Where to Buy Property Investments in Chelmsford: Yields of 4.2%
Chelmsford delivers rental yields of 4.2% in CM1, with 34-minute trains to Liverpool Street and a population that grew 7.9% between the last two censuses. For property investment in a genuine London commuter property market without London prices, those buy to let fundamentals deserve attention.
New property data confirms where Chelmsford sits in the market. Average sold prices in Chelmsford of £390,752 sit 34% above the England average of £291,515, and 15% above the East of England average of £340,037. This is a premium commuter city, priced accordingly, but still significantly cheaper than the capital it serves.
Our buy-to-let analysis examines Chelmsford's three postcode districts, evaluating capital growth, rental yields (you can also use our rental yield calculator here to help), and the investment potential across the city (CM1, CM2) and the rural villages to the east (CM3).
Article updated: January 2026
Chelmsford Buy-to-Let Market Overview 2026
Chelmsford's property market delivers sold prices 34% above the England average, reflecting the premium for this London commuter city, with these key statistics:
- Average sold price: £390,752 (34% above England's £291,515)
- Asking price range: £392,267 (CM2) to £523,609 (CM3) across Chelmsford postcodes
- Rental yields: 3.4% (CM3) to 4.2% (CM1) across postcodes with rental data
- Rental income: Monthly rents from £1,310 (CM2) to £1,497 (CM3)
- Price per sq ft: House prices from £420/sq ft (CM3) to £424/sq ft (CM2)
- Market activity: Sales ranging from 49 per month (CM3) to 70 per month (CM2)
- Deposit requirements: 30% deposits range from £117,680 (CM2) to £157,083 (CM3)
- Affordability ratios: Property prices from 8.6 to 11.5 times Chelmsford's median annual salary of £45,672
Contents
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by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: January 2026. All data is presented as provided by our sources without adjustments or amendments.
Why Invest in Chelmsford?
Chelmsford's investment case rests on a simple equation: London salaries, Essex prices. The 34-minute train to Liverpool Street puts City workers within easy commuting distance, while property prices sit roughly 60% below the capital. That gap sustains consistent tenant demand from professionals who've done the maths on renting here versus buying in London.
The employment base is more diversified than a pure commuter town. Health and social work accounts for 17.5% of local jobs, anchored by Broomfield Hospital. Professional services add another 10.3%, with firms choosing Chelmsford for lower business costs while staying within the London orbit. The public sector presence is notable too, with Essex County Council headquartered here. You can see the full employment breakdown via the Nomis Labour Market Profile for Chelmsford.
Local earnings reflect this professional employment mix. The median salary of £45,672 sits 43% above the national median of £31,875, giving tenants genuine spending power. An employment rate of 78.2% and economic activity rate of 80.5% both exceed regional and national averages. Jobs create rental demand. Simple as that.
Population growth has been strong. According to the latest census data, the population of Chelmsford increased by 7.9%, rising from 168,300 in 2011 to 181,500 in 2021. The city is forecast to continue growing as major housing developments come forward. The median age of 41 reflects the family-oriented nature of the market, with couples and young professionals dominating the tenant pool rather than students. You can explore the breakdown via the ONS Census Data for Chelmsford.
For comparable London commuter markets, consider Colchester (20 minutes further east with lower prices and similar yields), Basildon (more affordable entry point with stronger yields but less prestige), or Cambridge (premium knowledge-economy market with higher prices but comparable commute times).
Regeneration and Investment in Chelmsford
Chelmsford has entered 2026 as a fundamentally different investment proposition. The official opening of its second railway station in late 2025 has transformed the city from a single-hub commuter town into a dual-centre economy. For buy-to-let investors, the completion of this century-long infrastructure ambition has instantly unlocked the northern fringe as a premium rental property market, rivalling the traditional city centre.
Major projects delivering real change include:
- Beaulieu Park Station (Now Open): The defining milestone for the decade. On 26 October 2025, the first trains officially departed from Beaulieu Park, marking the first new station on the Great Eastern Main Line for over 100 years. For investors, this is no longer speculative; the asset is live. It provides a 40-minute direct link to London Liverpool Street, instantly re-rating property values in the surrounding Channels and Beaulieu neighbourhoods. Timetables and facilities at Greater Anglia Beaulieu Park.
