York’s Total Economic Value
Annual Visitors
Employment Rate
Average House Price (December 2024)
York is an ancient city in the UK. Its economy is strong, and the real estate market is growing. You can find great options for investing in real estate in York. Read this guide to find out why York is a great place to buy rental property. It has a lot of room to grow in the long term and can be rented out in the short term.
Okay, let’s look into why York is one of the best places in the UK to buy a house in 2025!
City Gate
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Property Price
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Rental Yield
Education, technology, and finance drive York’s economy, creating many jobs. Large companies like Aviva, Network Rail, and York offer stable jobs.
Strong jobs imply more homebuyers, which is good for real estate investors.
York’s population is growing, with more students, professionals, and families moving to the city. In 2024, York had a population of about 215,000.
In 2025, York’s population is expected to grow. More people means a higher demand for rental homes. This is especially popular in areas like the city centre, South Bank, and Clifton.
York has lower housing prices than London and Manchester. York’s average property price in December 2024 was £303,000.
This exceeds the UK average of £290,000. Price is much lower than in many large cities. York housing prices have climbed over 10% in five years, indicating growth potential.
York has a strong rental market. The average rental yield is around 5-6%, depending on the location and property type.
Rental demand in York is high because students, professionals, and families want homes near work, transport, and universities.
Average Rental Yield
York Central is redeveloping railway land into residences, workplaces, and public spaces for £1.1 billion.
This project should boost the local economy by £1.2 billion. It will boost home values and draw renters and buyers.
Local Economy Boost
York’s housing deficit drives demand. Planning restrictions hinder new constructions. Property prices and rental demand should remain high. Over time, investing in developing areas pays off.
York has historic appeal, economic progress, and high rental demand. The city offers outstanding student housing, short-term rentals, and long-term rentals.
York offers a mix of historic charm, economic growth, and strong rental demand. Whether you want to invest in student accommodation, short-term lets, or long-term rentals, the city provides great opportunities.
Over the past decade, York’s property market has experienced notable growth. In December 2014, the average house price in York was approximately £200,000. By December 2024, this figure had risen to £303,000, marking a 51.5% increase over ten years.
This project is expected to add £1.2 billion to the local economy. It will also increase property values and attract more renters and buyers.
York’s housing market has been strong through many economic downturns. During the 2008 financial crisis, property prices dropped a lot in many parts of the UK.
However, house prices in York mostly stayed the same, with only a small drop. After that, the market got better quickly. Between 2020 and 2022, prices went up by about 23.1%.
Several neighbourhoods in York are poised for significant growth, driven by planned developments and infrastructure projects:
The evolving preferences of residents and investors are leading to the rise of new property types in York
Most people want sustainable and energy-efficient homes. In England, the number of new homes with solar panels has tripled in a year. It rose from 13% to 42% by the end of 2024. This increase is mainly due to the “Part L” energy regulations introduced in 2023.
The UK green building market is set to grow from $6.6 billion in 2024 to $17.1 billion by 2033. This presented an annual growth rate of 11.1%.
Investors in eco-friendly developments can take advantage of this growth and meet the rising demand for sustainable living.
Many students and young professionals are looking for affordable housing. As a result, co-living spaces with shared amenities are becoming more popular. By early 2025, the UK had 8,425 beds in large co-living developments, making up 7% of all Build-to-Rent (BTR) properties.
The sector is growing rapidly. Another 16,534 beds are under construction or approved for planning, while 9,694 beds are in the early planning stages. This growth indicates a strong demand for co-living arrangements, which presents attractive opportunities for investors.
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
York consistently ranks among the UK’s most desirable cities for families and professionals. The location offers an exceptional quality of life, robust job opportunities, and a rich cultural heritage.
The job market in York is very active, and a lot of people are working. New data shows that 83.6% of York’s working-age people are employed, which is higher than the national rate of 75.5%. The city’s economy is very diverse, with jobs available in many fields, such as finance, science, education, and tourism.
Aviva and the University of York are two of the city’s major employers that create a lot of job chances in a wide range of fields.
Residents of York enjoy a high standard of living, characterised by safety, excellent educational institutions, and comprehensive healthcare services.
