Middlesbrough Buy-to-Let 2024 Guide

As previously mentioned, Middlesbrough property values are low.

The latest figures in the UK House Price Index show Middlesbrough’s average house price is £139,501. Properties in the area have seen a price decline of 1.30% year-on-year.

If we delve deeper, detached properties cost £249,995 on average. Semi-detached homes cost £140,954. On average, terraced houses and flats cost £98,974 and £74,529.

In comparison, the national average house price is £291,044, making Middlesbrough a substantially cheaper property investment opportunity – the North East city is around 70% less expensive than the rest of the country.

According to Rightmove, the most popular house type in Middlesbrough is semi-detached. Rightmove also states that sold prices were down by 7% annually but still up by 1% on the 2020 peak.

Middlesbrough has numerous places in which buy-to-let investors can potentially enjoy good capital growth.

Please note: Middlesbrough house prices in this section come from Rightmove. Rental yields calculated from figures on housesforsaletorent.co.uk

TS1

Middlesbrough’s TS1 postcode covers the town centre. Here, you’ll find all the typical amenities and city centre dwellings, such as terraced properties, converted flats, and apartments.

The TS1 postcode commands strong rental yields and good-value properties. However, the area has substantial levels of deprivation and is not a desirable place to live compared to some other parts of the UK with good value properties.

Average Property Price in TS1

The average property price in TS1 is a low £72,044.

Average Rental Yield in TS1

The average rental yield in this area is 9.5%.

TS7 is one of the more expensive places to buy property in Middlesbrough. However, prices are still much lower than the national average. Outer suburbs like Marton, Nunthorpe and Ormesby offer good living for families, young professionals and retirees. The areas have amenities and schools. The crime rate is lower here than in other parts of Middlesbrough.

Nunthorpe was voted the best place to live in Middlesbrough in a 2023 poll.

Average Property Price in TS7

The average property price in TS7 is £230,117.

Average Rental Yield in TS7

The rental yield in this part of town is 3.39% on average.

There’s a supply-demand imbalance across the UK regarding available rental properties, driving demand for new-build properties.

New-build property investment has grown in popularity in recent years due to tenant demand, better energy efficiency, and lower maintenance costs than older properties.

Some new builds are being built in Middlesbrough as part of the Middlesbrough Council’s Housing Local Plan. If all goes to plan, these areas may be more attractive to private developers and encourage more new build investment opportunities.

Sure, Middlesbrough offers cheap properties and good rental yields, but the area’s crime rate will affect any buy-to-let satisfaction. Many landlords fail to factor in tenant satisfaction or – more importantly – tenant reliability.

Middlesbrough has the highest crime rate in North Yorkshire. In 2022, there were 187 crimes per 1000 people. A bad reputation will not attract the best tenants, and you may face lengthy void periods or take on unreliable occupants.

Therefore, you should consider an investment property in other parts of the UK instead. It may be worth looking at other North East cities; for example, Sunderland investment properties are a popular choice.

But if you’re looking for good-value house prices and attractive rental yields, consider looking to the North West at cities like Manchester or Liverpool. This region is considered by many to be the best place to invest in property in the UK.

According to Zoopla, Liverpool has an average rental yield of over 7.2% – more than 2% higher than the national average. In addition, property prices are £180,268 on average.

While Liverpool suffers from an unearned stereotype, research from One Family showed that Liverpool is the best UK city to live and work, boasting competitive salaries and below-average living costs.