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Are buy-to-let properties in Bradford profitable?

Bradford, located in West Yorkshire, has taken one of the top spots for areas in the UK that are showing the best rental yields. Often overlooked in the property market, this bustling city has plenty on offer which makes it attractive to both renters and landlords. An affordable place to live with easy transport links to the nearby city of Leeds, this diverse location is becoming an increasingly popular city which attracts a wide range of renters including families, students, and professionals. 

It comes as no surprise to us that with so much potential in its grasp, the demand for buy-to-let properties in the area is increasing, and with the average house price in the UK sitting at £288,000 Bradford has some of the lowest housing prices in the country with a lower range of £60,400. Making this an opportunity that investors do not want to miss. If you’re thinking about entering the buy-to-let property market, we encourage you to consider Bradford neighbourhoods as part of your portfolio. Keep reading as we explain why this location offers great investment returns for landlords.

Is buy-to-let a good investment?

Buy-to-let properties can be a good investment for those looking to make extra income. Of course, no investment is without risk but there are some steps you can take to minimise the chance of any losses. This includes choosing the right area to purchase a buy-to-let property and making sure that you have the correct budget to account for any maintenance costs, upkeep, fees & taxes.

Overall, being a landlord can be an extremely rewarding experience, but it is not without its stresses. For a more detailed understanding of the process and points to consider when purchasing a buy-to-let property, you can read our beginner’s guide. However, when looking at the bigger picture we can confidently say that buy-to-let is still a good investment, as long as you choose an area that is affordable as well as profitable, and Bradford ticks both of these boxes.

Why invest in a buy-to-let property in Bradford?

In short, Bradford is an extremely affordable area with a high rental yield. The average property value sits at £58,325 where the median market rent is £600, giving an overall yield of 12.34%. Considering that 6-8% is thought of as a good rental yield, Bradford shows significant potential in the buy-to-let arena. Of course, there are other aspects to consider when choosing where to buy a property, such as transport links, amenities, and safety. As such, you’ll need to consider the specific area of Bradford in which you purchase the property in addition to the city as a whole. For example, some areas of Bradford such as Saltaire are more suited to families, whereas Ilkley may be better suited for those who like to indulge in cultural activities and attractions. This is important to bear in mind when looking at potential buy-to-let properties and the type of tenant you wish to attract.

It is also worth noting that potential investors can also benefit from the Private Sector Lettings Scheme in Bradford, which is designed to improve the supply of houses to let. This scheme will help find a tenant for your property free of charge, as well as give you a grant to upgrade your property and guarantee your rent before letting it to a tenant.

Is Bradford a good place to live?

Bradford is a thriving city full of character, opportunity and culture, with plenty of museums, natural scenery, and historic architecture. The city is currently the fifth largest metropolitan authority in England with a population of 534,000, a figure which is only expected to grow. The city is also a relatively safe place to live and has a number of educational facilities and amenities which makes it an attractive choice for families. Additionally, the city has excellent rail, bus, and car links to the nearby cities of Leeds and Manchester, which is a selling point for young professionals and couples looking to rent. Bradford Council is continuing to look for growth and investment opportunities to help regenerate the region, including applying to be named the City of Culture 2025, such a proactive approach to achieving funding will only increase satisfaction ratings and make the city more attractive to renters.

With plenty on offer and easy commuter links, it is clear to see that Bradford is a good place to live attracting a diverse range of people from families to young couples, single professionals, and students. This fast-growing city is constantly developing, making it a desirable place to live and with such high rental yields, this attracts a number of seasoned investors.

What is the cost of living in Bradford?

Bradford is one of the more affordable areas to live in the UK and offers cheaper living than the closeby cities of Leeds and Manchester. Bradford is affordable thanks to its industrial heritage with much of the local economy taking roots in textiles and manufacturing. The economy here is prosperous and is expected to grow by 25% over the next ten years. Despite the long history of industrialism, Bradford still has plenty of scenic green spaces and historic architecture as well as a myriad of things to do. To understand more about the cost of living, we can take a look at the average monthly spend. The average spend for a family of four is estimated to be £2278.20 without rent, whereas the average spend for a single person is £675.30. To help put these figures into perspective, this is 74.8% lower than in London.

With all of the above points considered, it comes as no surprise that the rental market in Bradford is strong, with a demand that struggles to keep up with supply. Landlords who choose to incorporate buy-to-let properties in Bradford in their portfolio will have no issue finding tenants and are likely to see an excellent return on their investment. One example of this would be the terraced house on 22 Rathmell Street, which generates a rental income of £15,600 per annum, a yield of 14.8%.

Average yields and property values in Bradford neighbourhoods

To give a clearer picture of the rental market in Bradford, the table below offers uses data from Property Data UK and gives insight into the different areas of the city, giving the lowest average price range and its respective rental yield. The average house price would be dependent on the area, for example, Shipley in North Bradford has an average property value of £212,000 and a rental yield of 4%, therefore it’s important to undertake further research into potential catchment areas.

Bradford AreaLowest avg. property valueAvg. Rental Yield
City Centre£60,4008% BD1 (6% BD3)
North Bradford£55,0004%
East Bradford£110,0004%
South Bradford£134,0004%
West Bradford£110,0004%

Find a buy-to-let property in Bradford with SDL Properties 

With supply outstripping demand, landlords and investors are likely to turn their attention to Bradford to expand their current portfolio. If you’re looking to do the same, we currently have a number of properties available in the area which can be purchased by auction. 

Alternatively, this could be a profitable time to sell your Bradford property if you’re a current resident or landlord looking to make changes to your existing property portfolio. If you have any questions about the auction process for either buying or selling, do not hesitate to contact a member of our team who will be happy to assist.