The Best Areas of Lancaster to Invest in a Buy-To-Let

Located in Lancashire, the red rose county, the historic city of Lancaster boasts a rich heritage and a vibrant cultural scene. Renowned for its iconic castle and prestigious university, Lancaster offers a unique blend of historic charm and modern living. In this area guide, we’ll look at the best areas for a Lancaster buy-to-let. 

Lancaster offers incredible architecture, stunning open spaces, and esteemed universities. There are a range of quirky boutique shops to explore and an array of galleries and museums to discover such as Lancaster Maritime Museum and the Peter Scott Gallery.

Home to vibrant neighbourhoods, independent shops, and open spaces, Lancaster has a neighbourhood for everyone. Connected with an excellent transport system, it’s the perfect city for families, students, professionals, and those looking for a modern but rich cultural scene.

Why invest in profitable Lancaster buy-to-let opportunities?

Lancaster offers a compelling proposition for buy-to-let investors seeking a stable and rewarding market. 

Firstly, home to over 16,000 students, there is a thriving student scene. This results in a constant demand for rental properties, ensuring high occupancy rates and a reliable income stream for those looking to purchase a buy-to-let in Lancaster.

Beyond education, Lancaster has a diverse economy from tourism, business, and healthcare. Therefore, there is a low risk of economic downturns impacting the rental market, giving you and your investment peace of mind.

Attracting businesses and young professionals, Lancaster has a growing population with a sustained demand for housing, making it a good time for an investment opportunity.

Lancaster offers a range of neighbourhoods catering to a variety of renters, depending on your preferences. From students looking for shared accommodation to professionals looking for single units or family homes, the city provides opportunities for investors to cater to different needs and price points.

Regeneration projects in Lancaster

Lancaster is on a mission to create a thriving and sustainable city for everyone. Various regeneration projects are transforming key areas, attracting new residents, and boosting property values.

The University Quarter Masterplan

Focused on the area surrounding Lancaster University, this project involves the development of new student accommodation, academic buildings, and commercial spaces. This will further solidify Lancaster’s position as a leading student city.

The Lancaster Canal Quarter Masterplan

This project revitalises the Lancaster Canal, transforming it into a beautiful and functional waterway. This project aims to improve the local economy and boost its housing, cultural, and leisure offerings over the next ten years. There are five major development phases to deliver this project.

Early Housing Regeneration Proposals

The council’s home strategy recognises the need to deliver housing to the highest environmental standard and supply affordable housing within the city.

There will be two developments, including Nelson Street which is to be a private sector-led development. The second development is taking place at the previous council-owned St.Leonardsgate car park which is being built into 140 affordable homes.

Northern Gateway

This phase consists of extending the Grand Theatre and transforming various derelict buildings into cultural spaces for the community.

Heron Works and Canalside

Developers Maple Grove are working with the city council to transform the previous Herons Works site into a housing development to the west of the Lancaster Canal, providing great investment opportunities.

Stonewell Courtyards and Former Mitchell’s Brewery Square

Another great potential investment opportunity as Riverstone Developments develops a planning application for their major private landowner client to bring certainty. The master plan includes a leisure, commercial, cultural, and housing mixed-use, with a new public realm.

Moor Mills

In the last phase of this development is a potential community-led housing opportunity the council is keen to promote.

Things to do in Lancaster

Lancaster offers a captivating blend of historical intrigue, cultural delights, and outdoor adventures. Here are just a few of the top attractions:

• Explore Lancaster Castle: Immerse yourself in history at Lancaster Castle, one of the largest mediaeval castles in England.
• Stroll through Williamson Park: Explore the expansive Williamson Park, boasting beautiful gardens, a renowned butterfly house, and Ashton Memorial.
• Sail the Lancaster Canal: Take a scenic boat trip along the Lancaster Canal, offering stunning views of the surrounding countryside.
• Discover the Lune Estuary: Explore the Lune Estuary, a designated Area of Outstanding Natural Beauty, perfect for birdwatching and nature walks.
• Catch a performance at the Lancaster Priory: Attend a concert, play, or other performance at the historic Lancaster Priory Church.

