North Wales might be known for being home to one of the UK’s highest mountains – Snowdon – but it’s less well known for having some of the UK’s lowest property prices. Here’s our guide to the best areas of North Wales for property investment.
Investors looking for good value property investments won’t be disappointed when looking for an investment in North Wales. North Wales property prices are around 30% lower than the wider UK right across the board. It’s even possible to find a buy to let in North Wales from as little as £35,500 – read on to find out where.
North Wales is a diverse region. It includes Wrexham which is the fourth largest town in Wales plus the counties of Conwy, Denbighshire, Flintshire, Gwynedd and the Isle of Anglesey which are more rural.
Although it is quite sparsely populated North Wales has a population of 696,000 – more than the City of Manchester – according to Welsh Government figures. They add that North Wales has the highest employment rate, the lowest unemployment rate and the highest household income of any of the Welsh regions.
North Wales has a diverse economy too. Although agriculture and tourism are important here the more modern industries of North Wales include manufacturing, high tech. manufacturing, biotech. and financial and professional services.
The good news for property investors is there are plans to boost the economy here, which should benefit the North Wales property market. The North Wales Economic Ambition Board has joined the Welsh and UK Governments to sign a deal that could see £1 billion invested into North Wales. The programmes within the deal include projects in low carbon energy, advanced manufacturing, agriculture, tourism, land and property, skills and employment, digital connectivity, and strategic transport.
One of North Wales’ biggest assets is its beautiful scenery, including the famous Snowdon (Yr Wyddfa in Welsh), the Lleyn Peninsula, sandy beaches, impressive castles like Conwy Castle and Caernarfon Castle plus historic towns and villages. Thanks to this there is a thriving tourist economy attracting around 30 million visitors every year, and creating good demand for holiday lettings in many parts of North Wales.
More than £100 million is currently being invested into making North Wales an even more popular place to visit, which should increase tourist numbers.
North Wales also has a student accommodation market that most student property investors overlook. There are universities at Bangor, which has around 10,000 students, and Wrexham.
The average house price in the UK is currently £234,742, according to HM Land Registry figures. But the average house price in Wales is currently just £165,135.
Average house prices in the different counties of North Wales are as follows: Conwy £170,848. Denbighshire £164,062. Flintshire £174,968. Gwynedd £167,598. Isle of Anglesey £177,495. Wrexham £157,208.
While house prices in some places have been static or have even fallen recently house prices in North Wales have increased over the year. According to this report prices in Conwy rose 7.9%, prices in Anglesey rose 5.1% and prices in Wrexham rose 4.5%.
North Wales overall has good demand for rented property, but demand is different in different areas. In some places, the demand for buy-to-lets is from the local market. In other parts of North Wales, there is good demand for holiday lets or student lets.
Buy to let landlords across Wales as a whole can expect to earn £650 a month from an average rental property according to Homelet. Rents rose a healthy 5.5% over the last year.
Attractive rents but below UK average property prices mean North Wales can offer good investor yields. Average letting yields in North Wales, according to LiveYield, are as follows: Conwy 4.1%. Denbighshire 4.9%. Flintshire 4.9%. Gwynedd 3.8%. Isle of Anglesey 3.8%. Wrexham 4%. Property investors should find that student property yields and holiday property yields are much higher, of course.
Here’s our guide to property investment in some of the main towns of North Wales.
Average House Price: £157,208
Wrexham (Wrecsam in Welsh) is the biggest town in North Wales by far, and it’s growing fast. The Wrexham population is expected to grow to around 150,000 by the late 2030s.
Wrexham is becoming the economic capital of North Wales. It is home to industries like high tech. manufacturing, biotech. and financial and professional services. Wrexham Industrial Estate is one of the largest business parks in Europe with several large employers, so there are a busy jobs market and good demand for buy-to-let accommodation.
Wrexham is also a university town. Wrexham Glyndŵr University has around 6,700 students and Bangor University has a small campus in Wrexham.
Wrexham has some of the lowest average property prices in North Wales. Wrexham is also a much cheaper place to buy investment property than nearby Chester across the Border in England.
For more information about Wrexham see our article on the best areas of Wrexham to invest in buy-to-let.
Average House Price: £255,744
Bangor, Gwynedd, is located right on the coast and on the Menai Strait between the island of Anglesey (Ynys Môn) and the mountains of Snowdonia. It’s often known as ‘the city between the mountains and the sea’.
Bangor is the area’s largest service and shopping centre (with the UK’s longest High Street) offering national chains and independent shops plus a lively social life and cultural scene. Although Bangor is a popular residential location it is also a significant university city, which means it has a student property market. Bangor University has around 10,000 students and 2,000 employees.
For more information about Bangor see our article on property investment In Bangor.
Average House Price: £176,369
The ancient royal town of Caernarfon is located in Gwynedd. It has a commanding position looking out over the Menai Strait and over to the island of Anglesey (Ynys Môn). Caernarfon is best known for the spectacular Caernarfon Castle.
Although Caernarfon is a residential town the town and the local area is very popular with tourists, especially in the holiday season, as it offers easy access to the Snowdonia National Park. So property investors might look at Caernarfon holiday property investments.
For more information, see our guide to property investment In Caernarfon.
Average House Price: £144,004
Holyhead is on Anglesey and is the largest town here with a population around 14,000. Holyhead is mainly a commercial working town. It is known for Holyhead port, which is a major ferry terminal offering passenger and freight services between the UK and the Republic of Ireland on Stena Line and Irish Ferries.
Holyhead property prices are generally lower than the more rural areas of Anglesey.
Average House Price: £234,900
The seaside town of Llandudno, in the Conwy district, is North Wales’ main holiday resort. Llandudno is a resort that has kept much of its Victorian heritage which makes it very popular with visitors and holidaymakers. It’s famous for its extensive promenade, Llandudno Pier, the Great Orme headland and the Great Orme Tramway.
Llandudno has a large residential population. It’s also popular for holiday properties and for retirement homes. That means Llandudno property prices are above the North Wales average, although it is possible to buy property in Llandudno from around £75,000.
Nearby locations property investors might consider include Colwyn Bay (Bae Colwyn), Rhos-on-Sea and Penrhyn Bay which are popular residential areas. To the west of Llandudno, the historic town of Conwy is famous for Conwy Castle.
Average House Price: £185,336
Prestatyn is in Denbighshire just to the east of Rhyl. Although it has a residential and working community and good local amenities it is mainly a seaside resort town thanks to its extensive beach. Prestatyn is home to a number of holiday parks including the Pontin’s Prestatyn Sands Holiday Park.
Average House Price: £143,070
Rhyl is in Denbighshire just to the west of Prestatyn. Like Prestatyn Rhyl is a tourist and holiday resort with an extensive sandy beach. It is also a popular residential town thanks to low property prices and affordable rents and is popular with those wanting to buy a retirement property.
Rhyl is one of the cheapest towns in which to buy property in North Wales. Rightmove figures show that currently, you can buy cheap property in Rhyl for as little as £35,500.
There’s been lots of regeneration in Rhyl in recent years and more are planned, which should benefit the property market.
For more information about Rhyl see our article on the best areas of Rhyl to invest in buy-to-let.