- Chelmsford Garden Community (The Green Light): Following the station's opening, the residential masterplan has accelerated. In December 2025, the City Council officially granted planning permission for two new major zones, unlocking the delivery of 2,750 new homes and the Northern Radial Distributor Road. This ensures a steady pipeline of high-quality family housing to meet the demand created by the new rail link. Details at Chelmsford Garden Community.
- Chelmer Waterside (The Gasworks Unlock): While the north expands, the city centre is densifying. The Bow Bridge Road link officially opened in July 2025, physically connecting the isolated gasworks site to the city centre. Critical for investors: the Council is scheduled to announce the winning development partner for the 1,000-home waterfront scheme on 2 February 2026. This announcement will likely trigger a surge of interest in the CM2 riverside corridor. Details at Chelmer Waterside Regeneration.
Chelmsford Property Market Analysis
When Was the Last House Price Crash in Chelmsford?
Chelmsford experienced a significant correction during the 2008 financial crisis, though slightly less severe than London and Cambridge. Average sold prices fell from a peak of £227,679 in November 2007 to a trough of £182,802 by March 2009, a decline of 19.7%. Recovery was relatively swift for a southern market, with prices returning to pre-crash levels by early 2014.
Source: HM Land Registry House Price Index for Chelmsford
Here is how the Chelmsford property market has performed over key cycles:
- 1995-2007 saw property values nearly quadruple, rising from £59,177 to £227,679 as Chelmsford established itself as a prime London commuter location with improving rail links and growing local employment.
- 2008-2009 brought a correction of 19.7%. Chelmsford fell in line with the broader South East, though held up slightly better than premium markets like Cambridge which dropped over 20%.
- 2010-2013 saw a slow recovery with prices fluctuating between £206,000 and £227,000. The property market essentially moved sideways for four years as buyers remained cautious.
- 2014-2016 delivered exceptional growth. Prices surged from £227,896 to £306,804, a gain of 35% in under three years. City status (granted in 2012) raised Chelmsford's profile, while London's affordability crisis pushed commuters further out along the Great Eastern Main Line.
- 2017-2019 saw a plateau as stamp duty changes and Brexit uncertainty cooled demand. Prices fluctuated between £316,000 and £334,000 with no clear direction.
- 2020-2022 brought the pandemic surge. Prices climbed from £324,614 to £387,476 as demand for family homes with gardens intensified. Chelmsford's mix of space and London access proved particularly appealing to those leaving the capital.
- 2023 saw a correction of around 7.2% as mortgage rates spiked, with prices falling from the August 2022 peak of £387,476 to £364,064 by December 2023.
- 2024-2025 has marked recovery. Prices have climbed back to £390,752 as of October 2025, surpassing the previous peak and showing year-on-year growth of 4.2%.
Long-Term Property Value Growth in Chelmsford
For buy-to-let investors focused on capital preservation and long-term appreciation, Chelmsford's trajectory shows substantial gains despite periodic corrections:
- 5 years (2020-2025): 20.4% growth (£324,614 to £390,752)
- 10 years (2015-2025): 39.3% growth (£280,481 to £390,752)
- 15 years (2010-2025): 83.5% growth (£212,982 to £390,752)
- 20 years (2005-2025): 102.2% growth (£193,232 to £390,752)
- 30 years (1995-2025): 560.2% growth (£59,177 to £390,752)
The 2008 and 2023 corrections demonstrate that Chelmsford is not immune to property market cycles. However, the city's buy-to-let fundamentals remain strong. Structural demand from London commuters, a growing local employment base, and constrained housing supply within the greenbelt have consistently driven recovery. The key risk for investors is overpaying at the top of a cycle, but those who held through 2008 have seen their investments more than double.
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Sold House Prices in Chelmsford
The latest sold house price index by the Land Registry confirms Chelmsford's position as a premium commuter market, with values sitting above national benchmarks across every property type but remaining more accessible than nearby Cambridge or London.