The city is now the 51st least deprived district in England. It has moved up 17 places since 2015, showing improvements in social and economic conditions.
The city offers a rich array of amenities that cater to a wide range of interests. enhancing the overall lifestyle of its residents.
Tourism plays a pivotal role in shaping York’s economy and housing landscape. While it brings substantial economic benefits, it also influences property demand and availability, presenting both opportunities and challenges for the local community.
In 2023, York welcomed approximately 8.9 million visitors, contributing £1.7 billion to the local economy.
This increase shows that York is a top tourist destination. Its rich history and cultural attractions attract millions of visitors each year.
The surge in tourism has led to a notable increase in short-term rental properties. It is facilitated by platforms like Airbnb.
Tourist accommodations boost the local economy but also impact housing availability, as properties with planning permission often command higher prices due to reduced competition. The rise in short-term rentals limits long-term housing options for local residents.
While tourism significantly boosts York's economy, it also presents challenges for the local community. Residents in popular tourist areas worry about being priced out of the housing market. Wealthy families buying holiday homes have made this problem worse.
The rise in short-term rentals, with over 11,000 in Devon alone by December 2022, has contributed to concerns about overcrowding, litter, and strained infrastructure. Frustrated residents are calling for measures like tourist taxes to address the impact on their quality of life.
York’s strategic location and comprehensive transport infrastructure significantly enhance its appeal to residents, businesses, and investors.
York serves as a pivotal hub in the UK’s transport network, offering excellent connectivity to major cities. The city lies at the intersection of several key roads. This includes the A19, A59, A64, and A1079.
They provide direct links to cities like Leeds, Manchester, and Newcastle. The A64 road connects York to both the A1(M) and the M1 motorways, facilitating efficient road travel across the country.
Within the city, York boasts a robust transport system designed to facilitate easy movement. The city operates an extensive bus network, with services provided by companies such as First York and Transdev York.
These services cover urban and rural areas, ensuring comprehensive coverage. Moreover, York has implemented one of the largest zero-emission park-and-ride networks in the United Kingdom, underscoring its commitment to sustainable transport.
To alleviate city centre congestion, York offers six park and ride sites strategically located around the city. These facilities enable visitors to park their vehicles and complete their journey into the city centre via dedicated bus services, promoting a more sustainable and convenient travel option.
Moreover, York encourages active travel through well-maintained cycling routes and pedestrian-friendly pathways, promoting healthier lifestyles and reducing reliance on motor vehicles.
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York’s diverse property market presents a range of investment opportunities, each catering to different investor preferences and market demands.
Investing in off-plan properties—those purchased before construction is completed—can offer several advantages. Investors often secure properties at prices below market value, anticipating appreciation upon completion, which can lead to significant capital gains.
Early buyers may also have the opportunity to influence design aspects, tailoring the property to market preferences, thereby enhancing its appeal to future tenants or buyers. However, it’s essential to conduct thorough due diligence to mitigate risks associated with construction delays or changes in market conditions.
York’s status as a top tourist destination makes short-term let properties a lucrative investment. Properties listed on platforms like Airbnb can command premium nightly rates, especially during peak tourist seasons, leading to higher overall returns.
Owners can adjust pricing and availability based on demand, optimising occupancy rates and income. Investors should be mindful of local regulations governing short-term rentals to ensure compliance and sustainability.
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With esteemed institutions like the University of York and York St John University, the demand for student housing remains robust. A steady influx of domestic and international students ensures ongoing need for quality accommodation.
Student accommodations can provide reliable rental income, often secured through fixed-term leases. Proximity to university campuses and amenities enhances the attractiveness of such investments.
Investing in new build properties offers several compelling benefits. Contemporary designs often include features like energy-efficient systems, smart home technology, and high-quality finishes, appealing to a broad tenant base. New constructions typically require less immediate maintenance, reducing operational expenses for investors.
Additionally, new builds may come with warranties, providing further financial assurances. In short, York’s excellent connectivity and diverse property investment options make it an attractive prospect for investors seeking stable rental returns and growth potential.
Discover your property’s earning potential with our Buy-to-Let Calculator.
