Top 10 Best Buy-To-Let Areas In Sheffield

Top 10 Best Buy-To-Let Areas In Sheffield

Thanks to its unique history, thriving events calendar and convenient location in South Yorkshire, Sheffield is quickly becoming one of the prime locations for buy-to-let investors in the north of England.

With that in mind, we’ve analysed data from 46 postcodes in the Sheffield area to shine a light on the most lucrative investment opportunities and postcodes with the highest rental yields. This should prove valuable information for anyone considering property investment in Sheffield or the surrounding areas, such as Barnsley and Rotherham.

Why is Sheffield a good city for a buy-to-let?

Sheffield is a city on the rise. Over the past 15-20 years, it has gradually reinvented its image from the ‘Steel City’ into a bustling hub for technology and sports-related business.

The city has two universities – the University of Sheffield and Sheffield Hallam University – which together attract north of 60,000 students every year. Alongside this, the pulse of the local economy is fuelled even further by a thriving population of young professionals, which helps to keep rental properties in high demand throughout the year, even out of term time.

Numerous multi-million-pound regeneration projects have been undertaken by the local council in recent years, including the redevelopment of the historic areas of Castlegate, Attercliffe and Angel Street. Investment in traffic-free public spaces has also given pedestrians and cyclists access to safe, pleasant routes to and from the city centre. These measures are creating the opportunity for more outdoor events, which is expected to attract more and more investment in the city.

The average rental yield in Sheffield is currently 4.2% as of May 2023, comfortably higher than the national average of 3.6%. House prices are accessible to most investors, commanding an average price of £233,372. Compare that to Manchester (£283,355) and London (£669,429), and it’s easy to see why many investors are turning their attention to South Yorkshire.

Sheffield also has the benefit of quick connections to other major cities, such as London via the M1, Leeds via the M18 and Manchester via the M67.

Top 10 Sheffield Postcodes Based On Rental Yields

So where should you invest in buy-to-let in Sheffield? Using industry data on postcode performance, we’ve identified ten Sheffield property investment hotspots for buy-to-lets based on rental yield. Here are the results:

Postcode Avg asking rent (pm) Avg yield
S3 £744 7.10%
S5 £759 6.70%
S1 £638 5.20%
S2 £646 4.90%
S12 £768 4.90%
S70 £616 4.90%
S61 £628 4.70%
S65 £650 4.60%
S73 £653 4.60%
S71 £663 4.40%
  1. S3 – Broomhall, Burngreave, Kelham Island, Neepsend, Netherthorpe

    With comparatively low average property prices and a high rental yield of 7.1%, S3 ranks as the best buy-to-let location in Sheffield in 2023. The area covers several popular neighbourhoods, most of which are areas of urban regeneration with close proximity to the city centre.

    The postcode boasts a range of different types of property investment opportunities, including both modern apartments and more traditional terraced houses. The bustling bar and restaurant scene attracts young professionals and students, making it a prime destination for city centre living and a great choice for student property investment in Sheffield.

  2. S5 – Park Springs, Fir Vale, Shiregreen, Ecclesfield

    Similar to S3, the S5 area offers plenty of affordable buy-to-let properties, mainly terraced houses and modern apartments. It also has good transport links and bus routes directly to the city centre.

    Shops, parks and schools are all in close vicinity, making it a convenient and attractive option for buy-to-let investors targeting families. The average property price of £136,647 makes it accessible for new and experienced investors alike, and the 38% increase in house prices shows just how much demand has grown over the past five years.

  3. S1 – Sheffield city centre

    Sheffield’s S1 postcode covers the majority of the city centre. Many of the investment opportunities are apartments, though there’s a healthy mixture of budget options and high-end developments that cater to everyone from students to families. This makes S1 an accessible and attractive choice for landlords with different goals.

    The city centre itself has undergone a series of regeneration projects in recent years, all of which have helped to boost rental demand. Areas such as the Peace Gardens and the Moor – the city’s main high street – attract thousands of people every day. Sheffield’s historic theatres, the Crucible and the Lyceum, are also situated in the centre and form the cultural heartbeat of the city.

    The area is particularly popular with professionals who work in the city centre, but also those who regularly commute to other cities given its proximity to Sheffield train station.

