Norwich Buy-to-Let Guide

Norwich is situated in the east of England. This area has seen substantial rental growth of 8.10% over 12-month periods. However, this number falls short of the UK annual rental growth of 10.30%.

Home.co.uk puts the average Norwich rental income at £1,449. This is one of the highest out of the major UK cities. For instance, Liverpool, Nottingham, Newcastle and Leeds all have cheaper rents.

The Homelet Rental Index puts the average UK rental income at £1,243.

This makes Norwich rents 15.3% more expensive than the national average. The city also has a better average yield than the rest of the country. Our statistics put Norwich’s average rental yield at 7.3%, trumping the UK’s 5.19% average yield.

Investors have the best chance at capital growth if they conduct thorough research into the local area. In this section, we’ll look at yields and property prices in different localities around Norwich.

All property prices in this section are courtesy of Zoopla.

Norwich City Centre

Norwich appeals to professionals and students. Properties in the area include new-build apartments, traditional house conversion and terraced accommodation.

The inner suburbs include Thorpe Hamlet, Friars Quay and Norwich Over The Water. These areas combine city living with nearby amenities. Norwich Over the Water is on the other side of the River Wensum but has excellent transport links to the city centre.

Average Property Prices in Norwich City Centre

The NR1 and NR2 postcodes have average property values of £234,459 and £322,455 respectively.

Average Rental Yields in Norwich City Centre

NR1 yields are 4.8% on average. NR2 yields are 3.9%

Norwich’s northwest areas include:

• Heigham Grove
• Costessey
• New Costessey
• Bowthorpe
• Helleson
• Upper Hellesdon

Drayton and Teverham are also nearby but considered separate settlements.

Bowthrope boasts its own shops and amenities. The Bowthorpe Industrial Estate is home to numerous businesses.

As you’d expect, the villages are more expensive than the areas closer to the centre of Norwich.

Average Property Prices in North West Norwich

NR4 average property prices are the most expensive in the area, averaging £404,128. NR8 properties average £321,162. NR5 properties are much cheaper, costing £260,118 on average.

Average Rental Yields in North West Norwich

NR4 yields are 4.5%. NR5 yields are a healthy 8.6%, thanks to an average rental price of £1,856 pcm. NR8 yields are 4.6%.

Areas in this part of Norwich include:

• Mount Pleasant
• Colney
• Eaton
• Earlham
• Cringleford

They have become popular with tenants due to the access to the A11 and A140 roads, as well as access to the city centre. You can also find the University of East Anglia, Norwich Research Park Norfolk and Norwich University Hospital in this area.

These localities appeal to professionals and students. The Golden Triangle (Unthank Road, Newmarket Road, Earlham Road) is one of Norfolk’s most popular residential areas.

Average Property Prices in South West Norwich

As previously discussed, the NR2 and NR4 postcodes have an average price of £322,455 and £404,128.

Average Rental Yields in South West Norwich

Yields are usually around 3.9% and 4.5%.

Investing in newly built properties represents a burgeoning trend in the UK real estate market, capturing the interest of both tenants and landlords. With these properties being recently constructed, there is minimal requirement for renovation before they are market-ready. This translates into quicker occupancy for tenants and a speedier turnaround on rental returns for investors.

As demand consistently outpaces supply, the necessity for new housing opportunities has become increasingly pronounced. In an effort to address this, Norwich Council has ramped up new housing development in the region. The work also strives to ensure that every resident has access to a decent home that is both affordable and efficient to run, with the council working in partnership with a range of organisations to increase the provision of sustainable housing.

Given current market trends, opting for new-build properties could be advantageous for investors in the coming years.

Although Norwich offers a range of new-build investment opportunities, larger urban cities such as Liverpool and Manchester may provide broader investment prospects and potentially greater capital appreciation.

So, is Norwich one of the best UK buy-to-let locations?

As mentioned, the area has experienced a decline in house prices over the last 12 months. The rent prices are 15% higher than the national average, which may deter some tenants. In addition, rental growth is below the national average. The rental yield hovers around 7%, which is decent but unremarkable.

If you are looking to grow capital via buy-to-let investment, focus your property search on the North West. Liverpool and Manchester both offer better yields than Norwich (7.77% and 9.12% respectively). In Liverpool’s case, on average, properties are also much cheaper (£177,628). Alongside this, property for sale in Liverpool City Centre typically offers more adorable rents and fantastic business opportunities.

Sure, Norwich has good transport links to prominent cities in the south. But the North West offers comparable rental yields for a cheaper investment. Outside of Liverpool, the best buy-to-let areas in Manchester in 2024 are also usually more enticing to students and professionals. This is due to the burgeoning job opportunities and regeneration projects. Many quality universities are also available in the area.

Delve deeper into the buy-to-let market with RWinvest’s guide to investment property available in Stockport!