Areas of Hertfordshire: Buy-to-Let Property Investment Hotspots
Hertfordshire is hard to beat for location. In Herts, everywhere is easy to get to making it a sought after and popular place to buy or rent. Here we’ll look at where are the best parts of Hertfordshire to invest in buy-to-let.
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Why Invest in Hertfordshire?
Hertfordshire is just to the north of London although it is officially part of the East of England region. Hertfordshire has a population of around 1.2 million. The population here has grown by 10% over the last two decades boosting the demand for accommodation in the process.
Parts of Hertfordshire fringe Greater London and are urban and densely populated. Others are within the Metropolitan Green Belt and stretch out to the rural Chiltern Hills, Bedfordshire and Essex. Many areas are easily commutable to London.
Hertfordshire is one of the best-connected places in the whole country. Good road and rail links connect it to central London, the south east, the Midlands, the north and east too. Some parts of Hertfordshire are connected to the London Underground and London Overground Network. Locations near to Hertfordshire’s main roads – the A1, A1(M), A41, A414, M25, M1 and M11 – or the main railway station are usually most popular with buyers and tenants.
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Hertfordshire has a strong economy. According to Hertfordshire LEP, the region has several internationally significant sectors including life sciences, agri.-tech., advanced engineering and manufacturing, sustainable construction and the creative industries.
Hertfordshire is often known as Herts for short. Hertfordshire is divided into ten different district or borough council areas: Broxbourne. Dacorum. The City of St. Albans. East Hertfordshire. Hertsmere. North Hertfordshire. Stevenage. Three Rivers. Watford. Welwyn Hatfield.
Five places in Hertfordshire have been named as among the best places to live in the country. They are St. Albans, Berkhamsted, Bishop’s Stortford, Much Hadham and Harpenden.
Investors interested in Hertfordshire student accommodation investments should focus on Hatfield where the University of Hertfordshire is located.
Property Values in Hertfordshire
Being so close to London Hertfordshire overall is a high property price area. There are many parts of Hertfordshire where the average house costs over £500,000.
It is possible to find good value investment property in Hertfordshire, however. According to Zoopla, Hertfordshire property prices start at around £90,000.
The most expensive large town in Hertfordshire is St. Albans. The cheapest places to invest in property in Hertfordshire include Watford and Stevenage, where house prices are still only around the national average.
Rental Demand in Hertfordshire
Hertfordshire has a large and very varied rental market offering many types of buy-to-let opportunities to property investors. There is strong demand from locals who cannot afford local property prices and commuters who need easy travel into London but don’t want to live in London.
Although property prices can be high Hertfordshire also offers high rental income potential. An average property in most parts of Hertfordshire will earn an investor over £1,000 per month in rent.
Hertfordshire can offer strong yields for property investors too. While some areas only offer yields of around 2.4% other parts of Hertfordshire can offer almost 5% rental yield.
Property Investment in Hertfordshire
Here’s our guide to property investment in the larger towns of Hertfordshire.
Berkhamsted
Population: 18,500 approximately
Average House Price: £432,507 (Dacorum district)
Berkhamsted is located in north west Hertfordshire in the scenic Chiltern Hills. It is well connected by road and rail and to the M1 and M25. Berkhamsted is a popular commuter spot for those who travel to Hemel Hempstead, Watford and further afield.
Figures provided by the Home.co.uk Market Rent Summary show that the average rent in Berkhamsted is currently £1,038 PCM. Gross average rental yields in Berkhamsted are around 2.5%.
Bishop’s Stortford
Population: 41,000 approximately
Average House Price: £411,399 (East Hertfordshire district)
Bishop’s Stortford is located in a more rural part of Hertfordshire and close to the Essex countryside. The original small market town has grown fast in recent years.
Bishop’s Stortford is a popular place to live for those who want to live in a more rural area yet travel around the region easily. It’s well located for the M11 motorway and Stansted Airport while central London is around an hour away by train.
Data from the Home.co.uk Market Rent Summary show that the average rent in Bishop’s Stortford is currently £1,025 PCM. Gross average rental yields in Bishop’s Stortford are around 2.9%.
