Finding The Perfect Investment Property In Northampton
Are you an experienced property investor, or someone looking to dip your toes into the world of property investment? If so, Northampton could be the perfect destination for you. Northampton is an East Midlands town with much to offer in terms of potential investment opportunities. This guide will explore why Northampton is a great place for property investors, and provide an overview of the average property prices, yields, student population, and more. With the help of this guide, you'll be able to make an informed decision when selecting a property to invest in. So read on and discover what Northampton has to offer!
GVA £111bn
Population 3.7m
Property Growth 3%
Rental Growth 7%
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Why Northampton Is A Great Place for Property Investment
Northampton, with a population of around 225,000, is a fantastic place for property investment. Its location as a popular commuter town, with easy access to London, Birmingham, Oxford, and Cambridge, makes it an attractive choice for many professionals looking for a peaceful place to call home.
One of the main draws of Northampton is its picturesque surroundings. The countryside is dotted with charming market towns, leafy villages, historic churches, and magnificent country houses. For those who appreciate the outdoors, there are plenty of lovely parks and green spaces to explore. Northampton also has a rich history, particularly in the production of shoes and leather during Britain's Industrial Revolution. Today, the town still boasts a thriving cultural scene and a strong heritage. Historic landmarks like the Guildhall and the All Saints Church are a testament to Northampton's past. In addition, Northamptonshire is a key area for the UK's food and drink industry, further adding to the town's appeal. Getting around Northampton is a breeze, thanks to its accessible bus and rail system. Many locals also prefer to get around by car, with ample parking available. When it comes to accommodation, Northampton offers a variety of options to suit every taste. From new apartments to Victorian and Edwardian terraced houses, there is something for everyone. The cost of living in Northampton is quite reasonable, making it an attractive option for both residents and investors. With its growing economy, thriving cultural scene, and excellent transport links, now is a great time to invest in property in Northampton. The property prices are affordable, and there is a strong rental demand. So, why not take advantage of this opportunity and invest in Northampton today?
The Current Property Market In Northampton
The current property market in Northampton is thriving, making it an ideal location for property investment. The average property price in the Northampton postcode area is £297k, with a median price of £260k. Over the last twelve months, the average price has increased by £20k, or 7%.
When it comes to property types, an established property in Northampton has an average price of £300k, while a newly built property comes with a slightly higher price tag of £360k.
In terms of property sales, there have been 8k transactions in Northampton over the past year. The majority of properties were sold in the £190k-£250k price range, with 1,900 (22.5%) properties finding buyers. This was closely followed by the £250k-£325k price range, with 1557 (18.9%) properties sold.
Looking at specific areas within Northamptonshire, the average house price in North Northamptonshire was £270,460 in April 2023, marking a 5.3% increase from the previous year. Meanwhile, in West Northamptonshire, the average house price was £299,993, showing a similar 5.3% increase.
Northampton remains an incredibly alluring place to invest in property, given the current market conditions. One of the major advantages that this bustling town possesses is its affordability in comparison to other regions, making it a highly desirable investment opportunity. Furthermore, the town is constantly undergoing revitalisation, and its thriving economy and flourishing tourism industry make it an ideal destination for prospective investors. It ranks as the 46th cheapest postcode area out of the 105 postcode areas in England and Wales. So, whether you're a seasoned investor or new to the property market, Northampton offers great potential for growth.
Revitalising Northampton: New Era of Growth through Investment and Regeneration
Northampton Borough Council was awarded a £24.9 million grant from the government's Towns Investment Fund (TIF) to kickstart a new era of growth and regeneration in Northampton. The original bid for £37 million aimed to revitalise eleven key spaces, but two locations were later covered by an £8.4 million grant from the government's Future High Streets Fund. Now, the grant will be split between eight significant projects.
"This money will allow us to progress several schemes across our town, which will help us not only transform our high streets but significantly boost our already compelling cultural offer," says Jonathan Nunn, then Head of Northampton Borough Council and now Leader of West Northamptonshire Council (WNC).
