York's Active Property Market

The city of York has a long-term standing as one of the best places to live in the UK. A combination of its rich heritage, stunning architecture, high quality of life, and convenient connections to other major UK cities creates a constant demand for properties. York’s population of around 220,000 and its estimated 8.4 million tourists visit each year make it an ideal place for investors to expand their portfolios.

In this article, we’ll look at the increase in demand for properties, a year-on-year comparison of housing prices, current rental yield rates, and some predictions for the future of York’s property market.

A Growing Demand for Properties

Comparing the number of sales agreed in York in the first 9 weeks of 2023 to the first 9 weeks of 2024 shows the high demand for properties. In 2023, the number of sales agreed in this period was 578, but in 2024 it jumped up by 23.5% to 714. In comparison with the national numbers, the UK as a whole showed an 11.5% year-on-year increase in the same 9 week period, highlighting the high demand in York.

For investors looking to expand their portfolio in this buzzing housing market, keeping a close eye on the market is crucial. But it’s important to act strategically, analysing the average housing prices across various postcodes and property styles, as well as keeping up with rental yield rates for those interested in buy-to-let opportunities.

A Comparison of Property Costs

Properties in York reached an average sold price of ￡347,173 across the last year. This is an increase of 4% compared to 2022, and a 9% increase since 2021. Most of the properties sold were terraced properties, and the average sale price was ￡350,184. Semi-detached properties reached ￡339,480, while flats sold for an average price of ￡217,606.

However, these figures vary massively when broken down by postcode. The YO11 area currently has an average asking price of ￡191,861, significantly below York as a whole, whereas YO61 and YO19’s averages are ￡445,865 and ￡426,542 respectively.?

Rental Yield Rates

Investors looking to expand their portfolios with buy-to-let properties will know how important it is to keep an eye on the rental yield rates in their desired areas. The average rental yield across the UK in January 2024 was 4.72% - an increase on January 2023’s rate of 4.29%.

In York, the rental yield once again varies significantly across different postcode areas. Postcodes such as YO1 and YO10 are currently bringing the highest returns on investment, sitting at 5.3% and 4.9% - above the national average. However, YO62 and YO61 are demonstrating rates of 3% and 3.1%, making them riskier choices for buy-to-let investors.

Predictions for the Future

York’s property market is looking promising for 2024 as we move into Q2. Property prices are predicted to grow by 18.8% over the next 5 years but remember this is an average and for the whole market, niche investments such as HMO’s see a substantially higher annual increase, which should be reassuring for investors looking to purchase properties to renovate and re-sell. The steady increase in rental yield will also be appealing to buy-to-let investors looking for more passive income and long-term returns on their investment. However, as we know, the market is constantly changing. There could be further changes later in the year if we see a change in the UK government, so it’s vital to stay up-to-date and well-informed as the market evolves.

Final Words

York’s active property market is ideal for investors at the moment, whether you’re interested in developing properties for re-sale, or you’re looking for buy-to-let opportunities. But staying up to date on market trends and changes, and ensuring you are acting strategically, are crucial moves for success. We always recommend seeking tailored advice from professionals who are familiar with the intricacies of York’s property market so you know you’re making the correct decisions to generate the best return on your investments.