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York’s hidden gems for savvy investors
13-03-2024 | Yorkshire & HumberFor anyone who knows York, they’ll know that it is a city with a rich and magnificent history. With architecture from mediaeval times and gorgeous Georgian townhouses, investing in York is an exciting prospect for any property enthusiast. Here, we take a closer look at why investing in York is a profitable choice, especially for savvy investors.
Why York?
York is a bustling tourist magnet, drawing around 6.9 million visitors annually, as reported by Visit York. For a property investor, this translates into golden opportunities, especially in the holiday property market where York’s rich heritage acts as a constant allure.
Beyond the ancient walls, York’s legacy continues through its railway and chocolate-making heritage, with giants like Terry’s and Rowntree’s – now under Nestle’s wing – calling it home. The city thrives on a service-based economy, from financial services and tourism to health and education, not to mention a burgeoning tech scene catching speed.
Things to do in York
For visitors and locals alike, York provides a list of must-see sites, including York Minster, the historic York Castle Museum, and the immersive Jorvik Viking Centre, among others.
The city is also encircled by the renowned York City Walls, offering a unique vantage point of its heart, while the River Ouse offers tranquil cruises.
Transport connections
Positioned halfway between London and Edinburgh, York’s accessibility is unmatched. The city’s excellent rail and road connections make it an attractive proposition for commuters and tourists.
This, coupled with the innovative York Central development scheme and potential relocation of the House of Lords, underscores York’s appeal as an investment hotspot.
Education
York is not just any student city; it’s a vibrant educational community with institutions like York St. John University and the University of York adding to the city’s dynamic energy. This presents a lucrative avenue for investing in student accommodation, with various popular areas around the city offering a mix of housing options.
So, if you want to get involved with renting to students, this is the perfect city to do so!
Regeneration projects
Numerous regeneration projects are currently taking place in York. This is always a positive sign for any property investor, as with the regeneration projects come more opportunities and increased profit. So, what are some of these projects?
Bootham Park
Enterprise Retirement Living is planning something special for Bootham Park: a vibrant community of 170 homes dedicated to independent living for the older generation. It’s going to be a place buzzing with life and laughter, catering to all the needs of its residents.
Castle and Eye of York
Back in February 2022, the council shared plans for a spanking new public space at Castle and Eye of York – truly the centrepiece of an ambitious master plan. This is an interactive project as residents and businesses in the area have been able to give their input into what they want it to look like.
Castle Gateway
The Castle Gateway area is on the cusp of transformation. This redevelopment is all about creating a vibrant, mixed-use space that adds even more zest to York’s city centre.
Former British Sugar and Manor School sites
Since December 2014, there’s been a push to breathe new life into the old British Sugar and Manor School sites with homes and community spaces. It’s been a journey of collaboration to ensure environmental and design perfection.
Germany Beck Steps into the Future
Approved back in 2013, Germany Beck’s housing project is set to bring new homes to York’s community. Of course, with all of these new housing projects comes the perfect opportunity to invest.
Guildhall
Imagine the historic Guildhall complex reborn as a bustling hub with serviced office spaces, a café, and a restaurant, all while retaining its grandeur and importance. That’s the vision for repurposing these iconic buildings.
Derwenthorpe
Derwenthorpe is shaping up to be a beacon of sustainable living with its energy-efficient homes. This exemplary community is all about forward-thinking and eco-friendly living. This is perfect for your potential tenants who are laser-focused on green living.
City Centre
October 2023 marked the relaunch of a 10-year strategic vision for York City Centre by the council’s Executive. This vision is now moving into the action phase, promising more ways for residents and businesses to contribute and mould the heart of York.
Smoother travels
There is a £38m budget currently being invested into upgrading the A1237 York Outer Ring Road. The premise of this project is to ensure that commutes are smoother and cleaner.
Also, linked to travel is the Scarborough Bridge project that aims to link the railway station, city centre, and residential suburbs with a new pedestrian and cycle bridge right by the current Scarborough Bridge.
There’s also exciting news for Haxby, with plans to bring back the train station, promising easier travels for our community.
Best areas to invest in York for savvy investors
With property prices hovering around the national average and a historical upward trajectory in property values, York presents a solid investment ground.
The rental market is equally promising, with competitive yields and a growing demand for both long-term rentals and holiday lets, making York a city where the investment opportunities are endless.
West York – average property price of £200,000 – £280,000
West York presents a great value proposition with a mix of traditional and modern housing. Areas like Holgate are within walking distance of the city centre, while Acomb offers a vibrant high street.
With some of the strongest yields in York, at 5.3% in YO26 and 5.5% in YO24, it’s an attractive area for families and investors alike.
North York – average property price of £210,000 – £320,000
From the upscale suburb of Clifton to the family-friendly Clifton Moor, the north offers diversity in living options. Here, history meets modern living with areas like New Earswick, reflecting York’s chocolate heritage.
With York Hospital nearby and several business parks, this region promises steady demand for housing. Investment yields range between 4.4% and 5.3%, which definitely makes it an area worth exploring.
East York – average property price of £260,000 – £280,000
East York, with its amalgamation of villages like Fulford and Heslington into the city’s fabric, offers a variety of homes from quaint cottages to modern estates. Its proximity to the University of York makes it a hotspot for student lets, promising yields of up to 4.7%.
City Centre – average property price of £240,000 – £370,000
Encased by the historic York City Walls, the city centre is a compact maze of beauty, history, and vibrant living. It’s all there: charming terraced houses, majestic townhouses, modern apartments, and even penthouses with views of the River Ouse.
The demand for holiday lets in this area is just as impressive as its architecture, making it a prime spot for investors eyeing the lucrative tourist market. With yields in the YO1 area around 4.4%, it’s a lively investment choice.
South York – average property price of £300,000 – £350,000
The southern suburbs are known for their upscale living, with areas like Dringhouses offering luxury family homes. Victorian terraces and grand detached houses line the streets of South Bank and Nunthorpe, near the scenic Knavesmire.
Bishopthorpe Road, or Bishy Road, is the epitome of trendiness with its array of shops and cafes. Yields here average 4.1%, appealing to those looking for a mix of stylish living and investment potential.
York offers a spectrum of investment possibilities for savvy investors, set against the backdrop of its history and heritage. With a blend of its cultural charm, strong rental demand, and significant development plans, York stands out as a beacon for property investors looking to capture a piece of its magic.
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