  4. S2 – Heeley, Highfield, Norfolk Park, Park Hill

    Situated in South East Sheffield, the S2 area offers fantastic green spaces and parks that play host to several festivals and events throughout the year.

    There are also plenty of excellent local amenities, cafes, restaurants and shops in the area, as well as a large retail park which houses a wide range of high street brands, so it’s easy to see why it has become such a popular option for families.

    Residential property prices here have risen by 30% over the past five years and currently offer landlords a 5% rental yield per year.

  5. S12 – Birley, Gleadless, Frecheville, Ridgeway

    S12 offers everything from top restaurants to historic buildings full of character. As well as being within easy reach of the centre and shops at Crystal Peaks, it’s also close to the surrounding countryside and Peak District National Park, which is perfect for those who wish to escape the noise of the city from time to time.

    Here you’ll find a blend of Victorian houses, grade-listed buildings and more modern developments. Although S12 offers a healthy rental yield of 4.9%, it’s worth bearing in mind that average house prices in these neighbourhoods are higher than any other postcode in the top 10.

  6. S70 – Barnsley, Worsbrough

    The up-and-coming area of S70 lies roughly 30-40 minutes north of Sheffield city centre, covering the south of Barnsley and the nearby rural village of Worsbrough. Residents here have easy access to notable landmarks like Houndhill, Wigfield Farm, Worsbrough Mill and Worsbrough Reservoir.

    House prices in S70 – £150,431 on average – are attractive to investors looking to make their money go a little further when investing in a larger property. Rental property here is growing in demand, and, as with S12, the annual yield of 4.9% is an attractive prospect for landlords.

  7. S61 – Rotherham, Kimberworth

    Rotherham is located just 20 minutes from central Sheffield. Its S61 postcode covers most of Kimberworth, a historic area that’s mentioned in the 1086 Domesday Book. These days, Kimberworth offers a range of buy-to-let opportunities, including terraced houses and apartments. It’s a popular residential area that offers a good source of rental income for buy-to-let landlords.

    The average house price in S61 is £160,373, sitting in the middle of our top 10 in terms of cost. It’s popular among families and first-time buyers, with good transport links to the city centre and a range of amenities, including shops, supermarkets, and schools. It’s also located near the Meadowhall shopping centre, one of the largest in the UK.

  8. S65 – Rotherham, East Dene, Thrybergh

    House price growth in S65 is stronger (43% over the past five years) than any other Sheffield postcode in our top 10. It covers the east side of Rotherham, including East Dene, Dalton and the village of Thrybergh.

    Despite the rise in prices, the area remains a solid option for buy-to-let investors who wish to pay a little more to capitalise on the high rental demand for terraced houses and flats and expected continued price growth. S65 has reliable transport links to Rotherham town centre, shops, supermarkets, and schools.

  9. S73 – Wombwell, Darfield

    S73 offers a range of fantastic investment property options, including terraced houses and semi-detached homes. The area is popular due to its good transport links, particularly the train station in Wombwell, which connects residents to both Sheffield to the south and Barnsley to the north.

    Nearby, you’ll find the picturesque Wentworth village and Wentworth Woodhouse, a historic country house and popular tourist attraction. Despite house prices being on the more expensive end of the scale, the area is full of character and charm, which attracts families and Sheffield property investors alike.

  10. S71 – Royston, Carlton, Monk Bretton

    Although S71 has the highest average house price – £181,872 – on our list, its close proximity to Barnsley town centre and Wentworth Castle Gardens still makes the area a good option for investors exploring the Sheffield property market.

    The main types of properties in S71 are terraced houses and apartments. Even so, the area boasts an incredible history dating back hundreds of years, epitomised in Royston’s parish church of St. John the Baptist, built in 1234.

    Considering investing in a buy-to-let property in Sheffield?

    There are many reasons why Sheffield and its surrounding areas have become a compelling option for buy-to-let landlords in recent years. Along with affordable property prices, the significant regeneration of the city and transformation into one of the UK’s most popular student destinations has led to a booming rental market which shows no signs of slowing anytime soon.

    With even further growth expected over the coming 3-5 years, now is the perfect time to consider a buy-to-let investment. Feel free to get in touch with our friendly team to discuss your options and next potential purchase.

    Note: The data in this article is an accurate representation of the Sheffield property market as of May 2023. We’ll review statistics and update this report next year, in 2024, with fresh data.

 

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