Where To Buy in Stoke on Trent

Stoke-on-Trent is a popular place for investors due to its high yields and high demand for rental housing from the local population. Housing is very affordable but with low wages, many locals are unable to buy their own home. Many of our landlords are from other counties or abroad.

The first step towards a successful investment is to visit Stoke-on-Trent. Our city consists of 6 towns. The commercial capital is Hanley, currently undergoing regeneration. We have wonderful neighbourhoods and really undesirable ones. Many out-of-town investors buy without visiting and then struggle to rent out their properties. Based on our experience, neighbourhoods like Birches Head, Norton Heights, Sneyd Green and modern developments in Burslem, Tunstall and Hanley are desirable areas. Even in these neighbourhoods, there are some streets that are best avoided.

Things tenants look for here:

  1. They desperately need 3 and 4 bed houses
  2. Good decent accommodation
  3. Close to a good school/transport links/amenities
  4. A trustworthy landlord or agent

Some local facts:

  1. A standard 2-bed terrace fetches on average £425-£495pcm rent. You can buy one for £60-80,000. Typical gross rental yields 6-10% for unfurnished houses. 10-12% for houses in multiple occupancies or student lets which are furnished with bills included. However, the market is now inundated with furnished room lets. Our opinion is that the apparent high yields are not so high when void periods are factored in for houses in multiple occupation. Rooms are now sitting empty for a few weeks when 5 years ago there were virtually no void periods.
  2. Capital growth was slow for 10 years but has accelerated during Covid-19. House prices doubled from 2000 – 2004 but when the recession hit in early 2008, capital growth slowed down. From October 2016 to July 2017, prices rose by 0.35% only according to the Land Registry data. The heady days of buying, re-mortgaging in 2 years to release equity to buy another house was over. Then Covid-19 hit and there was a shortage of houses on the market, when matched with high demand has brought house price growth of about 12 – 20% in 2020/2021 depending on the type of property. Terrace houses went up 12% in 12 months in 2020/21. Rental prices also went up, up to 22% for 3 bed houses in the 12 months of 2020/2021. Terrace houses that were £390pcm just 4 years ago today would be marketed at £495pcm, provided the houses are upkept to a good standard. That is a tremendous price growth which makes Stoke on Trent even more appealing to investors. The prognosis is for good steady growth for the next 5 years.
  3. Good rental income can be lost to high repair and maintenance costs that plague the aging housing stock. A high proportion of the housing stock are Victorian terraces built for the potbank workers in the late 1890s. These houses are almost 130 years old. So beware of rising damp, leaking roofs, single glazing, no central heating etc. Beware also of the government’s plans to introduce a minimum energy rating of C for rental houses. Most Victorian terraces are rated D or E, so these would need to be upgraded, such as putting in thermostatic controls on radiators, LED lighting and solar panels to bring them to a category C. Belvoir Stoke is working with solar panel installers to help landlords manage this new government regulation, to safeguard their investment for the future.

If and when you come to visit Stoke-on-Trent, do come to visit us, so we can discuss further. We have pay and display parking outside our office and tea and biscuits inside! Our office is just up from the Potteries Museum, on 8 Albion Street, postcode for satnav ST1 1QH.

Take a look at the Belvoir Rental Index by clicking on the button below.

Want to expand your portfolio? 

As buy-to-let specialists, we can put you in contact with our trusted mortgage advisers or wealth management advisers St James Place, who can help you plan your expansion. Whether to release equity, pension planning, investment planning or so on, our financial adviser friends will be able to guide you through the process.

*Belvoir Stoke on Trent are not financial advisers or wealth managers. The value of property investments can go up or down with time. You should always seek professional legal and financial advice before buying a property.

Image to the right: Map Of The 6 Towns Of Stoke-On-Trent

Six_Towns_Map

Arrange a free market appraisal

If you’re a landlord, looking to let or you’re just interested in how much your property might be worth, the best way to get an accurate and detailed understanding is through a free one-to-one appraisal with one of our experienced local agents. Request an appraisal with us using the form below.

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