Is Bradford a good choice for buy-to-let investments?

Since the Government introduced a temporary reduction to stamp duty rates in July 2020, there have been a huge number of property transactions and a significant increase in house prices akin to the early 2010s when recovery from the 2008 financial crash was buoyed by investors taking advantage of lower property prices.

Now that a stamp duty nil rate of £250,000 remains in place until 30 September 2021 and the Government have also introduced a mortgage guarantee scheme on high loan to value (LTV) mortgages (of over 90% in particular), the buy-to-let market is increasingly popular for investors looking for a solid bricks and mortar investment.

But when it comes to investing in property for someone else to live in, choosing a location which will offer a decent rental return and appeal to a wide range of tenants whilst still keeping the upfront purchase price of the property low can be tricky.

One such location which is a good option for buy-to-let investments in today’s housing market is the city of Bradford in West Yorkshire.

Whilst many Landlords may look to the larger neighbouring city of Leeds when it comes to property investment, Bradford – with great commuter links, a significant workforce in its own right, a large student population and a strong rental market – should not be overlooked when it comes to making a buy-to-let investment.

But it is not just the range of tenants and healthy rental returns on offer in Bradford that makes the city a good choice for buy-to-let property investors.

When it comes to lifestyle, there are also plenty of retail and leisure amenities locally including the contemporary Broadway Shopping Mall with over 90 shops and eateries, Airobounce Trampoline Park and the range of entertainment venues on offer at the Leisure Exchange complex to name but a few.  

The city benefits from stunning countryside on the doorstep too in the shape of the Peak District National Park, the Forest of Bowland AONB, the Yorkshire Dales National Park and Nidderdale AONB and 44 parks and outdoor spaces like City Park – with its stunning Mirror Pool – Bowling Park and Horton Park within the town itself.

Bradford also offers excellent road links for commuters to nearby Leeds (in 30 minutes), Halifax, Wakefield and Harrogate via the A647, A650 and A658 and the rest of the UK road network via the M606 and its link to the M62. Manchester is around 55 minutes and 38 miles away.

The city is home to two train stations as well, Bradford Interchange with services to Leeds, Halifax, Huddersfield, Manchester Victoria, Blackpool and London King's Cross and Bradford Forster Square with services to Skipton, Ilkley and Leeds amongst others.

For families, there are a range of state, academy and independent school options such as co-educational all through school Bradford Grammar School plus a range of family friendly activities and facilities. The city is even in the running for UK City of Culture 2025 thanks to cultural amenities like the National Science and Media Museum, the Alhambra Theatre and the Salts Mill and its status as the first UNESCO City of Film and home of cultural icons the Brontë sisters, JB Priestley and David Hockney.

Bradford is also home to the eponymous University of Bradford with over 11,000 students on the hunt for accommodation locally, particularly in student haunts such as Clayton, Frizinghall, Great Horton and Heaton plus the city centre itself.

Perhaps most importantly, Bradford also has a significant amount of affordable housing options. Indeed, the average property price in Bradford over the past year was £143,169. Significantly more affordable than the national average of £254,624, the Yorkshire and Humber region (£222,377) and West Yorkshire (£216,755) overall. Especially pricey hotspots Scarcroft on the outskirts of Leeds (£696,320), Huby (£564,375) and Ilkley (£484,709).  Properties within Leeds itself also had a higher overall average price of £229,703 in the last 12 months.

And when it comes to the types of property on offer, the average price you would expect to pay for a terraced house was £107,499, with semi-detached properties costing £146,000 and detached properties around £264,000 over the last 12 months. Of course, if you are willing to get your hands dirty and do a bit of refurbishment you could pick up a property bargain for a lot less, making Bradford a great proposition for buy-to-let investments.