High Yield Buy-to-Let Property in Doncaster – Should I Invest?

The property market in the north of England has been turning the heads of buy-to-let property investors for some time now. The combination of high rental demand, low property values and region-wide redevelopment is transforming the Northern Powerhouse into a buy-to-let investment goldmine.

While major northern cities such as Manchester, Leeds and Lincoln have been a key focus of Northern Powerhouse property investors, smaller cities and towns in the region also present a massive opportunity – one which many investors are missing out on.

Doncaster is one of these places, brimming with great untapped investment opportunities. Set to be transformed over the coming years into a thriving business and university hub, the town’s redevelopment masterplan states that Doncaster will: “contribute to Sheffield City Region’s growing economic offering, putting it firmly on the map among other Northern Powerhouse cities.”

For investors looking for a unique opportunity, Doncaster is exactly that.


Ambitious town centre redevelopment plan

Doncaster’s redevelopment masterplan clearly outlines the town’s potential. It states: “very few places in the UK come close to us in terms of delivering major regeneration projects over the last ten years.”

This is very true. Much of the £20+ million funding for Doncaster’s redevelopment plans has already been approved and is in place, and will cover the redevelopment of the town centre, including the train station, waterfront, business district, market place and retail core.

“Our ambition is bold but realistic,” says the town council on the doncaster.gov.uk website, “It reflects a clear sense of direction and promotes a growing economic contribution into Sheffield City Region and beyond as part of the Northern Powerhouse.”

The ambitious plans also highlight how the town will “benefit from enhanced green spaces and waterways that will create a better setting for visitors, investments and town heritage.” In addition, the planned redevelopment of the cultural quarter are set to “reinforce the retail and leisure core through better links and public space improvements.”


Remarkably low property prices in Doncaster

Property in Doncaster is valued well below the national average. According to property market analysis company, Dataloft, a flat or apartment in Doncaster is currently worth on average £73,035 – 65.4% less than the England and Wales average of £211,163. This is competitive even in the wider region of Yorkshire & Humber where on average a flat or apartment will set you back by £112,906.

Doncaster property in general costs 16.5% less than in greater Yorkshire & Humber. These lower than average property prices mean Northern Powerhouse investors can add to their property portfolios with either small mortgages or low investments, making the town an incredibly low risk opportunity.


High yields & rental demand

As well as benefitting from low property prices, Doncaster also shows huge potential when it comes to rental demand and high yields.

According to Zoopla, average rent in Doncaster varies from £400 – £580 PCM depending on the property and the number of bedrooms. Combined with lower than average purchase prices, these rental stats make for some very attractive yields.

The bigger picture looks even rosier. Much of the town’s redevelopment focuses on attracting businesses and students to the town, suggesting that in the long run, both rental demand and long-term yields will become even more attractive.


A unique cultural offering

With its markets, horse racing, railways and architecture, Doncaster already benefits from a rich cultural background. However, as part of the town centre’s redevelopment, many of these areas will be enhanced even further.

This includes the addition of a brand-new £14 million combined museum, library and archive buildings. This project is set to transform Doncaster’s landmark 1960s’ girls school building into a 21st century marvel.

The redevelopment will also build on the success of Doncaster’s famous markets, deepening their ambitions and functions, and shining a light on the town’s tourism appeal. The redevelopment masterplan states that: “the aims are to ensure the area is vibrant not just on current market days, but all week long.”

Lastly, plans for what is described as a “stunning marina” will take advantage of Doncaster’s waterside location, creating a bounty of attractive retail and leisure uses for the area. This marina will be appealing to locals as well as attracting those from further afield, and will likely play a part in increasing rental demand throughout the town.


Excellent transport links

Doncaster’s excellent transport links make it especially attractive to investors – particularly its location on the East Coast Mainline. Combined with the town’s redevelopment, this connectivity will play a key role in bringing new businesses, students and workers into Doncaster.

The train station forecourt itself will also undergo a huge makeover, with aims to enhance the first impression Doncaster makes on its visitors. Set to be carried out in partnership with Virgin Trains and South Yorkshire Passenger Transport Executive (SYPTE), the forecourt improvements also hope to attract investment and jobs into the region.


Up and coming Business District

Becoming a crucial business hub in the north is a key part of how the town plans to expand and grow. Doncaster’s redevelopment masterplan states that it plans to “rebrand the town as a location of choice for regional businesses,” and “ensure the centre is a focus for business and enterprise.”

Recent developments have already taken place in the “business district” area, such as the new £20m Civic offices and the £22m Cast performance venue. Wider development hopes to transform the area into the “corporate face of Doncaster,” with a key focus on new office investment. With a predicted influx of new businesses coming into the town, Doncaster’s rental demand is likely to increase over the coming years.


Growing University and student hub

Doncaster college already plays a pivotal role in the town’s education sector, and there are plans to enhance this offering even further. As part of their 2015-18 strategy refresh, the college stated: “Our vision continues to highlight the College`s critical role in transforming lives and improving the local economy.”

Key areas of growth for the college include further education, higher education and international students – key areas which are likely to contribute to an influx of students living and studying in the town.

Education also forms a key element of the redevelopment masterplan, with University and Research and Development facilities stated as part of the overall growth.


Property Investment in Doncaster

At Fitzwilliam Capital Partners, we’re always looking for unique, high yield opportunities for our clients. Once identified, we design and build high quality properties ourselves, selling them directly onto property investors at competitive rates.

Our Doncaster property represents one of these opportunities. The Library by Fitzwilliam is a luxury development, located just six miles to the south east of Doncaster town centre.

The one bedroom apartments start at just £70,000 with a predicted rental income of around £425, leaving investors with the unique opportunity to capitalise on 7%+ yields.

Find out more about Doncaster and the unique opportunity The Library by Fitzwilliam offers today. Get in touch with Hayley Moore on 0161 641 3100 or email us at hello@fitzwilliam-cp.com.