York’s diverse neighborhoods offer various opportunities for property investors, each with unique characteristics and potential returns.
Investing in York’s city centre is highly desirable due to its proximity to amenities, cultural attractions, and historical landmarks. This area attracts professionals, tourists, and students, ensuring strong rental demand. Properties here often command higher prices but offer the potential for substantial rental yields, particularly for short-term and holiday lets.
Known for its vibrant community and Victorian-era homes, South Bank appeals to families and young professionals. The area boasts a mix of residential properties, local shops, and parks, providing a balanced urban lifestyle. Investors can find properties with character, and the community atmosphere contributes to steady rental demand.
Clifton offers a mix of residential options and green spaces, making it attractive to a broad tenant base. Its proximity to the city centre and local amenities enhances its appeal. The area is popular among families and professionals, providing opportunities for investors seeking properties with consistent rental demand.
To get a detailed overview of the best neighbourhoods to Invest in York, along with prices and rental yields, read our article.
Securing appropriate financing is crucial for successful property investment. Various options are available to suit different investment strategies.
Buy-to-let mortgages are specifically designed for investors aiming to rent out properties. Typically, lenders offer up to 75% loan-to-value (LTV), meaning investors need a 25% deposit. Interest rates and terms vary, so it’s essential to compare offers from different lenders. Some lenders may require proof of rental income potential to ensure the property’s profitability.
Investors using a buy-to-let mortgage calculator can estimate monthly repayments, potential rental yield, and overall profitability. This tool helps assess different mortgage options and make informed investment decisions.
Beyond traditional mortgages, investors can explore alternative financing methods:
The UK government offers programs to assist property investors:
It’s advisable to consult with financial advisors or mortgage brokers to determine the most suitable financing options tailored to individual investment goals and financial situations.
Investing in York’s property market offers promising opportunities, but it’s essential to be aware of potential risks and challenges to make informed decisions.
Property values can fluctuate based on economic conditions. Economic downturns, changes in interest rates, and shifts in employment levels can influence property prices. It's crucial to conduct thorough market research and maintain a long-term investment perspective to mitigate the impacts of market volatility.
Potential implementation of tourist taxes and restrictions on short-term rentals may affect returns. Local authorities might introduce regulations to control the number of short-term rental properties, impacting rental income for investors relying on platforms like Airbnb. Staying informed about local policies and engaging with local councils can help anticipate and adapt to these changes.
Ongoing expenses can impact profitability. Property maintenance, repairs, and management fees are recurring costs that investors must account for. Unexpected repairs or increased maintenance requirements can affect cash flow. Budgeting for these expenses and conducting regular property inspections can help manage and mitigate these costs.
To enhance the profitability of property investments in York, consider implementing the following strategies
Investing in buy-to-let property in York and around North Yorkshire is like unlocking a high-potential asset in the property market in York—where demand fuels strong net yields. With a thriving rental scene and limited supply, smart investors can secure lucrative investment advice that turns property into long-term wealth.
York’s property market offers promising investment opportunities. At Flambard Williams, we provide personaised property investment solutions to help you maximise returns.
Contact us today at +44 (0)207 183 0646 or info@flambardwilliams.co.uk to schedule your personalised consultation.
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Rental yields in York vary depending on the property’s location and type. As of recent data, areas close to the city centre and universities tend to offer higher rental yields, making them attractive for investors seeking steady rental income.
Over the past five years, property values in York have increased by approximately 10%, reflecting a stable growth trend. This consistent appreciation underscores the city’s robust property market.
Yes, significant projects like the York Central development are underway, aiming to transform underutilised land into vibrant residential, commercial, and cultural districts. Such initiatives are expected to enhance infrastructure and boost property values in the vicinity.
York attracts approximately 8.4 million visitors annually, contributing around £765 million to the local economy. This robust tourism sector drives demand for short-term rental properties, offering lucrative opportunities for investors.
Investors can explore various financing avenues, including buy-to-let mortgages, alternative financing options like crowdfunding, and government incentives such as the Help to Buy scheme. Each option has its criteria and benefits, so it’s essential to assess which aligns best with your investment strategy.
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