Burley or Kirkstall – which is better for a Buy To Let investment?

Should you be investing in Burley or Kirkstall when it comes to property?

Kirkstall covers a slightly larger geographic area but Burley has a higher concentration of houses. Each have a similar number of homes at around 5000 each. Burley is closer to the city centre and is known for its traditional Leeds style terraced properties.  Kirkstall is slightly farther away from the city centre in a north westerly direction travelling along the A65/Kirkstall Road, and has more semi detached properties. For these reasons Burley tends to attract a younger population and Kirkstall tends to attract more families.

The average property price paid in Burley over the past 12 month was £164,957 whilst the average asking rent this month was £974 (not including rooms). This gives an average yield 7.09% which is very healthy indeed.

The average property price in Kirkstall over the past 12 months was £172,005 whilst the average asking rent this month was £747pcm (not including rooms). This gives a decent average yield of 5.21%.

Given the average yield is over 26% higher for Burley, that gives a strong argument on which of the two towns to buy in. However it is worth considering that there are around 3.5 times more available properties to rent in Burley than in Kirkstall this month illustrating the added competition here. I also think this is likely to mean that voids in Burley are likely to be higher than in Kirkstall and this should be taken into consideration.

It is likely the difference in the yield is in part down to the average comparative size of the properties in each town. Burley’s terraced homes are generally larger and can accommodate more tenants than Kirkstall’s semi detached family homes, which often means they can charge more rent. Families may be considered a more stable long-term option by Landlord’s however.

If you are thinking of buying a property locally, come in and have a chat with me first.

Burley

  • Burley avg rent £974 taking out rooms
  • Avg price paid in last 12m from 101 sales (zoopla) £164,957
  • Zoopla ZED index £179,802
  • 09% yield on prices paid
  • 50% yield on ZED index
  • +£1565 pa increase / 0.88% 12m
  • But much more competition and higher voids

Kirkstall

  • Kirsktall avg rent £747pcm taking out rooms
  • £172,005 avg price paid in last 12m from 99 sales
  • £178,338 ZED
  • 21% yield on prices paid
  • 02% yield on ZED
  • +£1959 1.11% increase 12m
  • But much less competition, lower voids