Areas of Coventry: Buy-to-Let Property Investment Hotspots
Being sent to Coventry is supposed to be a bad thing. But, in reality, every shrewd property investor should welcome being sent to Coventry with open arms. That’s because Coventry is a fast expanding city and one that has huge plans for regeneration and development. Yet Coventry property prices are still well below the UK average.
Why Invest in Coventry?
Coventry in Warwickshire is the fastest expanding city in the country outside Greater London, according to ONS figures. The current population is 377,000 but it could rise to 417,000 in the next decade.
Coventry is well known for being the one-time centre of UK motor manufacturing. It’s still the headquarters of the world-famous Jaguar Land Rover company or JLR. But there are lots of other new, modern industries here - such as research, development and advanced manufacturing - which is great news for Coventry’s future.
Coventry could become a major world centre for battery development and manufacture in future. Something that could be really big given the drive towards electric cars. UKBIC or the UK Battery Industrialisation Centre is opening here this year. This new industry could create 10,000 jobs!
Coventry benefits from a great location right in the centre of the UK. It is close to the M6, M6 Toll, M69, M45 and M42, plus the A45 and A46. There are regular train services to Birmingham, London and many other places from Coventry. Coventry railway station is being expanded and a futuristic new tram system, the VLR or Very Light Rail, is being planned which could transform transport around the town.
Birmingham Airport is close by and the future HS2 high-speed railway network will have a station at Birmingham Interchange not far from Coventry.
Coventry is also popular with those who commute to Birmingham. There are up to seven trains an hour to Birmingham, with the fastest journey being 20 minutes.
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Coventry is undergoing a multi-million-pound regeneration and redevelopment at the moment. Upcoming schemes include expanding the new business district at Friargate and relaunching the huge City Centre South retail and leisure development while two new luxury city centre hotels will open this year. Almost £80 million has been spent on improving the city centre shopping areas and public spaces while Coventry’s historic buildings are being restored. The idea behind all these plans is to make Coventry a better place to live, work and visit.
Really exciting news for Coventry is that the city has been nominated as the UK City of Culture 2021. The city will host a huge programme of arts and cultural events that could attract around 2.5 million visitors and really put Coventry in the news. David Burbidge, Chairman of the Coventry City of Culture Trust, says that the UK City of Culture could grow tourism by a third and put over £1 billion into the Coventry economy.
Coventry has lots to offer visitors and residents alike. Coventry is famous for having not just one but two St.Michael’s Cathedrals and its famous Casket of Jewels. Coventry museums include the Coventry Transport Museum and Coventry Music Museum and there’s also the renowned Belgrade Theatre. The Wave is an exciting new indoor water park featuring the UK’s largest wave pool and could attract hundreds of thousands of visitors a year.
Here’s another scheme which could be fantastic news for Coventry property investment: The Coventry Gateway scheme is a £140 million SEGRO project to develop 3.7 million sq.ft. of industrial and warehousing units on land next to the A45 and the small Coventry Airport. It is said that the scheme could ultimately provide up to 14,000 jobs for the area.
Coventry is a huge university centre with around 54,000 students. As well as Coventry University the University of Warwick is also at Coventry. Lots of new student blocks have been built in recent years showing the huge demand for Coventry student lets. Popular areas for Coventry University and/or University of Warwick student lets include the city centre, Earlsdon, Stoke, Canley, Barras Heath and Stivichall. Warwick students also look for student lets in Leamington Spa, a separate small town south of Coventry.
Coventry property prices are well below the UK average. According to HM Land Registry figures the average house price in Coventry is currently £190,222 compared to £251,222 nationwide. Also worth knowing for property investors is that Coventry seems to have bargain property compared to the surrounding Warwickshire where the average house price is £254,877.
Look on property portals like Rightmove and Zoopla and you’ll find Coventry property prices start from around £60,000.
This report says that there is a high demand to buy property in Coventry right now. It is one of the fastest places to sell a house in the UK. This Metro report says Coventry is also one of the most popular places with first-time buyers.
