Areas of Hampshire: Buy-to-Let Property Investment Hotspots
Hampshire is a place where coast, country and city come together to offer a multitude of different opportunities to property investors. So which are the best areas of Hampshire to invest in buy-to-let?
Why Invest in Hampshire?
The largest cities of Hampshire are the coastal cities of Southampton and Portsmouth. Together they form an almost contiguous urban area known as the South Hampshire conurbation. With a population of around 1.5 million, it is one of the biggest urban areas in the UK.
Some of Hampshire is very rural, with many market towns and small villages. Scenic areas such as the New Forest National Park and South Downs National Park are partly within Hampshire.
The county town of Hampshire is Winchester. Hampshire is sometimes referred to as Hants for short.
Hampshire has a successful economy that is worth around £35.4 billion annually and supports 689,000 jobs, according to Hampshire County Council's figures.
The economy here benefits from many high-value industries which provide many well-paid jobs and help boost the Hampshire property market. Expanding industries in Hampshire include aerospace and defence, finance, digital, life sciences and marine and maritime, according to Business Hampshire. Southampton and Portsmouth are major port cities providing links from the UK to the rest of the world and the ports are important contributors to the economy.
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Hampshire benefits from great connectivity being on the main road and rail links between London and the south coast. Towns which have good rail connections to Southampton, Portsmouth and London are particularly popular with buyers and tenants.
Hampshire offers opportunities for student accommodation investors. There are four main universities in Hampshire which are located in Southampton (two universities with 43,500 students, overall), Portsmouth and Winchester.
Property Values in Hampshire
Hampshire is one of the more prosperous parts of the country. This means Hampshire house prices are generally above the national average. According to Zoopla, the average house in Hampshire currently costs as much as £390,000.
It is possible to find cheap investment property in Hampshire, however. There are some expensive towns and villages in Hampshire but there are also some good value areas of the county too, where prices are well under the national average.
According to Zoopla, while the most expensive houses in Hampshire can cost several millions of pounds it is possible to find investment property in Hampshire for as little as £75,000.
The most expensive large town in Hampshire is Winchester. The cheapest places to invest in property in Hampshire are Southampton followed by Portsmouth. The Rushmoor local authority area in north Hampshire also has good value property compared to much of the county.
Rental Demand in Hampshire
Hampshire has a mixed property rental market. There is demand from locals, those who cannot afford to buy in areas where property prices are high, and those coming to work in the county. Some locations in Hampshire have a student accommodation market too.
Hampshire can offer attractive yields for property investors. According to property xyz, investors should obtain a yield of at least 3.5% on average across the county, with some locations offering over 5%.
Property Investment in Hampshire
Here’s our guide to property investment in the cities and main towns of Hampshire.
Aldershot
Population: 37,200 approximately
Average House Price: £289,335 (Rushmoor district)
Aldershot is located in north Hampshire and is part of a cluster of towns including Farnborough, Fleet, Frimley and Farnham.
The Aldershot economy is closely connected to its importance as a garrison town, also known as Aldershot Garrison or Aldershot Military Town. The area also has many other local employers and a strong jobs market. It has good connections by rail and to the A331, A31 and M3 roads.
Aldershot has seen lots of new housebuilding in recent years. It is popular as a good value place to live for those who work in and around the region.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Aldershot is currently £1,030 PCM. Gross average rental yields in Aldershot are around 3.9%, according to property xyz.
Alton
Population: 17,800 approximately
Average House Price: £410,679 (East Hampshire District)
Alton is a historic market town located in rural Hampshire. Alton has good road connections via the A31, a direct train service to London Waterloo, and its own local shops and other amenities. Alton and the surrounding villages are also popular commuter spots.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Alton is currently £795 PCM. Gross average rental yields in Alton are around 3.7%, according to property xyz.
Andover
Population: 50,000 approximately
Average House Price: £351,273 (Test Valley district)
Andover is located in rural Hampshire along the A303 trunk road. It’s a busy working town and military base. Marlborough Lines is the Land Forces HQ of the British Army. There are also light manufacturing, service and logistics businesses in Andover creating a strong local jobs market and boosting demand for accommodation.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Andover is currently £711 PCM. Gross average rental yields in Andover are around 3.7%, according to property xyz.
Basingstoke
Population: 114,000 approximately
Average House Price: £317,088 (Basingstoke and Deane district)
Basingstoke is one of the largest towns in Hampshire and is a jobs hotspot. Key industries here are modern, expanding ones like IT, the digital sector, tech, telecommunications, electronics and financial services. Many major companies are based in Basingstoke including Sony, De La Rue, The Automobile Association, Motorola Solutions, Fujitsu and Eli Lilly and Company.
Basingstoke has a wide range of shops and services and good travel connections using the M3 plus a direct train service to London Waterloo taking as little as 44 minutes.
Basingstoke has something of an unfashionable reputation. However, it has good value property compared to much of the south-east making it popular with buyers and investors on a budget. Basingstoke is also attractive to some London commuters.
Data from the Home.co.uk Market Rent Summary shows that the average rent in Basingstoke is currently £1,008 PCM. Gross average rental yields in Basingstoke are 4.4%, according to property xyz.
