Areas of Wakefield: Buy-to-Let Property Investment Hotspots
Wakefield might be one of Yorkshire’s smallest cities, but it’s big in one way – it offers excellent value for money for property buyers and property investors. Investors who buy property in Wakefield can get much more for their money compared to Leeds just a few miles down the road. Here’s what you need to know about property investment in Wakefield.
Why Invest in Wakefield
Wakefield is a small but historic cathedral city in West Yorkshire with a population of around 109,766, as of the 2021 Census. However, the wider Wakefield Metropolitan District Council area, which includes surrounding towns, has a population of approximately 345,000.
Wakefield's traditional industries included coal mining and engineering, but its economy has since diversified into light manufacturing, services, and logistics. The city is home to several large business parks and well-known companies such as Teva UK, Card Factory, Haribo, and Coca-Cola. It also boasts excellent transport links, situated near the M1 and M62 motorways and the East Coast Main Line railway, with London just a 2-hour train ride away.
The city offers good accessibility to Leeds, located only 10 miles away, making it ideal for commuters seeking more affordable housing options. Wakefield also has impressive city amenities, including two large shopping centres, The Ridings and Trinity Walk. Additionally, the city is known for its cultural attractions, such as Wakefield Cathedral, Sandal Castle, and the National Coal Mining Museum.
An exciting development in the city is the regeneration of the Rutland Mills complex, which will be transformed into a modern, cultural space with offices, music studios, and a boutique hotel. This project is expected to be a significant boost to the local economy. Another notable project is City Fields, an urban extension east of Wakefield, which will include 2,500 new houses, shops, restaurants, leisure amenities, and industrial units.
With its central location, excellent transport links, growing economy, and cultural offerings, Wakefield presents a compelling investment opportunity, particularly in the property market. The city offers excellent value for money for property buyers and investors, with house prices well below the national average and the potential for high rental yields.
Transport Links
Wakefield benefits from excellent transport links, making it easily accessible by road, rail, and even air travel. The city is situated near the M1 and M62 motorways, providing convenient road access to the rest of the UK.
For rail travel, Wakefield has two main stations: Wakefield Westgate and Wakefield Kirkgate. The train service from these stations to London takes approximately two hours, and Leeds can be reached in just 12 minutes. The city is also part of the East Coast Main Line railway, providing further connectivity.
There are ambitious plans to link Wakefield with other major towns and cities in West Yorkshire through a multi-billion-pound mass transit scheme, which, as of May 2024, is still under consultation. This proposal includes up to nine separate lines spanning the region, with a range of advanced transportation methods being considered, from advanced bus rapid transit to light rail and ultra-light rail systems.
Additionally, the government's Transforming Cities Fund aims to improve transport infrastructure in Wakefield's city centre, with a focus on reducing traffic, enhancing cycling and walking routes, and improving bus operations. This includes a new cycle route between Wakefield Kirkgate Rail Station and the city centre, as well as improved access for buses approaching from the north.
These initiatives aim to make travel in and around Wakefield more efficient, sustainable, and accessible for all.
Property Values
Property values in Wakefield continue to show a general upward trend, with some fluctuations. As of May 2024, the average property is sold for £376,000, representing a significant rise over the previous 12 months.
The current average listing price is £268,651, an increase of -2% over the last six months. On average, detached houses fetch an average of £366,438, and flats average £138,000.
Compared to nearby Leeds, Wakefield offers more affordable housing options, with average house prices around 20% lower.
Wakefield's property market presents an attractive opportunity for investors and homebuyers, with a mix of established and new-build properties available at competitive prices.
Average Asking Price by Postcode Area
Last updated: May 2024
Data from HM Land Registry
| Postcode District | Average Property Price |
|---|---|
| WF1 | £228,639 |
| WF2 | £274,741 |
| WF3 | £281,221 |
| WF4 | £268,868 |
| WF5 | £240,188 |
Rental Demand
According to Home's Market Rent Summary, the average rent in Wakefield is currently (May 2024) £832 PCM. On average, a 1 bedroom property will cost £695 PCM. A 2-bed will cost £855 PCM. A 3-bed will cost £1,103 PCM. And a 4-bed will cost £1,349.
With a fast-growing population and a situation where demand already outstrips supply, Wakefield has high rental demand with is getting higher. And with yields as high as 7%, it offers some attractive prospects for property investors and buy-to-let landlords.
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: May 2024
| Postcode District | Average Rental Yield |
|---|---|
| WF1 | 4.2% |
| WF2 | 3.9% |
| WF3 | 3.9% |
| WF4 | 4.2% |
| WF5 | 3.7% |
Landlord Licensing
As is true for all local authorities in England and Wales Wakefield Council, all HMOs in the council area must be licensed. The council has also introduced Article 4 Directions in conservation areas in the city.
Although as of May 2024, there is no plan to introduce Selective Licensing in the city, the council are within their rights to introduce this at any time, as many other local authorities have done. Landlords looking to purchase property in Wakefield are advised to watch for any new announcements.
HMO Licenses
The Housing Act 2004 enforces a mandatory licensing scheme for certain Houses in Multiple Occupation (HMOs). From 1 October 2018, the HMO licensing scheme was extended to include properties occupied by five or more people, making up more than one household, who share facilities or amenities such as a kitchen or bathroom.
Licenses can be acquired from Wakefield Council, with a licence for a 5-bed HMO costing £670.
