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Stoke on Trent – The home of ceramics, Robbie Williams, Water World Alton Towers and some of the best employment growth rates in the UK (Jan 2020). Employment growth often means rental growth but let’s take a closer look at Stoke-on-Trent and if it’s a good place to invest in property.
You only have to take one look at the property market in SToke-on-Trent to realise that house prices are pretty reasonable and with a little digging it’s easy to see that rental yields are pretty goods considering how cheap the houses are. Here are some examples on properties that are currently for sale and advertised on rightmove.co.uk within the ST postcode area.
Could Stoke-on-Trent Be The Number One Buy-To-Let Location in The UK?
Stoke managed to get itself a bad reputation over the past decade and with job losses and increased poverty levels along with overseas migration into the areas it seems to have lost itself somewhat. Thankfully it remembered who it was and that it was once a great ceramic pottery hub and is home to some now very on trend industrial style housing options. In recent years, thanks to an increase in employment opportunities the area has seen a growth in the rental property market and with house prices still to this day being as low as £15k for a 2 bed property it’s not difficult to understand why investors are now flocking to this area. As it further develops and with more local investment and new tenants and homeowners coming into the area in search of cheaper living options will actually only increase the value of these homes in the long run and you could bag yourself an excellent property investment in the area.
A study conducted by Property Partner, found that in early 2020 that Stoke-on-Trent landlords earnt a higher rental yield from buy to let properties. Stoke-on-Trent looks set to continue on this path meaning investors will most certainly get a great ROI when buying property in S-O-T.
House costs, local incomes and rental returns were taken into account in the study, and the findings were definitive in favour of The Potteries. In addition, the North has a real upper hand against the South in general. In the North, the ten best sites can all be identified and, conversely, in the South, the worst are located. More evidence, if necessary, that there is a great deal of division between the North and the South. This time, though, it has nothing to do with history, politics, or living conditions, and this time it is the North that has come out on top.
It is No Longer On The List of ‘The 10 Worst Places To Live in The UK’
Yes, it’s sad but true, this beautiful party of the UK did lose it’s way and it was voted for as being one of the top 10 worst locations to live in the UK. Because of the fast occurring changes and degradation of living conditions and income in the area it managed to get itself a bad reputation and often people were too quick to judge the people in the area but that’s all changing and it’s only going to get better.
We’re not going to pretend, for a minute, that Stoke-on-Trent does not have pockets of depravity. Many places in the UK do. After all, the country is in the midst of a housing crisis, and more people are sleeping rough than ever before. But Stoke-on-Trent is definitely seeking to free itself from the shackles of its past downfall.
Stoke is now rife with investment, which we’ll explore in more depth later. Not only that, it has been considered the ‘capital of the billion-pound start-up’ because of its very desirable geographical position. Bet 365 and JCB are examples of big success stories that have flourished in our humble setting. And huge global players such as Amazon, Jaguar Land Rover and Vodafone are investing millions of pounds, generating much-needed employment in the area.
It was voted the second-best place to start a business in 2016
Quality Formations, a London-based company formation service, awarded Stoke-on-Trent the second-best place to start a business in 2016 from a list of 69 UK cities. The reason for the accomplishment was primarily due to the assistance that is available from organizations in the region, but also because Stoke provides inexpensive office space. In 2013, over 4,000 new businesses were launched in the area. Another statistic that is surprising but extremely encouraging.
It’s Getting A Lot of Investment
Statistics from local business support and investment experts, Make it Stoke-on-Trent and Staffordshire, state that in the next five years in the form of office, industrial and retail projects, more than £ 2 billion will be invested in the region. There are some major multinational players, as we highlighted earlier, who have chosen to make Stoke-on-Trent their home. And a huge number of jobs are being created across Staffordshire by ongoing investment from those big hitters:
- JCB, 2,500 jobs have been announced by world leaders in construction machinery.
- Jaguar Land Rover, the largest car manufacturer in the UK, will create 1,400 jobs at its new engine plant.
- Amazon, the largest online retailer in the world, has announced 1,200 jobs at a new distribution plant near Bet 365 Stadium in Trentham Lakes.
Job creation is the natural consequence of investment, of course. But here at HIM Group, we have the first-hand experience that people need a place to live—great news for property investors—the natural by-product of job creation, especially at local distribution centres.
The ‘Master Plan’ For Stoke-on-Trent is Finally Shaping Up
An ambitious plan is beginning to take shape, initially devised and set in motion back in 2011. What just six years ago seemed a little adventurous is now very much in progress.
Councilman Daniel Jellyman, Stoke-on-Trent Council’s cabinet member for regeneration, transportation and heritage, recently affirmed, “Stoke-on-Trent is changing rapidly, and the city now has real confidence.”
Major new developments described in the Master Plan are starting to change the horizon across the Potteries. In the heart of Stoke Center and on the site of the old Victoria Ground, new housing is being built around the City (the former home of Stoke City Football Club). At key sites across the area, major distribution centres have had the green light. But perhaps the most exciting development is going to take place at Stoke train station and the surrounding area, which in the coming years will be the subject of a major transformation. These changes would reflect the expected growth in rail travel, the effect of the new HS2 on the area, and the growth of the City itself.
A landmark footbridge that will cross the adjacent A500 into the former Spode Works is included in the plan for the development of this area. This story, which once flourished with the development of pottery, is set to be revived as the core of the town centre of Stoke. It will include retail units, a hotel and offices, as well as one of just 26 enterprise zones nationwide, the extremely impressive Ceramic Valley Enterprise Zone. This excellent initiative will help new enterprises and a broad range of light industries, as well as enhance Stoke as the world’s ceramic capital.
In addition to the enormously impressive improvements that are already taking shape across the area, it’s all really optimistic. For example, the new iC5 Innovation Centre at Keele University will draw high-tech research and development companies to a thriving business park; and phase two of the dynamic Smithfield project, with its hotel, retail and office space, will create over 4,000 jobs in the Hanley area.
But what does all this mean for property investment in the area?
Well, it’s fair that growth and regeneration will revitalize the economy, create jobs and bring more people into the City. And those people are going to need to live somewhere. We have a proven track record of sourcing, refurbishing and letting property. Many of our landlords live hundreds of miles from Stoke-on-Trent, but HIM has been selected for the stress-free approach we offer for property investment and management.
Property Investment Opportunities
2 Bedroom Terraced House In Woolrich Street, Stoke-on-Trent, ST6 3PQ – Guide Price £15,000
5 Bedroom Detached House Development – Former Church Building – ST1 3DA – £128,000
Property Investment Opportunities In Nearby Newcastle Under Lyme
Newcastle Under Lyme is a great place to invest in stoke. Investment property here is in abundance and there are great transport links into the city itself for work and school. If you are looking to invest in good looking, good priced properties and get a great house for your money, gain a long term tennant and buy a property in a decent location then you should definitely consider this area.
3 Bedroom Semi-Detached House Newcastle Under Lyme
This 3 bedroom semi-detached property has the potential for a driveway to the front. It has a back garden and is of ample size. With the guide price being only £60,000 and similar renovated houses selling in excess of £150k in the same area it would be silly to miss out on such a fantastic investment opportunity.