Transport and accessibility

Lancaster boasts a well-connected transportation network, making it easily accessible from all corners of the UK. Here’s a look at the diverse travel options Lancaster offers:

• Efficient road network: Lancaster sits at the junction of the M6 motorway and the A6 road, providing easy access to major cities in the North West and beyond.
• Railway hub: Lancaster Railway Station offers direct connections to key destinations, including London, Manchester, Edinburgh, and Glasgow.
• Local bus network: A comprehensive bus network connects various neighbourhoods within Lancaster and surrounding areas.
• Airports: While Lancaster doesn’t have an airport, Manchester Airport and Liverpool John Lennon Airport are within easy reach by car, train, or coach.

Property market overview

Lancaster holds a variety of opportunities for investors seeking a stable and rewarding buy-to-let investment.

From the flourishing student population to the growing professional sector, there is a healthy demand for rental properties across various budgets.

This combined with Lancaster’s rich heritage, stunning scenery, and excellent transport links makes it an attractive place to live, further strengthening the rental market for potential investment opportunities.

Lancaster offers a variety of investment opportunities. Whether you seek a period property, a modern apartment, or a student-friendly townhouse, you will find a wide range of options to suit all of your investment goals.

Rental yield

Reports indicate a steady rise in rental prices across Lancaster. According to Rightmove, the average rent for a two-bedroom property currently sits at £676 pcm. This upward trend suggests the promising potential for investors.

Lancaster’s diverse economy and growing population position the city for continued growth. This economic strength is likely to sustain demand for rental properties, potentially leading to further rental price increases in the long term.

As an investor, it is important to conduct thorough market research before making any investment decisions as the market can be influenced by various factors.

The best areas of Lancaster to invest in buy-to-lets 

Lancaster has a variety of investment areas perfect for buy-to-lets. Whether you are looking to target the growing student population, families, or professionals, here are some of the best areas of Lancaster to invest in a buy-to-let.

The City Centre

Lancaster city centre is a popular residential spot with a bustling atmosphere. It offers a mix of traditional terraces, period houses, and modern apartments. Close to Lancaster University, there is a high demand for both students and young professionals. 

There is also a great range of amenities from shops, bars, and restaurants to cultural attractions and parks.

The average sold price for a terraced property in Lancaster in the last 12 months is £167,991. The average rent is £927pcm. 

Rental yields in the city centre are typically around 5-6% and come with high occupancy rates and potential for capital appreciation, making it a worthwhile investment.

Bowerham

Situated just south of the city centre, Bowerham is a popular area for families and young professionals. It offers a good mix of housing options, including terraced houses, semi-detached properties, and modern estates. 

There are plenty of good schools and a strong community, making it perfect for families. If you are looking for a long-term and stable tenant, then this could be a good area to invest in a buy-to-let.

Bowerham also has a range of regeneration projects in motion which are likely to boost future property rates, so now might be a good time to secure a good buy-to-let.

The average sold house price in Bowerham in the last 12 months was £485,000 and the average rent is £2600. This offers a 6% rental yield which provides a good balance between income and capital appreciation.

Skerton

Located in north Lancaster, Skerton offers a more affordable option for investors. It primarily consists of terraced housing and modern estates. 

Offering more affordable housing within Lancaster, this area could be a good opportunity for investors with a lower budget. It is also located close to the University of Cumbria campus providing a steady demand for rental properties.

The average price of semi-detached properties in Skerton was £185,312 and the average cost of rent was £1000. This provides a 6% rental yield, offering a good return on investment.

Bailrigg

Bailrigg lies southwest of the city centre and is home to the main campus of Lancaster University. It offers a variety of student accommodation options, including apartments and shared houses. 

Bailrigg is the heart of Lancaster’s student life creating a constant demand for rental properties throughout the academic year.

This could be a good opportunity for those looking for more of a hands-off investment as when investing in student housing, it is common to use property management companies to deal with tenant issues and maintenance.

Due to the high demand for properties here, properties in Bailrigg had an overall average price of £640,000 over the last year. The average cost of rent here is £2600, therefore the average rental yield is around 4-5% which is a good return on investment coupled with high rental demand. It is important to consider the additional costs involved in student buy-to-lets.

Ready to invest in a Lancaster buy-to-let 

Lancaster offers a dynamic buy-to-let market with various opportunities for investors. Whether you are looking for high rental yields, capital appreciation, or a hands-off investment, there’s an area in Lancaster that suits your goals. 

By carefully considering your investment strategy and conducting thorough research, you can make an informed decision and become part of Lancaster’s exciting property market.

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