Borehamwood
Population: 31,000 approximately
Average House Price: £494,153 (Hertsmere district)
Borehamwood’s claim to fame is that it is the location of Elstree Studios, where many top TV programmes and films are produced.
While Borehamwood is on the fringe of Greater London it retains a small-town feel having its own local shops and amenities. The town has great transport links by road and rail into London and elsewhere and so buying and renting in Borehamwood is popular with those who work around the region.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Borehamwood is currently £1,612 PCM. Gross average rental yields in Borehamwood are around 3.3%.
Cheshunt
Population: 45,800 approximately
Average House Price: £374,804 (Broxbourne district)
Cheshunt is in the Lea Valley on the fringes of Greater London and right by the M25 motorway. It’s a popular town with those who work in London or around the region. It is on the London Overground network and also has fast trains into Liverpool Street in the City of London taking just 26 minutes.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Cheshunt is currently £1,207 PCM. Gross average rental yields in Cheshunt are around 3.6%.
Harpenden
Population: 30,000 approximately
Average House Price: £542,704 (St. Albans district)
Harpenden is located to the north of St. Albans in a semi-rural part of Hertfordshire. Harpenden has good connections by road to the M1 and excellent rail links to and through London on the Thameslink network.
Harpenden is upmarket and a sought after residential spot and one of the highest-priced parts of Hertfordshire.
Figures from the Home.co.uk Market Rent Summary suggest that the average rent in Harpenden is currently £2,671 PCM. Gross average rental yields in Harpenden are around 2.4%.
Hatfield
Population: 29,000 approximately
Average House Price: £403,839 (Welwyn Hatfield district)
Hatfield benefits from a good location on the A1(M) motorway and is also close to the M25.
Hatfield is a busy working and commercial town with a strong local employment market, creating strong demand for property. It’s also a university town with a student accommodation market. The University of Hertfordshire was created in the 1990s and is based on four campuses across Hatfield.
The Home.co.uk Market Rent Summary reports that the average rent in Hatfield is currently £1,413 PCM. Gross average rental yields in Hatfield are some of the best in Hertfordshire at 4.9%.
Hemel Hempstead
Population: 98,800 approximately
Average House Price: £432,507 (Dacorum district)
Hemel Hempstead is a one-time market town that grew fast as a new town in the 20th century.
Hemel Hempstead is an employment hotspot with many large businesses located in the area. Companies located here include Amazon, Bourne Leisure, FFEI, Sopra Steria, Henkel and Britvic. Maylands Business Park is one of the largest in the south east and 20,000 people work there.
Most property in Hemel Hempstead is the newer, post-war property and it is a good value part of Hertfordshire for property investors.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Hemel Hempstead is currently £1,020 PCM. Gross average rental yields in Hemel Hempstead are around 3.7%.
Here’s more information on the buy-to-let property market in Hemel Hempstead.
Hertford
Population: 27,200 approximately
Average House Price: £411,399 (East Hertfordshire district)
Hertford is the county town of Hertfordshire and Hertfordshire County Council County Hall is here. It is one of the county’s smaller towns however with a country town feel.
Hertford has good train links to London via Hertford North and Hertford East and so is attractive to commuters.
Just to the east is the separate small town of Ware. Ware is also a popular commuter town with the train journey to London taking as little as 42 minutes.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Hertford is currently £1,638 PCM. Gross average rental yields in Hertford are around 3.7%.
Hoddesdon
Population: 20,000 approximately
Average House Price: £374,805 (Broxbourne district)
Hoddesdon is located in the Lea Valley close by to rural parts of Hertfordshire. Hoddesdon is mainly a residential town with its own local amenities and popular local schools. Commuters can connect to central London via the nearby Broxbourne station, however. Hoddesdon is a good value area compared to other parts of the county.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Hoddesdon is around £1,168 PCM. Gross average rental yields in Hoddesdon are around 3.3%.
Letchworth Garden City
Population: 33,500 approximately
Average House Price: £374,756 (North Hertfordshire district)
Letchworth Garden City is in North Hertfordshire. Letchworth was established in the early 1900s as a planned town designed to offer the best of both the city and the country to its residents. That makes it a popular place to live, although it isn’t a city in the usual sense of the word.
