Buy-to-Let Stoke-on-Trent

Buy-to-let Stoke-on-Trent Overview

Stoke, for so long considered up-and-coming, may now be entering the territory of an established buy-to-let hotspot thanks to a number of factors, not least the influx of students and the resulting student-led boom to the economy. Aside from that, investors and developers are now seeing the city as a place where enormous value can be had in renovating a property and building new projects, with demand rising quickly.

The city is in close enough proximity to other midland and northern cities to make it attractive to both those who live and work there as well as those who work in the surrounding areas. According to the Stoke Sentinel, ‘Stoke-on-Trent has been tipped to have the third highest jobs growth in the UK by the end of next year.’ This represents a huge shift and rapid rise in regeneration.

Why Invest in Stoke-on-Trent Buy-to-Let Property?

Stoke-on-Trent is one of the driving forces in the West Midland’s booming property market. House prices in the city increased by 13.1% in 2022, outperforming the national average by over 3%. Stoke-on-Trent looks set for an extremely prosperous period in the coming few years as The Powering Up Stoke-on-Trent Prospectus looks to regain momentum from pre-Covid times through targeted investment in improved infrastructure to connect to and build on the existing strengths in the city.

Much of the prospectus is already underway, the result of which is evident in a report from Irwin Mitchell, who found that the city is set to have the third-highest job growth throughout 2023. As Stoke-on-Trent continues its impressive growth, the region will only become more attractive to investors.

Stoke-on-Trent Rental Market

The rental market in Stoke-on-Trent is extremely strong thanks to the city’s central location in the country. As a result, Stoke attracts a number of working professionals who commute to the surrounding areas, many of whom are in need of rental properties. This increase in demand is evident in the region’s rental yields, with the average yield in the city currently standing at 4.13%, according to PropertyData.co.uk

Best Areas of Stoke to Invest

According to PropertyData.co.uk, the best areas of Stoke to invest in when looking at average rental yields are as follows:

ST6 – 5.7%
ST1 – 5.5%
ST2 – 5.2%
ST3 – 4.5%
ST5 – 4.4%

Current buy-to-let Stoke opportunities

Buy-to-Let Stoke-on-Trent Statistics

£145,904: The average property price in Stoke-on-Trent stands at £145,904 (HM Land Registry, 2023)
11.4%: House prices in the city have increased by an impressive 11.4% in the 12 months to November 2022 (HM Land Registry, 2023)
50%: The Stoke-on-Trent and Staffordshire Enterprise Partnership has a plan in place to grow the local economy by 50% in the next ten years.
15,000: Staffordshire University is home to around 15,000 students.
40%: 40% of the UK population live within a 2-hour drive.

Stoke-on-Trent Economy

One of the key driving forces in Staffordshire’s booming economy is Stoke-on-Trent. Before the pandemic, the city was among the fastest local economies to bounce back from the last recession, outperforming large parts of the UK in terms of economic growth, job creation and innovation.

Whilst the pandemic may have slowed things down in recent years, Stoke-on-Trent looks set for an extremely prosperous period in the coming few years. The Powering Up Stoke-on-Trent Prospectus looks to regain momentum from pre-Covid times through targeted investment in improved infrastructure to connect to and build on the existing strengths in the city.

Much of the prospectus is already underway, the result of which is evident in a report from Irwin Mitchell which found that the city is set to have the third-highest job growth throughout 2023. As Stoke-on-Trent continues its impressive growth, the region will only become more attractive to investors.

Student Accommodation Investment - Stoke Student Property

Stoke: A Student City

Stoke-on-Trent is home to the esteemed Staffordshire University. The university is home to around 15,000 students, many of whom make up the large student population in Stoke-on-Trent. In the last year alone, the number of students in the city increased by 5%, one of the highest increases in the UK according to Savills and it’s clear to see why.

Staffordshire University was named 4th in the Best Universities category at the StudentCrowd University Awards in 2023, beating the likes of the University of Manchester and the University of Liverpool, as well as the illustrious Oxford and Cambridge Universities. The university also ranked 6th for job prospects, 14th for course content and 16th for teaching quality.

With the university continuing to attract students from across not just the UK but internationally, the demand for purpose-built student accommodation in the region is only going to increase.

Life in Stoke and Connectivity

Stoke-on-Trent is a lively and bustling town, with plenty of things to do available for residents in the region. The city benefits from a wealth of green space, with residents in the city living closer to green space than any other city in Britain according to a 2022 survey by Britainexplained.com. In the same report, Stoke also features in Britain’s top 20 for key aspects of daily life such as crime rate and population density.

In addition to the vast amount of green space available, Stoke also features several theatres, museums and art galleries throughout, as well as a number of restaurants and pubs including local favourites like The Saracen’s Head Steakhouse and The Slamwich Club to name a few.

Connectivity:

Located in the heart of the country, Stoke-on-Trent is one of the most well-connected cities in the country. The likes of Manchester, Liverpool, Birmingham and Nottingham to name a few are all within an hour of Stoke via various modes of transport; There are 4 major airports within an hour’s drive, 2 freeports located within an hour’s drive and motorway links with the M6, M6 Toll, M42, M54 and M1. Stoke will also be a High Speed 2 rail hub, meaning London will be just 50 mins away.40% of the UK population live within a 2-hour drive.

Buy-to-Let Stoke-on-Trent FAQs

Is Stoke an up-and-coming area?

Stoke is home to a robust economy that looks set to continue to grow in the coming years thanks to a number of factors, not least the influx of students and the resulting student-led boom in the economy. Investors and developers are now seeing the city as a place where enormous value can be had in renovating a property and building new projects, with demand rising quickly. As a result, Stoke is one of the most up-and-coming locations in the UK.

Is buy-to-let a good idea at the moment?

Buy-to-let is most definitely a good idea at the moment. Despite house price growth slowing down compared to the last few years of exponential growth, rents in the UK are soaring to record levels. As a result, investors are able to benefit from higher-than-average rental yields, and with house price growth set to return in the coming years, there is still potential for UK properties to appreciate in value.

Are house prices going up in Stoke-on-Trent?

Throughout 2022, house prices in Stoke-on-Trent increased by an impressive 13.1% – exceeding the growth in prominent UK cities like Brighton, Newcastle and Preston as well as the UK average of 9.8%. According to Savills, house prices in the West Midlands region are forecast to increase by 8.9% in the next 5 years, with Stoke-on-Trent no doubt at the forefront thanks to its booming economy.