Article 4 Directions
Article 4 Directions are used to control works that could threaten the character of an area of acknowledged importance, such as a conservation area. Wakefield Council has implemented Article 4 Directions in some Conservation Areas.
Article 4 Directions currently apply in Heath, Wakefield, St Johns, Wakefield and Whitwood Terrace, Castleford, meaning planning permission must be sought on all development projects.
The Wakefield Responsible Landlords Scheme
The Wakefield Responsible Landlords Scheme is a voluntary and free scheme that was launched in 2010. It was developed with local landlords and has the support of the National Landlords Association and the Residential Landlords Association. Landlords must pass a test of competence, similar to the criteria for mandatory licensing of high-risk bedsits and flats.
Benefits of membership include being able to demonstrate a commitment to good standards to prospective tenants and staying ahead on industry news and local announcements. Being a member will also get you money off the HMO license, meaning a £675 standard fee would become a £540 fee.
The Best Places to Live in Wakefield
Wakefield has a variety of desirable neighbourhoods and nearby towns and villages that offer a range of lifestyles, from bustling city centres to quaint rural villages. Here are some of the best places to live in and around Wakefield:
- Wakefield City Centre: Wakefield's city centre offers a balance of convenience and culture. It provides easy access to a range of bars, restaurants, sports venues, and cultural attractions. Wakefield also boasts excellent public transport links to the rest of West Yorkshire and the UK.
- Sandal: Located just a few miles outside Wakefield, Sandal is an ancient settlement mentioned in the Domesday Book. It offers a peaceful lifestyle with great local amenities and easy access to green spaces like Pugneys Country Park and Newmiller Dam Country Park.
- Ackworth: A quiet village with a rich history, Ackworth is home to one of only seven Quaker Schools in England. It's also a short drive from Nostell Priory, a National Trust Georgian mansion with stunning gardens. Ackworth is ideal for families, with good schools and parks nearby.
- Ossett: Ossett is a small town just 10-15 minutes from Wakefield, offering a good balance of accessibility and a quieter lifestyle.
- Horbury: Horbury is a slightly more expensive option, located near Wakefield. It provides a range of amenities and is known for its stunning scenery and traditional village feel.
- Woolley: This village is situated a few miles south of Wakefield city centre and is known for its beautiful scenery and charming village atmosphere. The nearby Woolley Grange estate offers modern homes.
- Barnsley: Barnsley is a bustling town just a few miles south of Wakefield, with excellent motorway and railway links. It offers a blend of history and culture and is ideal for those seeking a more urban environment.
- Newmillerdam: This idyllic and picturesque village, located 4.5 miles from Wakefield city centre, is home to hidden gems like the Lakeside Café and La Fortezza.
Property Investment in Wakefield
Here’s our guide to property investment in and around Wakefield.
Wakefield City Centre
Buyers and tenants are attracted to Wakefield city centre, thanks to its great amenities including shops, bars and restaurants plus easy access to Wakefield Westgate and Wakefield Kirkgate railway stations.
Wakefield city centre offers property investors a range of properties including budget terraced houses and smart townhouses in locations such as St. John’s and Thornes. There are also several city-living apartment developments in locations such as Merchant Gate and the Wakefield Waterfront which might appeal to buy-to-let landlords.
Northern Suburbs
North Wakefield suburbs include Wrenthorpe, Alverthorpe, Kirkhamgate, Outwood and Newton Hill. These areas offer great access to the M1 and M62 for commuters to Leeds and further afield, plus the Wakefield 41 Business Park where several large employers are located.
The north side of Wakefield is a mid-priced property area and particularly appeals to family buyers and tenants.
Eastern Suburbs
The east Wakefield suburbs include Eastmoor, College Grove, Pinders Heath and Stanley. The new City Fields housing and commercial development is also making this a fast-expanding area of Wakefield. The large Pinderfields Hospital is also located here.
The eastern side of Wakefield is generally a lower-price property area, offering investors good value property.
Southern Suburbs
South Wakefield's suburbs include Belle Vue, Agbrigg, Kettlethorpe and Portobello which mainly offer traditional terraced houses and ex-local authority properties offering good value buy-to-let opportunities to investors. Durkar and Crigglestone are mid-market family areas offering easy access to the M1 at junction 39.
Further out areas such as Sandal (also Sandal Magna), Walton and Newmillerdam fringe quiet countryside areas and are some of Wakefield’s more upmarket and expensive residential districts.
Western Suburbs
Suburbs to the west side of Wakefield include Lupset and Flanshaw, both of which offer large social housing estates and traditional terraces, offering cheap property investments. Further to the west of Wakefield, the separate small towns of Ossett and Horbury offer good access to the city but also have their own town centres, with local shops, schools and other amenities. They are popular with family buyers and tenants.
Outer Districts
Other districts which make up the wider Wakefield area include Pontefract, Knottingley, Featherstone, Castleford, Normanton and Hemsworth. The first five of these towns together are also known as the Five Towns area. The historic town of Pontefract has good local amenities and is known for Pontefract Castle, Pontefract Races and the Pontefract Liquorice Festival.
Castleford and Normanton, in particular, have easy access to the many business and industrial parks along the M62, so landlords might look at buy-to-let opportunities letting to tenants who work in these locations.
The Wakefield outer districts offer a range of property opportunities. The main towns are generally lower-mid price property areas offering good value houses and flats but there are also some popular commuter villages where prices are higher.