Coventry is the fastest expanding city outside of Greater London, has two universities in a relatively small space and a booming futuristic technology industry, with major plans for the world's first airport for flying cars and delivery drones to be built there this year. In the north of the city stands the Ricoh Arena, home to CCFC and the Wasps Rugby Club, and in the south of the city stands the Jaguar Land Rover Global Headquarters where major upcoming investments and developments are expected to create more jobs . Coventry was awarded City of Culture 2021, earning the city millions in funding to transform the city centre, and a £100m renovation of the city centre is expected to unlock £568m for the city. All of these things signal exciting things for the future of Coventry and more lucrative investments as they come to fruition.
There's also a housing shortage in Coventry currently. From 2004-2014 the population of the city rose by just shy of 40,000, however in the same period of time just over 9,000 new homes were built. While this isn't necessarily a good thing for the city, the value of houses appreciate more in a shortage due to high demand and limited supply, so it may be wise to get in fast before prices shoot up even higher.
Things to consider
The first thing you want to consider when purchasing a buy to let property in the city of Coventry would be what kind of property you want, what demographic you're looking to target and following on from that what area you want to consider.
With Coventry being home to two large universities and 50,000 students, student HMOs are a very popular option. Canley is a popular area for Warwick University students, as it's in close proximity to the campus. Earlsdon, on the other hand, is popular for both CU and Warwick students, as it's in close proximity to the CU campus in the city centre however it has a direct bus route to the Warwick campus.
For medium sized family properties, the western suburbs Eastern Green, Allesley and Coundon are great options, with good schools, large parks and beautiful surroundings all found nearby. These areas typically have a yield of around 5%.
The suburbs with the best yields in the city reaching just shy of 6% are in the north of the city, covering Radford, Holbrooks, Foleshill, Longford, Alderman's Green, Neal’s Green, Hawkesbury and Keresley. These areas have great transport links to the city centre, as well as links to neighbouring towns Nuneaton and Bedworth.
It could be worth considering the Coventry Gateway Scheme when choosing your area. The scheme is a £140 million project by property developers SEGRO, who plan to create 3.7m square feet of industrial and logistics space just south of Coventry Airport, and they hope to provide up to 14,000 jobs for the city. This may be something to keep your eye on, because if the fast developments in this area really take off then they could make property in the surrounding areas particularly in demand and therefore more profitable.
CLAS (Coventry Landlord Accreditation Scheme) is a free to join scheme introduced by Coventry City Council that provides free education and training, cheaper property licences and more. Potential tenants may also be more likely to trust an accredited landlord which is an added bonus. More information on the Coventry Council website here.
If investing in Coventry is something you'd like to get involved in but don't know where to start, then don't hesitate to get in touch with us. We can assist with sourcing properties in relevant areas, finding tenants, property management and more. Give the office a call on 02475094040 or alternatively pop in for a chat at 18 Holbrook Lane, CV6 4AB.
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