Here’s more information on the buy-to-let property investment market in Basingstoke.
Farnborough
Population: 65,000 approximately
Average House Price: £289,335 (Rushmoor district)
Farnborough is located in north Hampshire and is one of a number of towns along the Blackwater Valley including Aldershot, Fleet, Frimley and Farnham. It’s a busy commercial centre with many employers, including many in the technology and aerospace industries, and a good range of shops and services. There are also good transport links on the M3 and towards the M25.
Farnborough is an employment hotspot and a good value Hampshire property location.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Farnborough is currently £1,039 PCM. Gross average rental yields in Farnborough are 3.8%, according to property xyz.
Fleet
Population: 42,000 approximately
Average House Price: £408,075 (Hart district)
Fleet is in north Hampshire close to Farnborough and Aldershot. It benefits from good access to the M3 motorway at junction 4 and frequent rail services to Basingstoke and London Waterloo. Fleet as well as Crookham and Church Crookham are smart residential spots and popular with area commuters.
Research using the Home.co.uk Market Rent Summary shows that the average rent in Fleet is currently £1,043 PCM. Gross average rental yields in Fleet are 3%, according to property xyz.
Lymington
Population: 15,000 approximately
Average House Price: £373,274 (New Forest District)
Lymington is a small port town on The Solent. Lymington is particularly known as a centre for yachting and it also has a Wightlink ferry connection to Yarmouth on the Isle of Wight. Lymington is a smart residential town, is popular with retirees and also has a tourist trade in the season.
According to the Home.co.uk Market Rent Summary, the average rent payable in Lymington is currently £1,311 PCM. Gross average rental yields in Lymington are 2.8%, according to property xyz.
Petersfield
Population: 15,000 approximately
Average House Price: £410,679 (East Hampshire District)
Petersfield is a rural market town on the edge of the South Downs. Its good road links via the A3 and rail connections make it and the surrounding villages a popular location for those who commute to Portsmouth and the north Hampshire towns.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Petersfield is £1,107 PCM at the moment. Gross average rental yields in Petersfield are just 2.5%, according to property xyz.
Portsmouth
Population: 207,000 approximately
Average House Price: £231,027
Portsmouth is very much a city of the sea. It is the home of the Royal Navy, one of the country’s biggest commercial ports and a major ferry terminal with links to Europe.
Major employers in Portsmouth include the Royal Navy at HMNB Portsmouth and BAE Systems Maritime with 20,000 personnel overall. Other employers are financial and business services, light manufacturing, public services, transport, retail and the university. Portsmouth also has a visitor economy, with attractions including Portsmouth Historic Dockyard.
Portsmouth is located on an island and is the most densely populated city in the UK after London. That means land to build on is in short supply which helps support the property market.
Portsmouth is one of the cheaper places in Hampshire for property investors. It’s possible to find property for sale in Portsmouth for as little as £75,000.
Other towns in the wider Portsmouth area include Havant, Waterlooville, Gosport and Fareham.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Portsmouth itself is currently £1,247 pcm. Gross average rental yields in Portsmouth, overall, are around 4.1%, according to property xyz.
Here’s more detailed information on the buy-to-let property investment market in Portsmouth.
Southampton
Population: 254,000 approximately
Average House Price: £219,368
Southampton is one of the UK’s major maritime cities with its container port, ferry terminal and major cruise ship terminal. Southampton’s port supports around 15,000 jobs locally and contributes £1 billion to the economy.
Southampton is the biggest regional centre for shopping, leisure and entertainment. The city also has a growing visitor economy.
Southampton is a jobs hotspot. Major companies here include Cunard, BAT, Kingfisher (B&Q), Ordnance Survey plus a major oil refinery and chemicals plant, hospitals and two universities.
This survey says Southampton is the third best place in the country to live and work, up there with Oxford and Cambridge!
Overall Southampton is the cheapest place to invest in property in Hampshire. Southampton property prices are also well under the average house price in England.
Other areas in the wider Southampton area include Totton, Eastleigh, Chandler’s Ford and the separate town of Romsey.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Southampton is currently £1,191 PCM. Gross average rental yields in Southampton are a strong 5.5%, according to property xyz.
Here’s more information on the buy-to-let property investment market in Southampton.
Winchester
Population: 117,000 approximately
Average House Price: £434,916
Winchester is Hampshire’s county town. Winchester is known for its history and culture, Winchester Cathedral, the famous Winchester School and the University of Winchester. The city has a thriving local economy and a busy tourist trade in the season. Winchester also has good road and rail links towards London and the south coast.
Winchester is an affluent area and is an upmarket place to live, making it one of Hampshire’s higher property price locations.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Winchester is currently £1,691 PCM. Gross average rental yields in Winchester are around 2.7% to 3.8% depending on the area, according to property xyz.
Here’s a useful report on the buy-to-let property investment market in Winchester.
Another Area to Consider
Property investors who are interested in Hampshire could also consider investing in the Isle of Wight. The Isle of Wight is considered to be part of Hampshire historically, although it is now is a separate local authority area.
About Our Data
Note: Population estimates are based on information provided by Localstats. Current average asking prices are taken from HM Land Registry data and Zoopla. Buy-to-let yields by postcode are taken from Property.xyz.