Coventry – a buy-to-let opportunity?

David Banks
Authored by David Banks
Posted Monday, July 26, 2021 - 6:04am

Since a temporary reduction to stamp duty rates was introduced by the Government in July 2020, house sales (and prices) have been on the rise to a significant extent.

However, with the nil rate for stamp duty remaining at £250,000 until 30 September 2021 and the introduction of the Government’s mortgage guarantee scheme in March 2021 backing high loan to value (LTV) mortgages (of over 90%), it is still a great time to consider buy-to-let investments. 

So where is a good place to purchase a buy-to-let property to get a healthy return on your investment, a good pool of tenants, decent rental yields and properties prices which won’t see you paying over the odds?

Enter, Coventry in the West Midlands.

The city dates back to Anglo Saxon times, when it was a settlement named “Coffantree” or “Coffa’s tree”. Later, Coventry was a key player during the Industrial Revolution although its role in the manufacture of war munitions made it a target for significant bombing raids by the Luftwaffe during the Blitz and much of the town’s historic architecture was destroyed. However, the spire and shell of the original Coventry Cathedral sill remain and are a focal point in the city, with the newer Cathedral built right next door.

Today, Coventry has much to recommend it as the official UK Capital of Culture 2021 and the city has made a regular appearance on the list of best UK cities to live in and work in during the past few years. So whilst many landlords look to the larger, neighbouring city of Birmingham when it comes to buy-to-let properties, Coventry – with its great commuter links, strong rental market and a large student population for both Coventry University itself and universities in nearby Warwick, Birmingham and Leicester – makes a great buy-to-let investment.

But it is not just the great range of tenants and healthy rental returns that makes Coventry a good choice for buy-to-let property investors.

When it comes to lifestyle, there are also plenty of retail and leisure amenities locally in the bustling town centre, plus an impressive range of out-of-town retail parks, FarGo Village, a mecca for independent shops and eateries and the 186 stalls which make up Coventry Market selling everything from fresh local produce to clothes and jewellery. Entertainment venues the Belgrade Theatre and Ricoh Arena play host to various large-scale events and international artists and sport is also huge in Coventry, with facilities for rugby, football, ice hockey, cricket, speedway and athletics to name but a few! 

The city benefits from stunning countryside on the doorstep too in the shape of the Peak District National Park and the stunning Cotswolds AONB. There are numerous parks and gardens within Coventry itself as well, such as Coombe Abbey Park which still features designs introduced by the famous landscaper ‘Capability’ Brown, Greyfriars Green, Lady Herbert’s Gardens and the War Memorial Park.

Coventry is also well connected to the surrounding villages, towns and cities of the Midlands, Warwickshire and Leicestershire via road and rail. The town’s location provides easy transport links for drivers via the A45, A46, M1, M6 and M69 motorways with the nearby M45 and M40 providing alternative connections to London and the South East.

Coventry’s main train station is on the West Coast Main Line with regular services to Leamington Spa, Birmingham, London, Wolverhampton, the North West, Scotland and south to Bournemouth and Southampton amongst many other destinations. There are also three further local train stations – Coventry Arena, Canley and Tile Hill – and the city has a comprehensive bus network serving the local towns and villages as well. For travelling further afield, Birmingham International Airport is only 16 minutes away and  East Midlands Airport less than 45 minutes’ drive.

For families, there is a great range of state, academy, independent school and specialist college options plus a range of family friendly activities and facilities such as The Wave water park, the Herbert Art Gallery and Museum, the Lunt Roman Fort and the Coventry Music Museum.

Perhaps most importantly, Coventry is also competitively priced when it comes to property. Indeed, the average property price in Coventry over the past year was £219,238. More affordable than the national average of £254,624, the West Midlands region (£262,065) – particularly pricey Warwickshire (£330,013) and Worcestershire (£305,508) – and the West Midlands County (£238,486) overall. Pricey local hotspots like Little Aston (£736,625) Dorridge (£626,544), Hampton-In-Arden (£615,888) and Knowle (£547,131) in particular.

When it comes to the types of property on offer, the average price you would expect to pay for a terraced house was £183,575, with semi-detached properties costing £239,402 and detached properties around £375,000 over the last 12 months. Of course, if you are willing to get stuck in with a bit of DIY you could pick up a bargain for a lot less, making Coventry a great opportunity for buy-to-let investments.

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