York is one of the UK’s most desirable cities—not just for visitors, but for people looking to live, work and invest here long term. With a rich blend of historic charm, a strong local economy and a diverse range of properties, it’s no surprise that York’s rental market continues to thrive.
Whether you’re a seasoned landlord looking to grow your portfolio or a first-time investor searching for your next opportunity, this guide explores the best areas to invest in York’s buy-to-let market—and why now could be a smart time to act.
Why invest in York?
Consistent demand
York’s housing market remains resilient, even in the face of national fluctuations. A growing population, world-class education institutions, and strong tourism make York a magnet for tenants. The city offers something for everyone—from professionals and students to families and retirees—which supports a steady and diverse rental market.
Strong rental yields
According to the latest data from Zoopla’s Rental Market Report and Rightmove’s House Price Index, York’s average rental yield sits comfortably between 4.5% and 6%—with some hotspots achieving even more. In areas with high student populations or lower entry prices, gross yields can edge upwards of 7–8%.
Capital Growth Potential
While investors are rightly focused on yield, capital growth is an added benefit. York property prices rose by 3.4% year-on-year in 2024 according to the Rightmove HPI. The city’s strong fundamentals mean properties are more likely to hold their value and grow over time, making York a safer long-term bet.
What makes a good investment area?
Before diving into specific neighbourhoods, it’s important to understand what separates a promising buy-to-let area from one to avoid. Key factors to consider include:
- Rental demand: Is there a steady pool of prospective tenants?
- Yields: What return can you expect relative to the property’s price?
- Capital growth: Are house prices rising steadily?
- Tenant profile: Are you targeting students, professionals, families—or a mix?
- Amenities and transport links: Is the area well connected and desirable to live in?
With these criteria in mind, let’s explore the top five York neighbourhoods worth considering for your next rental investment.
1. City Centre (YO1)
York’s city centre is the historical and cultural heart of the region. Cobblestone streets, Roman walls, the iconic York Minster—it’s no surprise that property here commands a premium. But with high demand from professionals and short-term tenants, it also delivers solid returns.
Why it works:
- High rental demand from professionals and tourists.
- Strong performance as a short-term or serviced let location.
- Walking distance to York Station—ideal for commuters to Leeds and London.
Average property price: £340,000
Average monthly rent: £1,200
Gross yield: ~4.2%
Investor tip: Flats and smaller terraced homes are ideal for city centre lettings. While yields are slightly lower, high occupancy and rising capital values make it a strong long-term hold.
2. Heslington (YO10)
Situated just a couple of miles from the centre, Heslington is home to the University of York, making it a hotspot for student housing. It’s also popular with academic staff and young professionals due to its proximity to the Science Park and business hubs.
Why it works:
- Year-round rental demand from students and university employees.
- HMO (House in Multiple Occupation) potential with high rental yields.
- Good transport links and amenities tailored to younger tenants.
Average property price: £290,000
Average monthly rent (HMO): £2,400+
Gross yield: ~7–8% for HMOs
Investor tip: Look for properties with three or more bedrooms near the university campus. Licensing rules apply for HMOs, so make sure you’re compliant before purchasing.
3. Fulford (YO10)
Fulford offers the best of both worlds—peaceful riverside living and excellent access to York’s city centre. It’s known for its strong schools, making it popular with families, but also appeals to professionals due to its accessibility and green spaces.
Why it works:
- High demand from professional couples and families.
- Close to reputable schools including Fulford School.
- Easy access to the A19 and University of York.
Average property price: £330,000
Average monthly rent: £1,150
Gross yield: ~4.2%
Investor tip: Larger semi-detached and detached homes perform well here, particularly for long-term tenants. Low turnover, reliable tenants, and potential for capital appreciation make Fulford a stable choice.
4. Clifton (YO30)
Northwest of the city centre lies Clifton, a well-established suburb that’s grown in popularity thanks to its blend of affordability and connectivity. It appeals to a broad tenant base including families, NHS workers (York Hospital is nearby), and young professionals.
Why it works:
- Lower purchase prices compared to central York.
- Strong rental demand from local workers.
- Excellent access to the outer ring road and A1237.
Average property price: £290,000
Average monthly rent: £1,100
Gross yield: ~4.6%
Investor tip: Look for ex-local authority homes or modern two-bed terraces. They’re often competitively priced and easy to rent.
5. Acomb (YO24)
Acomb is fast becoming one of York’s most exciting areas for investors. Historically overlooked, the area is now attracting buyers and tenants due to its community feel, range of amenities and good value properties.
Why it works:
- Lower property prices allow for strong yields.
- Excellent local amenities including schools, supermarkets and green space.
- Popular with families and first-time renters.
Average property price: £260,000
Average monthly rent: £1,050
Gross yield: ~4.8%
Investor tip: Buy early. Regeneration and rising demand are pushing prices up year-on-year, making Acomb a smart play for those looking to balance yield and growth.
What to consider before investing
Investing in York isn’t just about finding the right postcode—it’s about being prepared, informed and supported. Before taking the plunge, consider the following:
1. Understand local licensing
HMOs (three or more unrelated tenants) may require mandatory licensing in some areas of York. Familiarise yourself with City of York Council’s guidelines to stay compliant.
2. Know your target tenant
Student tenants? Families? Young professionals? Understanding your ideal tenant helps shape everything—from property choice to marketing strategy.
3. Factor in management costs
Letting and managing a property takes time and expertise. At Northwood York, we offer fully managed services that protect your investment and free up your time.
4. Run the numbers
Calculate not just your yield, but your net profit after expenses. This includes mortgage payments, insurance, maintenance and management fees.
Is now the right time to invest in York?
With demand outstripping supply, strong tenant profiles, and consistent property value growth, York continues to offer exceptional opportunities for buy-to-let investors. Whether you’re aiming for high-yield HMOs near the university or low-maintenance family homes in the suburbs, York provides a varied landscape for profitable property investment.
Ready to take the next step?
At Northwood York, we’re experts in the local rental market. Whether you’re buying your first investment property, looking to expand your portfolio, or wondering what your current rental property is worth, we’re here to help.
✅ Enquire about investment properties currently on the market
✅ Book a free, no-obligation valuation of your rental property
✅ Get tailored advice from local property specialists who understand York inside out
Stay ahead of the curve. Make your next property move with Northwood York.
This article is based on publicly available data from Rightmove, Zoopla, and the Office for National Statistics. It reflects conditions as of April 2025 and is intended as a guide, not financial advice. For tailored recommendations, speak to a qualified property professional.
