Wolverhampton may not be the most eye-catching city in the world. Yet, there are many reasons to consider the area for buy-to-let investment.
Population
Wolverhampton has one of the largest populations in England. The number of people surpasses 251,000. In addition, the West Midlands had a population of nearly six million.
In 2023, UK homes available for rent were 20-40% below pre-2020 levels. This means more people are competing for rental accommodation. As such, a big city like Wolverhampton will have a ready-made tenant base willing to pay premium rental figures. This will help investors see a better return on their investment.
Attractive to Students
Wolverhampton is one of the country’s new university cities. As such, buy-to-let investors may have luck with student accommodation and HMO properties.
The University of Wolverhampton started in 1992. The area offers low living costs and cheap accommodation. It is also within easy reach of Birmingham city centre – good for those student nights out.
Regeneration
Wolverhampton has gone through a period of decline in recent times. However, local authorities have many regeneration schemes in place. This will make the area more attractive to investors and tenants alike.
- The City of Wolverhampton estimates £4.4 billion will be invested in the area in the near future.
- Recent and upcoming regen schemes include:
- Wolverhampton Interchange is a hub for buses, trains, and metro.
- The i9 and i10 office developments
- Westside: a multi-million-pound development to introduce leisure attractions to the city centre
- Brewers Yard and Canalside: A New City Living Scheme
- Pendeford Business Park: business spaces that attract new companies to the area.
- The i54 business park: a new employment site responsible for nearly 3,000 new jobs
Investors may be able to find bargain investment opportunities in regeneration hotspots. Those properties will then grow in value, which can allow for greater capital appreciation once the area becomes more desirable.