Rental Demand in Coventry
According to Zoopla figures, Coventry landlords can earn attractive monthly rents from a buy to let property in Coventry – amounting to more than £1,000 a month on average. They say that the average rent in Coventry is currently £1,086 PCM. Average rents are £513 PCM for a one-bed property, £937 PCM for a two-bed property, £1,084 PCM for a three-bed property while a four bedroomed house will make a Coventry landlord £1,418 PCM and a larger property around £1,800 every month.
Investors can earn rental yields of up to 5.9% in some parts of Coventry too.
If you’re looking to invest in shared accommodation or HMOs (a house in multiple occupation) Coventry City Council is introducing an Additional Licensing scheme from 2020. This means that as well as licensing for large HMOs, HMOs in the Coventry city area comprising fewer than five persons will need to be licensed. As will certain properties that have been converted into self-contained flats or what are known as Section 257 HMOs. You can get more information from the Coventry City Council website here.
Worth knowing for property investors is that while Coventry city itself is served by Coventry City Council, the surrounding areas fall into other council areas including North Warwickshire, Nuneaton and Bedworth, Rugby, Warwick and Solihull. This can affect council tax and the all-important school catchment areas. You can find out which area any property is in here.
Property Investment in Coventry
Here’s our guide to property investment in and around Coventry.
Coventry City Centre
Population: 17,000 approx
Average House Price: £150,000
Coventry city centre doesn’t have much city living yet, except for student developments, although new projects are being proposed. But with all the developments and improvements being made to the city centre, plus all the shops and amenities, it has all the ingredients to become a great place to buy property in the future. The exception is student property: There are already thousands of student beds in or near the city centre and more new buildings are being planned.
Yields in the Coventry CV1 postcode area are around 5.6% although a good student property investment will often offer more.
Population: 180,000 approx
Average House Price: £165,000 - £190,000
North Coventry suburbs include Radford, Holbrooks, Foleshill, Longford, Aldermans Green, Neal’s Green, Hawkesbury and the village of Keresley. North Coventry suburbs have good access both to Coventry City Centre and the M6 motorway at junctions 2 and 3. There’s also the Coventry Arena railway station between Holbrooks and Little Heath offering trains into the city and to Nuneaton.
Just north of the city itself Bedworth, in Nuneaton and Bedworth district, is a market town and popular residential spot. It has its own railway station and the journey into Coventry takes just 13 minutes.
The area is spread across the CV2, CV5, CV6 and CV7 postcodes where yields are between 4.6% and 5.9%.
Population: 38,000 approx.
Average House Price: £130,000 - £230,000
East Coventry suburbs include Henley Green, Wyken, Stoke, Binley and Binley Woods just outside the city itself. University Hospital Coventry is here, which makes it a popular location for hospital staff to buy and rent.
The area is covered by CV2 and CV3 postcodes where yields are between 4.6% and 5.4%.
Population: 92,500 approx
Average House Price: £200,000 - £300,000+
South Coventry districts include the large suburbs of Stivichall or Styvechale and Willenhall plus the separate villages of Baginton and Ryton on Dunsmore. These areas offer good transport links using the A45 and A46 to places like Rugby, Kenilworth, Royal Leamington Spa and Warwick and so are popular with Coventry commuters to those areas.
South Coventry areas further out towards and in Warwick district include some of the area’s most expensive residential locations.
The area is mostly covered by CV3 where investors could expect 4.6% on average.
Average House Price: £185,000 - £350,000 plus
Suburbs in this area include Coundon, Spon End, Earlsdon and Canley plus, further out, Allesley, Eastern Green, Westwood Heath and Tile Hill.
Investors planning to buy property here should bear in mind that the University of Warwick campus and the University of Warwick Science Park where over 2,000 people work are here, meaning strong demand for buy to lets. The area also has train stations at Canley and Tile Hill which offer regular trains into Birmingham, so surrounding areas are good for Birmingham commuters too.
Some of these areas include Coventry’s more expensive residential areas but investors can still find below-average prices in up and coming areas.
The area is covered by CV4 and CV5 postcodes where yields are around 4.6% to 5%.