The TIF grant has become West Northamptonshire Council's contribution to these regeneration projects, working alongside private and alternative investments. Additionally, the Smart Move Northamptonshire initiative utilises technology to provide 'live' travel information, promoting different ways to explore the area, such as electric transportation, rail, bus, and cycling.
With the Towns Fund, Northampton is expected to undergo a dramatic transformation. The Major Projects and Regeneration team is responsible for overseeing and managing a portfolio of projects aimed at improving the pride of place in West Northamptonshire.
These projects include the transformation of the Northampton Market Square to enhance the existing market and put the community at the heart of the space. A derelict building will be renovated into an innovative cultural centre, and the pedestrianised areas of Abington Street will be regenerated. There are also plans to develop prime land at a key gateway site, create high-quality residential developments, and revitalise a Grade II-listed former pub.
Furthermore, a Heritage Park will provide much-needed amenity space, and an extension of the unique museum linked to the Rennie Mackintosh House is in the works. Lastly, the creation of the Northampton Social Enterprise Investment Fund will drive and support the growth of social enterprises in the area.
With these ambitious projects in the pipeline, Northampton is poised to undergo a remarkable transformation that will benefit residents and investors alike. The investment and regeneration initiatives are set to make Northampton an even more desirable destination for both living and investing.
Buy-to-Let Yields In Northampton
Looking to invest in buy-to-let properties in Northampton? You're in luck! The buy-to-let market in Northampton offers excellent opportunities for investors. One of the key factors that make Northampton an attractive option is the affordability of property prices compared to neighbouring areas like Buckinghamshire. On average, property prices in Northamptonshire are around 40% cheaper, while rental prices remain similar. This means that investors can enjoy higher returns on their investments.
The rental market in Northampton caters mainly to residents and those who work in the area, as well as students. According to Zoopla, the average rent in Northampton is £1,100 per month. Let's take a closer look at the rental prices for different property types.
For studios, the average rent ranges from £625 to £900 per month. One-bedroom properties typically rent for £725 to £775 per month, while two-bedroom properties can fetch £850 to £1,050 per month. If you're considering larger properties, three-bedroom homes typically rent for £1,200 to £1,400 per month, while four-bedroom or larger properties can command rents of £2,500 to £4,000 per month.
With below-average property prices and strong rental demand, Northampton offers attractive letting yields for investors. Whether you're looking to invest in a studio apartment or a larger family home, Northampton's buy-to-let market presents promising opportunities for solid returns on your investment.
Targeting The Student Population In Northampton
Investment in UK Purpose-Built Student Accommodation (PBSA) reached a record £7.2 billion in 2022, highlighting the lucrative opportunities in the student housing market. And Northampton, being a university town, offers excellent potential for investors. The University of Northampton, officially formed in 2005, attracts a significant student population of 15,000+, creating a demand for on and off-campus accommodation.
The most popular off-campus student accommodation locations for University of Northampton students include areas like Abington, St. James, and Semilong. These areas are within proximity to the university and offer convenient access to amenities and transport links.
Landlords operating houses in multiple occupations (HMOs) or rooms for rent in Northampton can earn attractive rents. In popular student areas like NN1, room rentals average around £130 per week per room.
Investors interested in buying or setting up an HMO in Northampton should familiarise themselves with the HMO licensing requirements in West Northamptonshire. Compliance with these regulations is crucial for operating legally and ensuring the safety and well-being of tenants.
For investors considering self-contained studios, typical student property values range from £80,000 to £140,000. Rent prices for these studios vary depending on the area and facilities provided, ranging from £850 to £1,400 per month.
Investing in student property in Northampton can yield attractive returns, with average yields starting from around 7% to 9%. The growing student population and the consistent demand for student accommodation make Northampton a promising market for property investors looking to target the student market.