Chelmsford property prices average £390,752, which is 34% above the England average of £291,515. This premium reflects the city's strong commuter appeal, with Liverpool Street just 34 minutes by train, combined with quality schools and expanding local employment.
Detached houses command the steepest premium in absolute terms, averaging £698,038, a 48% uplift against the national average. These are concentrated in sought-after areas like Writtle, Great Baddow, and the villages surrounding the city. Semi-detached houses average £436,450, sitting 51% above the England figure, popular with families seeking space within commuting distance of the station.
Terraced houses average £350,191, representing a 44% premium on the national average. Victorian terraces in Moulsham and the streets around the city centre attract young professionals and first-time landlords. Flats and maisonettes offer the most accessible entry point at £218,854, though still sitting at the national average. For investors, flats in CM1 and CM2 near the station typically offer the strongest rental yield returns in the city.
Updated January 2026
| Property Type | Chelmsford Average | England Average | Difference |
|---|---|---|---|
| Detached houses | £698,038 | £470,151 | +48.5% |
| Semi-detached houses | £436,450 | £289,909 | +50.5% |
| Terraced houses | £350,191 | £243,978 | +43.5% |
| Flats and maisonettes | £218,854 | £219,065 | -0.1% |
| All property types | £390,752 | £291,515 | +34.0% |
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: January 2026. All data is presented as provided by our sources without adjustments or amendments.
Sold Price Per Square Foot in Chelmsford (£)
Updated January 2026
The data represents the average sold price per square foot across Chelmsford's postcodes, based on completed transactions to show where you get the most physical space for your money.
| Rank | Area | Sold Price Per Square Foot |
|---|---|---|
| 1 | CM2 (Great Baddow, Galleywood, Sandon) | £425 |
| 2 | CM1 (City Centre, Broomfield, Writtle) | £422 |
| 3 | CM3 (Danbury, South Woodham Ferrers, Maldon fringe) | £421 |
The uniformity here is striking. Just £4 per square foot separates the most expensive postcode from the cheapest. This is unusual for a commuter city and tells you something important: Chelmsford's property market is driven by the same fundamental factor across all areas, which is proximity to London via the Great Eastern Main Line.
For comparison, Cambridge averages over £500 per square foot, while Colchester sits closer to £300. Chelmsford occupies the middle ground, reflecting its position as a more accessible alternative to Cambridge for London commuters who want space without the university city premium.
The practical implication for investors is that location selection matters less for capital value than it does in cities with wider price variation. A £120,000 deposit in CM1 buys roughly 945 sq ft of living space, while the same capital in CM3 gets you 950 sq ft. The difference is negligible. Instead, your focus should shift to yield potential and tenant demand. CM1 and CM2, closer to the station and employment centres, deliver yields of 4.0-4.2%. CM3's rural villages offer larger properties but weaker yields at 3.4%, reflecting their appeal to owner-occupiers rather than renters.
Note: These figures reflect averages across all property types and ages. Individual property value depends on condition, specific location, and building age.
For Sale Asking House Prices in Chelmsford
Updated January 2026
The data represents the average asking prices of properties currently listed for sale across Chelmsford's three postcode districts.
| Rank | Area | Average Asking Price |
|---|---|---|
| 1 | CM3 (Danbury, South Woodham Ferrers, Maldon villages) | £523,609 |
| 2 | CM1 (North Chelmsford, Broomfield, Writtle) | £399,342 |
| 3 | CM2 (South Chelmsford, Great Baddow, Moulsham) | £392,267 |
Chelmsford's pricing reveals a stark city-village divide. CM3 commands a £124,000 premium over CM1, reflecting its coverage of affluent rural villages like Danbury, the Hanningfields, and South Woodham Ferrers rather than the city itself. These are lifestyle purchases for families seeking space, period properties, and countryside living within commuting distance of London.
CM1 and CM2 sit within £7,000 of each other, offering genuine alternatives for investors. CM1 covers the north and west including Broomfield (popular with hospital workers), Writtle village, and the expanding Beaulieu Park development. CM2 covers the south and east including Great Baddow (one of Chelmsford's most established suburbs), Moulsham, and Galleywood.
