York is one of the UK’s most desirable cities. In 2018, the Conde Nast Readers’ Travel Awards 2018 ranked it as the best city in the country for architecture. The Sunday Times went a step further, naming it the Best Place to Live in the UK. A year later, it awarded it Best Place to Live Regional Winner status.
History, culture, academia and the arts all contribute to York’s success. It’s popular with residents and tourists alike, with 6.9 million visitors heading there every year.
York is also increasingly popular with property investors. Let’s take a look at why.
York’s property market credentials
Property investors benefit from the potential for capital gains and from rental income. In terms of the former, York has plenty to offer.
Zoopla reports a 29.33% rise in York’s property values over the decade to October 2020 – an average value increase of £64,849. Rightmove, meanwhile, reports that the average York property value (which stands at £282,130), is now 7% above the city’s 2017 peak.
Demand currently is strong, with Zoopla reporting a 28% increase in the level of buyer demand in May and July 2020 compared to the same period of 2019. The average time taken to sell a home in York is just 27 days.
The Stamp Duty holiday, which enables those buying UK properties to save as much as £15,000 in purchase costs, has done much to create a surge in demand, but only because it overlays the fundamental strength of York’s property market.
According to Savills, Yorkshire and the Humber is projected to see an increase of 21.7% in property prices in the years to 2024. That’s higher than the UK-wide average of 20.4%. Within York itself, Savills reports a 50% jump in agreed house sales in the four weeks to 16 August 2020, when compared to the same period in 2019.
Strong rental demand
Investors need to consider a property’s potential for rental income, as well as capital gains. York wins in this respect, too. The Office for National Statistics has been publishing monthly growth in private housing rental prices since January 2006. Every month since then, rents in Yorkshire and The Humber have either held steady or risen. There hasn’t been a single month when rents in the region have fallen.
This long-term stability has led to an average rent of £1,190 pcm in York, according to Zoopla data from October 2020. Apartments command higher rents than houses for both one and two-bedroom properties. At the time of writing, a one-bedroom apartment in York has an average asking rent of £735 pcm, while a two-bed apartment has an average of £1,106 pcm.
Rents in York have risen by 4.5% since July 2019, based on Zoopla’s figures. The market is buoyant and fast-paced, with the average time taken to let a property standing at just 13 days.
Tenant demand in York has risen by 12% over the past year. indeed, according to the ARLA Propertymark Private Rented Sector report, Yorkshire had the highest average number of new tenants registered in lettings agents of any UK region in August 2020. UK-wide, tenancy durations hit a record high of 21 months, according to the same report.
“Our latest figures reveal the rental market still isn’t showing any signs of slowing down. We continue to see record breaking levels of rental stock and demand from tenants, painting a positive picture for the future of the private rented sector.”
Angela Davey, President, ARLA Propertymark
With excellent potential both for capital growth and for rental income, it’s clear why York is attracting such keen interest from investors. The city is serving up some superb investment opportunities in response to that demand.
One of the best is Icona, just ten minutes from York’s main employment and leisure districts. Due for completion in January 2021, the 32 apartments, which include three stunning penthouses with private terraces, will provide elegant, high-specification residences for York tenants. With views of York Minster from some homes, balconies and a spacious communal roof terrace, Icona has much to offer.
Investment in Icona starts from £245,000 for a one-bedroom apartment. Interestingly, investors can choose between long-term rentals and short-term holiday lets/Airbnbs at Icona, with yields varying based on the type of residence they opt for.
To find out more, you can contact Fabrik Invest on 020 8175 9891, email firstname.lastname@example.org or visit www.fabrikinvest.com.