Serviced accommodation in Northampton
When it comes to accommodation options in Northampton, there is one type that stands out for its versatility and high demand - serviced accommodation (SA). People associated with the University of Northampton, including guest speakers and lecturers who visit throughout the year, often prefer the convenience and comfort of SA apartments. On the other hand, students, who may require longer-term accommodation, often choose houses in multiple occupations (HMOs) or self-contained studio units. The University of Northampton's distance learning programs also create a higher demand for lecturers who may require short-term SA stays. Additionally, the ongoing construction in Northampton, driven by the town's development and big companies, brings in a continuous flow of contractors and construction workers who also seek SA options. Let's not forget about Northampton Town F.C., which attracts visiting trainers, players, staff, and fans in need of accommodation. With the new £330 million Waterside campus of the University of Northampton, investing in SA, HMO, or self-contained studio units presents an excellent opportunity to cater to students, corporate professionals, contractors, and visitors. With average nightly rates in Northampton at £50 + cleaning fees, SA can provide significantly higher rental yields compared to traditional long-term rentals. With high property interest and demand in Northampton, investing in serviced accommodation could be a wise choice for property investors.
Key Business Sectors and Growth Areas in Northampton
Northampton is not only a great place for property investment but also a thriving hub for key business sectors and growth areas. The University of Northampton's new £330m Waterside Campus is a prime example of the town's commitment to economic development. Built on a site by the River Nene that was once filled with derelict buildings, the campus has transformed the area and replaced two former campuses. With approximately 15,000 students and 2,000 staff members based there, the Waterside Campus is a major driver of growth in Northampton.
Looking ahead, there is still room for further expansion and development, allowing the university to increase its capacity in the future.
In addition to the university, Northampton has outlined its Economic Growth Strategy, which aligns with both local and national priorities. The strategy aims to bolster inward investment, capitalise on the opportunities presented by the Oxford and Cambridge Arc, implement a comprehensive Towns Master Plan, and promote job creation and skills development.
Other key priority areas identified in the strategy include business growth, creating a favourable environment for doing business, and aligning with SEMLEP's Local Industrial Strategy and Strategic Economic Plan.
One key business sector in Northampton is the logistics and distribution industry. The town's strategic location in the heart of England, with excellent transportation links including the M1 motorway and the West Coast Main Line, makes it an attractive choice for companies looking to establish their distribution centres. Northampton has also seen significant growth in the creative and digital industries, with several creative agencies, digital marketing firms, and tech startups choosing to call the town their home. This sector is expected to continue growing in the coming years, driven by the availability of skilled talent from the University of Northampton. Additionally, Northampton's healthcare and medical technology sectors have been identified as areas with great growth potential, with plans to attract investment and support innovation in these industries. These key business sectors, along with the town's commitment to economic development, make Nortgrowth a potential destination for property investment.
Factors to Consider Before Investing in Northampton Property
Northampton is quickly becoming one of the most sought-after places to live in the UK, and investing in property in this thriving town is a smart move. With its affordable prices, strong rental demand, and growing economy, there has never been a better time to invest in Northampton. However, before you dive in, there are a few factors to consider.
First and foremost, research is crucial when deciding what property investment model suits you best. Are you interested in buy-to-let properties, student accommodation, or serviced accommodation? Understanding the market and potential returns for each option is essential for making an informed decision.
Additionally, seeking financial advice is highly recommended, especially if you're new to the property investment market. A financial advisor can help you determine what type of mortgage you qualify for and what profitable returns you can expect to generate from your investment.
We are property investment professionals with years of experience in the market. We can provide valuable guidance and assistance to both new and experienced investors, helping you navigate the process and maximise your property investment.
In conclusion, investing in property in Northampton is a wise choice. With its affordable prices, strong rental demand, and growing economy, the potential for growth and profitability is significant. So, don't hesitate to explore the opportunities that Northampton has to offer and take advantage of this exciting investment market.
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