All three postcodes exceed both the England average (£291,515) and East of England average (£340,037). Even the most affordable postcode, CM2 at £392,267, sits 35% above England and 15% above the region. This is a premium commuter market, not a value play.
Note: These figures represent average asking prices across all property types. Actual achievable prices vary depending on property size, condition, and specific location within each postcode.
House Price Growth in Chelmsford (%)
Updated January 2026
The data represents average house price growth across multiple timeframes, calculated using postcode-level data blending sold prices and asking prices.
| Area | 1 Year | 3 Year | 5 Year |
|---|---|---|---|
| 1. CM3 (Danbury, South Woodham Ferrers, Maldon villages) | +1.6% | -0.9% | +12.4% |
| 2. CM1 (North Chelmsford, Broomfield, Writtle) | +8.0% | +1.6% | +8.0% |
| 3. CM2 (South Chelmsford, Great Baddow, Moulsham) | +2.8% | +2.8% | +6.5% |
CM1 leads on recent momentum with +8.0% annual growth, likely driven by the Beaulieu Park development and continued demand from London commuters seeking properties near the station. The identical one-year and five-year figures suggest growth has accelerated recently after a flatter period mid-cycle.
CM3 shows the strongest five-year growth at +12.4%, though recent performance has softened to +1.6% annually. The rural village market peaked during the pandemic "race for space" and has since consolidated. The negative three-year figure (-0.9%) reflects this correction, though long-term buyers have still done well.
CM2 demonstrates the steadiest trajectory with consistent +2.8% growth across one and three-year periods. This predictability appeals to investors prioritising stability over speculation. The more modest five-year figure (+6.5%) reflects CM2's position as the most affordable urban postcode, where yield matters more than capital gains.
Average Monthly Property Sales in Chelmsford
Updated January 2026
The data represents the average number of residential property sales per month across Chelmsford's postcode districts, acting as a key indicator of market liquidity.
| Rank | Area | Average Monthly Sales |
|---|---|---|
| 1 | CM2 (South Chelmsford, Great Baddow, Moulsham) | 70 |
| 2 | CM1 (North Chelmsford, Broomfield, Writtle) | 63 |
| 3 | CM3 (Danbury, South Woodham Ferrers, Maldon villages) | 49 |
Chelmsford shows very strong property sales volume across all three postcodes, with even the quietest area (CM3) recording 49 monthly sales. This depth of activity means investors can buy and exit without extended waiting periods, unlike some rural East of England markets where stock sits for months.
CM2 leads with 70 monthly sales, combining the lowest entry prices, reasonable yields at 4.0%, and the deepest buyer pool. For investors prioritising liquidity alongside buy-to-let fundamentals, CM2 offers the most straightforward transactions. CM1 at 63 sales runs close behind, with slightly higher prices but stronger recent growth.
CM3 at 49 sales reflects its village character. Fewer transactions, but still sufficient volume for confident buying and selling. The lower turnover suits investors with longer holding periods who are less concerned about quick exits.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: January 2026. All data is presented as provided by our sources without adjustments or amendments.
Chelmsford Rental Market Analysis
For new landlords and investors considering if buy to let is worthwhile in Chelmsford and thinking how much they can charge for rent across the city and its surrounding villages, the rental data below gives an indication of the rental income per month and the rental yields landlords can aim to achieve. This is helpful if you are considering growing your property business in this area.
Rental Prices in Chelmsford (£)
Updated January 2026
The data represents the average monthly rent for long-let AST properties in Chelmsford.
| Rank | Area | Average Monthly Rent |
|---|---|---|
| 1 | CM3 (Danbury, South Woodham Ferrers, Maldon villages) | £1,497 |
| 2 | CM1 (North Chelmsford, Broomfield, Writtle) | £1,413 |
| 3 | CM2 (South Chelmsford, Great Baddow, Moulsham) | £1,310 |
CM3 commands the highest rents at £1,497, but this reflects property size in the rural villages rather than urban demand. Tenants here are typically families seeking detached homes with gardens and countryside living. The 3.4% yield shows that high rents don't offset the £523,609 average asking price.
