areas will benefit most from a resurgence in the coming years.

Investing earlier while the property prices are lower will result in increased demand, higher rental income, and substantial capital appreciation when the time comes to sell up.

While there are many advantages to investing in newly constructed properties, they often come at a higher cost compared to older residential properties.

Off-plan property investment allows investors to access new-builds at a more affordable price point. Investors who opt for off-plan commit to a property before its completion, typically securing it at a discounted rate to standard market prices.

Early engagement can lead to significant capital appreciation with a lower initial investment, as the value naturally rises nearing the completion of the off-plan property.

Like most new-build investments, particularly in high-demand locations, off-plan properties demonstrate strong rental demand, potentially offering solid long-term yields.

As with standard new-build developments, while some off-plan properties are available in Halifax, investors might want to explore UK regions with a higher concentration of new developments – such as the North West.