Letchworth Garden City is a good value area for property investment compared to other parts of Hertfordshire.
Property investors interested in the area might also consider the small town of Hitchin to the west and Baldock to the east.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Letchworth Garden City is currently £1,074 PCM. Gross average rental yields in Letchworth are around 3.3%.
Potters Bar
Population: 22,000 approximately
Average House Price: £494,153 (Hertsmere district)
The small town of Potters Bar is known for its good local amenities and local schools. Potters Bar has a highly accessible location by road (M25 and A1) and rail making it a commuter favourite. Potters Bar has good local rail services to London King’s Cross (20 minutes), Moorgate, Stevenage and Cambridge as well as other places. Brookmans Park and Welham Green are also popular thanks to their stations.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Potters Bar is currently £2,395 PCM. Gross average rental yields in Potters Bar are around 2.7%.
Rickmansworth
Population: 24,200 approximately
Average House Price: £530,436 (Three Rivers District)
Rickmansworth is just inside the M25 close to Watford but still has a semi-rural, small-town feel and is known for the Rickmansworth Aquadrome lakes. Rickmansworth has good train links into London. It is on the London Underground Metropolitan line and also has rail services direct to Marylebone. It is a popular place to buy or rent with those who work in London or nearby Watford.
Rickmansworth is an upmarket spot and a higher-priced part of Hertfordshire.
Data from the Home.co.uk Market Rent Summary shows that the average rent in Rickmansworth is currently £1,778 PCM. Gross average rental yields in Rickmansworth are around 2.9%.
St. Albans
Population: 148,000 approximately
Average House Price: £542,704
St. Albans is one of Hertfordshire’s larger towns. St. Albans is a historic cathedral city and part of the City and District of St. Albans.
St. Albans is known for its Roman history (the Romans called St. Albans Verulamium). It is known for St. Albans Cathedral, the Verulamium Museum, and its independent shops, and cultural and social life which attract tourists and visitors.
St. Albans is a popular and pricier residential location with strong demand for well-priced buy-to-let property.
Data from the Home.co.uk Market Rent Summary shows that the average rent in St. Albans is currently £1,338 PCM. Gross average rental yields in St. Albans are around 3%.
Here’s more information on the buy-to-let property market in St. Albans.
Stevenage
Population: 87,000 approximately
Average House Price: £285,501
Stevenage is one of the largest towns in Hertfordshire. The one-time new town has grown fast since it was set up in the late 1940s. Stevenage has an extensive range of shops and other amenities and a number of large local employers. The town also benefits from excellent transport links on the A1(M) and the main railway line to London and northern England.
Stevenage is a very good value property location and one of the cheapest overall in Hertfordshire. That makes it popular with buyers and investors looking for competitively priced property.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Stevenage is currently £1,115 PCM. Gross average rental yields in Stevenage are around 3.7%.
Here’s more information on the buy-to-let property market in Stevenage.
Watford
Population: 90,300 approximately
Average House Price: £366,961
Watford is just 15 miles north west of central London and as little as 20 minutes into central London by the fastest train. That means Watford is a popular commuter town for those who work in London as well as elsewhere in the south east.
Watford is an employment hotspot providing many jobs. The Watford economy is based mainly around the service sector including financial and professional services, pharmaceuticals, health sciences, creative media, manufacturing and retail and leisure industries with several large companies based here.
Figures from the Home.co.uk Market Rent Summary show that the average rent in Watford is currently £1,136 PCM. Gross average rental yields in Watford are around 3.4%.
This article provides more information on the buy-to-let property market in Watford.
Welwyn Garden City
Population: 48,400 approximately
Average House Price: £403,839 (Welwyn Hatfield district)
Welwyn Garden City was originally established as a garden city in the 1920s. Welwyn has its own local employment but is also a popular residential spot for those who work and travel around the region. Welwyn Garden City has great transport links on the A1(M) and A414 and also fast train links to London and elsewhere.
Figures provided by the Home.co.uk Market Rent Summary show that average rents in Welwyn Garden City, are currently £1,126 PCM. Gross average rental yields in Welwyn Garden City are around 3.1%.
This article provides more information on the buy-to-let property market in Welwyn Garden City.