Areas of Hereford: Buy-to-Let Property Investment Hotspots
Off the beaten track is a phrase that could well be used to describe Hereford. Although in some ways that’s part of its attraction it’s also the reason why Hereford is well worth a look. It means that most property investors will never discover the many attractions that Hereford offers as a property investment location.
Why Invest in Hereford?
Hereford is a historic cathedral city located in the mainly rural county of Herefordshire, which sits between the West Midlands and South Wales. With a population of around 61,000, Hereford is the main business and commercial hub for Herefordshire and the wider Welsh Borders area.
The city is served by the M50 motorway and the A49, A465, and A438 roads. Hereford Station provides rail links to Worcester, Shrewsbury, Birmingham, Manchester, Swansea, Cardiff, and London.
Hereford is known for its agricultural and cider-making industries, with H.P. Bulmer being one of the city's most well-known names. The city is also home to a diverse range of other businesses, including those in the agriculture, food production, light manufacturing, and services sectors.
Hereford has a rich history dating back to at least 676 AD and is a popular tourist destination, particularly during the summer. The city is home to several notable landmarks, including Hereford Cathedral, the Museum of Cider, and the Hereford Museum & Art Gallery.
The city is also known for its educational institutions, with several colleges offering a range of courses, including university-level programmes. However, Hereford does not currently have a university of its own.
Hereford is an ideal location for those seeking a safe and liveable city with good schools. It is particularly popular with families and retirees, contributing to a stable property market.
Skylon Park, part of the Hereford Enterprise Zone, aims to attract new businesses and jobs to the area, which could further boost the local economy and increase housing demand in the future.
Overall, Hereford offers a mix of historic charm, cultural attractions, and economic potential, making it an appealing location for investors.
Property Values
As of 2024, the average property price in Hereford is around £323,000, with the median price being £270,000. This is a slight decrease from the previous year, where the average price was £8,800 higher. The average price of a newly built property is £386,000, while the average price of an established property is £322,000.
Property prices in the area vary, with the most affordable postcode sector being 'HR6 8', where the average price is £208,000. The most expensive postcode sector is 'HR9 6', where the average property price is £481,000.
Compared to other areas in England and Wales, Hereford is relatively affordable, ranking as the 52nd cheapest postcode area out of 105.
There are a variety of properties currently on the market in Hereford, ranging from historic townhouses to modern detached homes.
Average Asking Price by Postcode Area
Last updated: June 2024
Data from HM Land Registry
| Postcode District | Average Property Price |
|---|---|
| HR1 | £357,837 |
| HR2 | £365,275 |
| HR3 | £509,367 |
| HR4 | £327,001 |
| HR5 | £346,551 |
| HR6 | £357,138 |
| HR7 | £342,186 |
| HR8 | £416,809 |
| HR9 | £456,387 |
Rental Demand
Hereford's buy-to-let market is aimed at local renters, as well as those moving to the area for work. The city is particularly popular with families due to its reputation as a safe place to live and its range of good schools.
As of June 2024, the average monthly rent in Hereford was £874, with the average cost of renting a home in the UK being close to £1,223 per month. The specific rent can vary depending on the property type and number of bedrooms. For example, a one-bedroom property in Hereford typically rents for £606 per calendar month (PCM), while a five-bedroom property can rent for up to £1,500 PCM.
The demand for rental properties in the UK hit record highs in 2022 and early 2023 but has since eased, although it remains higher than pre-pandemic averages. This high demand, coupled with a constrained supply of rental properties, has resulted in rising rents across the country. However, there are signs that rental growth is beginning to slow, with more rental properties offering reduced asking rents.
Average Rental Yield by Postcode Area
Rental yield is the rental return an investor can expect on their investment once costs have been taken into consideration.
Last updated: June 2024
| Postcode District | Average Rental Yield |
|---|---|
| HR1 | 3.5% |
| HR2 | 3.2% |
| HR3 | -- |
| HR4 | 3.4% |
| HR5 | -- |
| HR6 | 3.1% |
| HR7 | -- |
| HR8 | 3.3% |
| HR9 | 2.4% |
Property Investment in Hereford
Population: 61,000
Average House Price: £260,000
Hereford is a small city but there is a lot of choice in the property market. Investors can choose from old Jacobean-style buildings, period Georgian, Victorian and Edwardian properties, traditional terraces and cottages. There is also more modern property built from the 1950s to the present day, especially on the housing estates in the Hereford suburbs. Hereford also offers new build property too with more new builds planned.
Hereford property buyers should bear in mind that Hereford is divided into north and south by the River Wye. The main river crossing can be congested at rush hour. That means that buyers and tenants tend to choose a property on the same side of the river as their work and schools.
Hereford city centre is mainly a busy commercial area but there is some city living type property. The streets close to Hereford Cathedral are popular and sought-after areas. Further out, areas within comfortable walking distance of the city centre are popular with buyers and tenants too.
Most of Hereford including the city centre itself is to the north of the River Wye. Hereford Station, Hereford County Hospital, Hereford College of Arts and the out-of-town retailers are also located here. Suburbs here include White Cross, Widemarsh, Eign Hill and Tupsley.
Suburbs to the south of the River Wye include Belmont, Redhill and Lower Bullingham. The Rotherwas Industrial Estate and Skylon Park in the Hereford Enterprise Zone are located in this part of the city. The southern areas of Hereford tend to be good value property areas.
Investors interested in investing in Hereford might also consider some of the small villages surrounding the city. These include Credenhill, Clehonger, Hagley, Lugwardine, Moreton on Lugg and Withington. Village properties are popular with those who want a rural lifestyle but good access to the amenities and schools in Hereford.