CM1 at £1,413 and CM2 at £1,310 cover the city itself. The £103 monthly gap between them reflects CM1's slightly higher property values and its coverage of popular areas like Broomfield and the Beaulieu Park development. Both postcodes draw London commuters, young professionals, and families working at local employers including Broomfield Hospital and the county council offices.
Chelmsford rents sit above most East of England comparators. Ipswich averages £929-£994 in its urban postcodes, while Colchester sits around £1,000-£1,100. Only Cambridge commands significantly higher rents in the region. The premium reflects Chelmsford's 34-minute commute to Liverpool Street and its affluent local workforce.
Gross Rental Yields in Chelmsford (%)
Updated January 2026
The data represents the average gross rental yields across Chelmsford's postcode districts, based on asking prices and asking rents.
| Rank | Area | Gross Rental Yield |
|---|---|---|
| 1 | CM1 (North Chelmsford, Broomfield, Writtle) | 4.2% |
| 2 | CM2 (South Chelmsford, Great Baddow, Moulsham) | 4.0% |
| 3 | CM3 (Danbury, South Woodham Ferrers, Maldon villages) | 3.4% |
CM1 leads at 4.2%, combining station proximity, Broomfield Hospital employment, and the newer Beaulieu Park development. CM2 follows at 4.0% with the deepest transaction volume at 70 sales per month, offering the best combination of yield and liquidity. CM3 at 3.4% reflects its village character where high rents don't offset £524k average prices.
For context, Chelmsford yields sit below comparable East of England markets. Peterborough delivers up to 5.3% in PE1 with entry prices 47% below Chelmsford, while Ipswich reaches 5.1% in IP2. The trade-off is tenant quality and capital growth potential. Chelmsford's 34-minute Liverpool Street commute, £45,672 median earnings, and 70% home ownership rate create a tenant pool of established professionals rather than transient renters. Lower yields, but lower risk.
Is Chelmsford Rent High?
Chelmsford rents sit at the upper end of affordability for a commuter city, though they remain more manageable than the Cambridge or London markets that many tenants might otherwise consider.
Average rent in Chelmsford costs between 34% and 39% of the average gross annual earnings for a full-time resident. This is based on the Nomis Labour Market Profile for Chelmsford showing the median gross annual income for Chelmsford residents is £45,672.
The general affordability guideline suggests rent should not exceed 30% of gross income. All three Chelmsford postcodes exceed this threshold, though not by the margins seen in nearby Cambridge where rents consume 40-48% of income. This positions Chelmsford as a more affordable alternative for professionals who need access to London or the wider East of England economy.
The city's tenant profile explains this pricing. Chelmsford attracts London commuters earning City salaries, insurance and financial services professionals, and NHS workers from Broomfield Hospital. These tenants can absorb rents above the 30% guideline because their actual household incomes often exceed the local median.
| Rank | Area | Rent as % of Income |
|---|---|---|
| 1 | CM3 (Danbury, Maldon Road Villages) | 39.3% |
| 2 | CM1 (Central Chelmsford, Broomfield) | 37.1% |
| 3 | CM2 (Great Baddow, Moulsham) | 34.4% |
The higher percentage in CM3 reflects larger properties in village locations rather than affordability pressure. Rents there are driven by detached houses and period cottages, not the flats and terraces that dominate the city centre buy-to-let fundamentals. CM2 offers the most accessible entry point for tenants, which partly explains why it sees the highest sales volume across the city.
For investors, these figures indicate a property market where rents have room to grow. Unlike Cambridge where yields are compressed because rents have hit their ceiling, Chelmsford tenants are not yet stretched to breaking point. The 34 minute commute to Liverpool Street means tenants compare Chelmsford rents to London alternatives, not to local wages alone.
Note: These calculations use median gross salary for Chelmsford residents from the 2025 ASHE data. Actual tenant affordability varies based on household income, with many Chelmsford tenants earning above the local median due to the commuter profile of the city.
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Buy-to-Let Considerations
Are Chelmsford House Prices High?
