Buy To Let's in the North West
OLDHAM BUY TO LET GUIDE
Exploring the best rental yields & opportunities in Oldham
Buy To Let's in the North West
Oldham Buy To Let guide
Exploring the best rental yields & opportunities in Oldham
Located just a few miles from Manchester, Oldham has some of the most competitively priced properties in the UK. The average price is around £189,900 – £198,000, which is significantly less than the UK average of £284,600. This is what makes Oldham a great opportunity for buy-to-let investors and first-time buyers.
Aside from its affordability, Oldham is undergoing several regeneration projects. For example, the “Creating a Better Place” initiative aims to invest £285 million into housing, jobs, and infrastructure. It is connected through Manchester’s Metrolink tram system and is close to most motorways, making it very appealing to commuters.
As for the rental demand in Oldham, it also appears to be growing. Compared to previous years, rent has been increasing considerably due to the imbalance in supply and demand in the UK’s rental market. Current rental yields are around 5.35% on average, making Oldham a great area for landlords.
Oldham’s combination of low entry costs, growing demand, and regeneration efforts makes it a hidden gem for 2024 investors in the UK property market. However, does that mean that you should also invest in Oldham? Let’s discuss that.
Why invest in Oldham?
Since Oldham is close to the city centre of Manchester, it is a prime location for commuters. It has many excellent transport links and is near the M60 and M62 motorways. There is even a direct tram service via Metrolink to Manchester and Rochdale. This makes Oldham easily accessible, thus making it more attractive to tenants working in Greater Manchester (population of approximately 2.5 million).
Oldham offers some of the most affordable property prices in Greater Manchester and the UK. As previously mentioned, the average house prices are around £189,900 – £198,000, which is below the UK average. The most common house types are terraced homes, which are often the first choice for first-time investors, with prices averaging around £154,200.
As for rental properties, the average rent in Oldham is around £845 per month. The area offers solid rental yields with an average of 5.35%. That said, rents in the area have risen in the past few years due to increased demand.
The city is home to a vibrant community with a mix of urban and rural living options. It has undergone significant regeneration, with projects like the new Odeon cinema, leisure centre, and restaurant complex. In the future, there are plans to include a Cultural Quarter with new arts and a heritage centre.
Oldham already has many cultural attractions like the Oldham Coliseum Theatre and Gallery Oldham, not to mention that it’s close to the Pennines and the Peak District. Although the city has a history of post-industrial decline, it offers a range of thriving industries such as advanced manufacturing, healthcare, and logistics. There are also major employers, like the Royal Oldham Hospital and Ferranti Technologies, that provide numerous job opportunities. More job opportunities mean more workers, which is beneficial for the rental market.
Is Oldham good for Buy To Lets?
Simply put, yes. Oldham is still considered a good location for buy-to-let property investments in 2024. It is especially attractive to those seeking affordable entry points with strong rental yields within the Greater Manchester area. Here is what you need to know:
It’s affordable
The average property prices in Oldham are significantly lower than the UK national average. With lower property costs, investors can more easily enter the market with less capital. This makes Oldham appealing to both new and experienced landlords.
Rental yields
With average rents being around £846 per month, Oldham offers rental yields with an average of 5.35%. This is quite competitive when compared to other areas in Greater Manchester. Furthermore, the increase in demand for rental housing is driven by the housing shortage and growing population. This all contributes to making the buy-to-let Oldham market much more stable.
Demand for tenants
Oldham is popular with commuters since it is close to Manchester. It has good transport links, including the Metrolink tram connections and motorway access. Oldham attracts families and professionals who are usually seeking housing within Greater Manchester.
Potential for regeneration and growth
With significant regeneration projects, Oldham has become quite an attractive area. There have been new leisure facilities, cinemas, restaurants, and more. All of these improvements enhance the city’s liveability and increase property values over time.
Not to mention that the borough combines urban and rural living, which appeals to a broader demographic of tenants.
Potential challenges for investors
Although Oldham has seen regeneration over the years, it still faces some post-industrial economic challenges. Investors should aim to target areas with high tenant demand and proximity to amenities and transport links.
Oldham is known as one of the more affordable areas in Manchester, which is why the competition among investors will most certainly increase and drive prices up. Keep that in mind!
How much do properties cost in Oldham?
As we already know from the information above, the average property price in Oldham is below the national average of £344,000 and Manchester’s average of £232,000. But how much do properties in Oldham cost exactly?
Well, average property prices in Oldham are around £183,000, with homes purchased with mortgages being a bit higher, around £205,000.
The reason Oldham is great for investors is that you can still find properties that are even below these averages. For example, some terraced homes in Oldham are listed for as low as £42,000, which is the perfect choice for budget-conscious BTL investors as well as those interested in maximising rental yields.
However, Oldham’s market is experiencing some of the fastest-moving transactions in the UK, so you better make the purchase now. Who knows how long these low prices may persist?
What's the rental demand like in Oldham?
With a buoyant rental market, Oldham is an attractive option for BTL landlords. This way, you can cater to the local market or tenants commuting to Greater Manchester and its surrounding areas.
According to Home.co.uk’s Oldham Market Rent Summary, the average monthly rent is around £1,022. However, this depends on the type of homes you wish to rent. Here is the breakdown of the average rents for different property types:
- £600 – £650 PCM for one-bedroom properties
- £850 – £900 PCM for two-bedroom properties
- £1,000 – £1,200 PCM for three-bedroom properties
- £1,300 – £1,500 PCM for four-bedroom properties
As for yields, it is reported that the average gross rental yields in Oldham will vary based on location, with the central areas yielding around 4% – 5%. Certain popular spots and HMOs can even achieve higher returns. If you wish to set up or buy a shared house or HMO in the Oldham local authority area, you must consider Oldham Council’s HMO and selective licensing schemes. Selective licensing in some areas will require landlords to register all rental housing, ensuring quality and compliance.
What are the best BTL areas in Oldham?
The best BTL areas in Oldham will depend on your budget, target tenants, and investment goals. Here are a couple of suggestions you can consider:
This is an ideal area for affordable housing and properties with a strong rental demand. Central Oldham is mainly popular among young professionals and families since it is close to transport links, schools, and all good amenities.
Close to Manchester city centre and the M60 motorway, this area is popular with commuters. Failsworth appeals to professionals working in Manchester who enjoy a suburban lifestyle.
With a suburban appeal and a mix of traditional terraced homes and modern houses, this is also a popular choice with families. It is close to schools and parks, with strong transport links.
Known for offering a quieter lifestyle, Royton is a great choice for those who prefer tranquillity, like older renters. It has good schools and local amenities and presents a great opportunity for long-term rentals.
Currently undergoing regeneration, it is becoming a more attractive area for investors seeking capital appreciation. It also has all the necessary commuter roads.
Is Oldham a good place to invest in property?
Oldham is an appealing location for property investment in 2024. It has affordable property prices, good rental demands, and excellent transport links. Areas like Royton, Shaw, and Failsworth offer good yields, and they are quite popular with families and commuters. Since Oldham has ongoing regeneration projects and is close to Manchester, it is in a great position for both rental income and capital growth.
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No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
WHY INVEST WITH US?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
