Huddersfield Buy-to-Let Guide

According to Rightmove, the average Huddersfield property price in 2023 was £199,121. This is similar to the 2022 figures and 10% higher in 2020. The UK House Price Index shows that the average UK property is worth £287,782, which makes the cost of a buy-to-let in Huddersfield significantly cheaper than the national average. This is good news for Huddersfield buy-to-let investors, who should be able to find a good deal on property in the area.

The slow growth that the town has experienced can be observed across the UK property market, but it’s important to look at long-term trends rather than inevitable ebbs and flows that occur in the short term. Huddersfield property has displayed impressive growth in the past, and the Yorkshire and the Humber region as a whole are forecasted to return to healthy capital growth in the next few years. Property expert Savills predicts the mainstream capital value of this region will grow 20.2% by 2028.

Earlier this year, demand for flats in Huddersfield increased the fastest in the UK, as reported by Zoopla. According to Yorkshire Live, this jump in demand can be attributed to homebuyers looking at cheaper towns as opposed to cities, and Huddersfield’s affordable property prices have made it a destination of choice.

Learn More: Interested in off-plan property in 2024 or the latest BTL stamp duty rates? Check out our 2024 investment guides for the updated figures!

The Huddersfield Town Centre offers some good value property and is popular with students and those who want to be close to the amenities of central Huddersfield. Surrounding suburbs such as Marsh, Paddock, and Milnsbridge can offer even cheaper property than the town centre on average.

Areas like Moldgreen are popular with students thanks to affordability and proximity to the university campus.

Residential areas like Lindley are a bit further out and are desirable places to live, although the property is usually pricier.

There are also more rural villages and towns, such as Holmfirth and Brighouse. Some of these areas further out from Huddersfield are popular with commuters, such as Slaithwaite and Marsden, as they have train stations with convenient services to Huddersfield, Leeds, and Manchester and good local amenities.

Huddersfield Town Centre (HD1)

Average Property Prices in HD1

The average property price in this area is £147,667.

Average Rental Yield in HD1

The average rental yield in this area is 5.43%.

Average Property Prices in Moldgreen

The average property price in this area is £168,560.

Average Rental Yield in Moldgreen

The average rental yield in this area is 4.84%.

(Average property prices were taken from Rightmove in late 2023, and gross rental yield estimates were calculated with figures from housesforsaletorent.co.uk in late 2023)

What is the Best Area of Huddersfield to Invest In?

Property in popular commuter towns like Marsden may be more expensive than central Huddersfield, but a decent rental yield can still be achieved if the area is chosen wisely. Other villages on the outskirts, like Holmfirth, are too pricey to offer a good yield.

Lindley property is highly sought-after, so investors may be interested in the area, but if you’re looking for a high rental yield, Lindley may be disappointing.

Overall, the Huddersfield Town Centre, as covered by the HD1 postcode, is a hotspot of cheap property and high rental yields. Some suburbs within HD1, such as Paddock, seem to offer an even better deal.

We have identified Milnsbridge as an area of Huddersfield with a particularly high rental yield and an average property price much lower than the Huddersfield average.

More Information: Stay up-to-date with the UK property market! Take a look at our UK interest rates chart for the latest developments

The Huddersfield Blueprint aims to deliver a variety of new homes to transform the area into a “great place to live.” If this scheme successfully boosts the area’s appeal and increases tenant demand, Huddersfield may become more popular among private developers as a new-build location.

New-build properties have recently seen increased interest from landlords due to the imbalance between supply and demand for UK housing. For landlords, there are fewer upkeep/lower maintenance fees since the building is freshly built. For tenants, as new-builds are typically outfitted with trending amenities and appliances, new-builds are often more appealing compared to standard, older residential properties.

Student accommodation is one of the most popular forms of new-build investment. Investors interested in this strategy may find some options in Huddersfield, but it could also be worthwhile to look at cities with a larger student population, such as Liverpool and Manchester, and new-builds in Bath.

For those searching for investment opportunities in Yorkshire, it may also be worth widening the search to other major towns.

Huddersfield can offer some great benefits to property investors, but how does it stack up to other areas?

Huddersfield is home to some affordable properties, cheaper than the UK average and much cheaper than a property investment in London. But Huddersfield isn’t alone in offering more affordable property than the UK average, as this is true of many major northern towns and cities. For example, according to the UK House Price Index, the average Liverpool property is cheaper than those in Kirklees.

According to Savills, the capital growth forecast for Yorkshire and the Humber is also the same for other northern regions such as the North West and Scotland. All three regions are predicted to grow 20.2% by 2028.

It seems that many northern cities can offer comparable advantages to Huddersfield, and many investors will opt for more major cities, like Liverpool and Manchester buy-to-let, that appeal more to tenants and have more guaranteed demand.  Why not read more about investing in student accommodation with our additional property guide.

Further Reading: Delve deeper into the North West rental market with our guide to buy-to-let property in Bootle or take a look at some of the available new builds in Manchester!