Worcester Buy-to-Let Guide

Worcester is a city that sits just below the UK average regarding property prices.

According to the HM Land Registry, the average cost of buy-to-let properties in Worcester is £266,072. In addition, property growth in the city was recorded at 2.40% year-on-year.

If you were to buy a detached property in Worcester, you would pay £443,912. Semi-detached homes would cost around £274,210, while terraced houses and flats would cost £221,982 and £145,447, respectively.

However, if we look at the average house price in the UK, it currently stands at £292,882, with a price growth of 0.80% year-on-year.

Rightmove states that most property sales in Worcester during the last 12 months were for semi-detached homes. The property website also shows that prices are 2% cheaper than a year ago.

This could be down to high inflation and substantial interest rates throughout 2023. However, mortgage rates and inflation decreased significantly in the latter months of the year.

Please note: The prices in this section come from Rightmove, while rental yields are calculated using the information on Housesforsaletorent.co.uk.

Worcester City Centre

Worcester city centre is a commercial district with a limited residential scene, especially compared to cities like Liverpool and London. That said, you can still find some properties in the city centre, predominantly apartments, terraced housing and period-style properties.

In the suburbs surrounding the city centre, you can find properties built in the 50s and new-build homes. There are also bungalows, detached properties and semi-detached houses as well as some airbnb investment property opportunities.

Average Property Price in Worcester City Centre

The average property price in WR1 is £193,480.

Average Rental Yield in Worcester City Centre

The average rental yield in Worcester City Centre is 4.68%.

East of the River Severn, you can find the following areas:

• Barbourne
• Berkeley Beverborne
• Berkeley Alford
• Blackpole
• Brickfields
• Claines
• Cornmeadow Green
• Lyppard Hanford
• Merrimans Hill
• Ronkswood
• Rainbow Hill
• Warndon

This part of the Worcester area has numerous new-build villages and business parks, boosting the residential market. The area has good transport links to the city and access to the M5 and A449 for people who need to get to other parts of the West Midlands.

Average Property Price in East Worcester

The average property price in WR3 is £325,322.

The average property price in WR4 is £235,159.

Average Rental Yield in East Worcester

The average rental yield in WR3 is 3.11%.

The average rental yield in WR4 is 4.09%.

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The western Worcester suburbs include:

• Crown East
• Lower Wick
• Dines Green
• Henwick
• St. Johns

These areas are near the University of Worcester Henwick campus and have amenities. However, reaching Worcester city centre and the M5 motorway is more challenging in this part of town.

Average Property Price in West Worcester

The average property price in WR2 is £303,893.

Average Rental Yield in West Worcester

The average rental yield in WR2 is 3.53%.

The lack of new housing to accommodate rising demand has resulted in the growing popularity of new-builds across the UK, and Worcester is no exception.

Worcester City Council have introduced various regeneration schemes to enable new affordable housing in the area. New-build properties are popular with tenants and landlords alike.

For tenants, properties like these are usually outfitted with the latest trending amenities – such as spas and cinema rooms. Typically, eco-technology (for example, solar panels and air source heat pumps) is at the forefront of design, meaning lower energy bills and more eco-friendly appliances. 

New-builds often require less upkeep for landlords and offer significantly lower maintenance fees, resulting in a more affordable investment.

Read More: Discover more about this investment trend with our recent buy-to-let guides, covering everything from off-plan property in Eastbourne to the latest UK hotspots!

If you are looking to buy-to-rent for the first time, you need to know what to look for in a buy-to-let property.

Firstly, you’ll want to find good value properties. Does Worcester offer this? Yes and no.

While properties in Worcester are cheaper than the national average, other places in the UK can typically offer even better value for money, such as Liverpool, which has an average property value of under £180,000 (according to HM Land Registry). You can also find good-value Wolverhampton property investment opportunities if you want to stick to the West Midlands.

Secondly, you’ll also want to ensure the area has sufficient tenant demand, driving up rental prices. Worcester’s rental yield is just under 5%, less than the national average. However, if you look further north, you’ll find places like Liverpool and Manchester with much higher rental yields, sometimes exceeding 7%, depending on the postcode.