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What Is Off-Plan Property?
Off-plan property is exactly what it sounds like. You buy a property before it is fully built. Off plan properties in places like York city centre have become an incredibly attractive option. That too for savvy investors looking to maximise their returns.
But why?
Firstly one of the big draws of off plan properties is getting in early. With this you can get properties at prices lower than when the development is completed.
Another perk?
You often have the chance to tailor the property to suit future tenants’ needs. Maybe they would love a balcony or would prefer a layout with two bedroom units.
This can also include a space for either a garden or private parking. Developers are usually open to small changes if you are early in the process. It is all about standing out in a competitive rental market.
Especially when you are targeting professionals who value easy access to amenities like local shops and transport hubs.
Why Invest in York’s Off Plan Property
Competitive Property Pricing
York’s property market is proving to be a standout in the UK. It offers a compelling mix of affordability and growth. The average purchasing cost of the houses in York comprises £328,000 as of August 2024.
This marked a 2.3% increase in house prices this year as compared to last year. This regular upward trend shows the city’s strong potential for capital appreciation. That too particularly true for investors looking at off plan properties.
Have a look at the graph below-
Source: ONS
For each property type, average prices as of August 2024 in York were:
- Detached properties: £518,000
- Semi-detached properties: £342,000
- Terraced properties: £288,000
- Flats and maisonettes: £206,000
I feel the most attractive element here is the ability to secure properties in prime locations. This can be the city centre or areas having close proximity to key amenities. By investing early in new developments you can often lock in lower prices.
That too compared to completed properties. This strategy reduces your upfront costs. And positions you to benefit from price rises during construction and upon completion.
The diversity in York’s property market is another advantage. You can go ahead with a sleek apartment with modern finishes or a townhouse with either a garden or private parking.
There is a wide range of options to suit various investment goals. Many properties are strategically located within walking distance of local shops and other conveniences. If you ask me as an expert then these features really add even more to the appeal.
Higher Rental Demand
York’s rental market is thriving with demand driving consistent growth in rental prices. The average monthly private rent in the city was £1,107 as of September 2024.
This showed a significant increase of 10.5% from September 2023. This sharp rise underscores the strong appeal of York properties for tenants. Particularly in high-demand areas like the city centre.
We analysed that this surge in rental prices is fuelled by York’s status as a prime location for professionals. Especially those seeking easy access to amenities plus workplaces and transport links. Some properties also command even higher rents.
These are-
- Properties located within walking distance of local shops and services
- Properties with desirable features like two-bedroom units or parking.
By number of bedrooms there are in a property the average rents as of September 2024 in York were:
- One bedroom: £802
- Two bedrooms: £997
- Three bedrooms: £1,178
- Four or more bedrooms: £1,640
Taking the data instead by property type, average rents were:
- Flats and maisonettes: £931
- Terraced properties: £1,097
- Semi-detached properties: £1,190
- Detached properties: £1,450
Source: ONS
For investors this presents a valuable opportunity. York’s market shows no signs of slowing down. This rise in rental demand highlights the potential for reliable passive income and long term wealth generation.
Ongoing regeneration
Here are some ongoing regeneration projects in York:
| Project Name | Investment Amount | Description |
|---|---|---|
| York Central | £1.1 billion | One of the UK’s largest and most exciting city centre regeneration schemes. It is perfectly located next to the city’s railway station and the National Railway Museum. The project has world-class ambition which is set to transform 45 hectares of brownfield land into a brand-new quarter for the city. |
| Castle Gateway | Around 10 million | This masterplan includes creation of a multi-storey car and coach park. It is planned at St George’s Field. Alongside the Castle Mills development featuring affordable apartments, a public square, and a pedestrian/cycle bridge linking Piccadilly to citywide routes. |
| Upgrades to York Outer Ring Road | £38 million | The York Outer Ring Road scheme includes major highway redevelopment including the dualling of the A1237 and safer pedestrian and cycle routes to unlock community access and encourage safe and green travel. |
| Haxby Station Project | £24 million | The new station will feature a fully accessible footbridge with lifts and steps connecting the platforms, bike shelters, a 154-space car park with EV charging, a taxi rank, and a bus stop. Shared-use paths will link the station to Haxby’s residential areas, making it convenient for pedestrians and cyclists. |