Chelmsford sits in the middle ground for commuter belt affordability. Prices are elevated compared to the national average, but the city remains more accessible than Cambridge, London, or the premium Surrey and Hertfordshire markets that compete for similar tenants.
Purchasing a property in Chelmsford requires between 8.6 and 11.5 times the median annual salary. This is based on the Nomis Labour Market Profile for Chelmsford showing the median gross annual income for Chelmsford residents is £45,672.
The city postcodes, CM1 and CM2, cluster around 8.6-8.7x income. This is stretched by historic standards but within reach for dual-income professional households, particularly those earning London salaries. The rural CM3 postcode at 11.5x reflects larger detached properties and period homes in villages like Danbury rather than the typical buy-to-let property market.
| Rank | Area | Price to Income Ratio |
|---|---|---|
| 1 | CM3 (Danbury, Maldon Road Villages) | 11.5x |
| 2 | CM1 (Central Chelmsford, Broomfield) | 8.7x |
| 3 | CM2 (Great Baddow, Moulsham) | 8.6x |
For context, the England average price-to-income ratio sits around 9.1x based on national median earnings of £31,875 against average sold prices of £291,515. Chelmsford's city postcodes actually come in slightly below this national benchmark despite being a premium commuter location. Higher local salaries offset higher property prices.
This relative affordability explains why Chelmsford continues to attract London leavers. A couple priced out of East London or unable to stretch to St Albans can realistically purchase in CM1 or CM2 while keeping the same job. For investors, this sustained buyer demand from relocating Londoners supports both rental occupancy and long-term capital growth.
Investors seeking lower entry points in the East of England might also consider Colchester or Ipswich, both offering sub-7x ratios with improving transport links. For those prioritising yield over growth, Peterborough remains one of the most affordable cities within an hour of London.
How Much Deposit to Buy a House in Chelmsford?
Assuming a standard 30% deposit for a buy-to-let mortgage, the data shows a £40,000 difference between the most accessible city postcode and the rural villages to the east.
| Rank | Area | 30% Deposit Required |
|---|---|---|
| 1 | CM2 (Great Baddow, Moulsham) | £117,680 |
| 2 | CM1 (Central Chelmsford, Broomfield) | £119,803 |
| 3 | CM3 (Danbury, Maldon Road Villages) | £157,083 |
The same £118,000 deposit that buys one property in CM2 would stretch further in nearby Basildon or Colchester, both offering lower entry prices with comparable commuter credentials. However, Chelmsford's 34 minute journey to Liverpool Street remains the fastest in Essex, and that premium access is reflected in both prices and tenant demand.
Investors with larger deposits might consider the buy-refurbish-refinance strategy. Chelmsford's strong sales volumes mean refinanced properties can be revalued and remortgaged relatively quickly, recycling capital for the next purchase.
How to Invest in Buy-to-Let in Chelmsford
Property Investments UK and our partners have ready to go buy-to-let properties to purchase across Chelmsford, Essex and the rest of the UK.
With new properties coming available weekly, we can source suitable investment properties across the region and country to match your criteria.
We have partnered with the best property investment agents we can find for 8+ years and below you can find links to help you buy properties in Chelmsford and across the region including:
- Buy-to-let investment properties
- PBSA and student lets
- BMV properties for sale
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- and other high yielding opportunities
and articles helping you with:
- How to find off-market properties
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- Are HMO properties a good investment
Consider Alternative Markets to Chelmsford for Buy-to-Let Investment
Chelmsford offers a balance of commuter appeal and relative affordability, but investors seeking different risk-return profiles have options across the country. For higher yields with faster cash flow, buy-to-let in Liverpool and buy-to-let in Manchester deliver 6%+ returns with strong tenant demand from growing city economies.
If capital growth in southern markets remains your priority but Chelmsford's entry prices feel stretched, buy-to-let in Reading offers Elizabeth Line connectivity with a different tenant profile, while buy-to-let in Milton Keynes combines fast London access with a younger, growing population. For investors comfortable looking further north, buy-to-let in Leeds and buy-to-let in Nottingham provide strong rental markets at significantly lower entry points.