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Dorset Rental Yields: Where To Buy?

Investing in property and entering the buy to let market is a smart move but you need to carry out research before you make a commitment. You need to make sure that your finances are in order and you want to make sure that you are buying the right sort of property in the right area. Dorset is an area that has a notable level of demand for rental accommodation, so this is a good starting point for investors but it makes sense to investigate the expected rental yields for a number of areas in Dorset.

The DT1 and DT2 postcode areas represent Dorchester and both are worth considering if you are looking to buy to let. In DT1, the average value of property stands at £296,199 (as of October 2017) and in the past 12 months, the average price paid for property is £294,432. The expected rental yield of a one bedroom property is 5.14% while a two bedroom property should provide a return of 4.52%. There is a 3.65% yield expected from a three bedroom property and there is a return of 2.82% from a four bedroom property. A five bedroom property in DT1 should provide a yield of 1.97%.

DT2 is worth considering when investing in Dorset

In the DT2 area, the average value of property stands at £379,683 while the average price paid for property in the past 12 months is £342,255. Anyone investing in a one bedroom property can expect a yield of 4.79% and a two bedroom property in DT2 offers a yield of 4.29%. There is a yield of 3.41% expected from a three bedroom property while a four bedroom property offers a yield of 2.9%. If you are looking to invest in a five bedroom property in DT2, you can expect a rental yield of 4.32%.

The DT3 postcode area represents some of Weymouth, including areas like Chickerell, Broadway, Osmington, Littlemoor and Langton Herring. The average value of property in DT3, as of October 2017, stands at £304,312 while the average price paid for DT3 property in the past 12 months is £290,673. The expected rental yield of a one bedroom property is 5.37%, there is an expected yield of 4.91% for a two bedroom property and a three bedroom property in DT3 offers a yield of 3.67%. For people investing in four or five bedroom properties, you will find that the return on offer is 3.35% and 2.28% respectively.

Weymouth has a lot to offer

Weymouth is also represented by the DT4 postcode area, with the town centre, Wyke Regis and Melcombe Regis falling under this area. The average value of property in DT4, again as of October 2017, stands at £240,062 while the average price paid for property in the past 12 months stands at £223,568. With respect to expected rental yields, the following information is of interest:

  • One bedroom property in DT4 offers a yield of 5.6%
  • Two bedroom property in DT4 presents a yield of 5.46%
  • Three bedroom property in DT4 provides an expected yield of 4.25%
  • Four bedroom property in DT4 carries a yield of 4.14%
  • A five bedroom property in DT4 should give a yield of 4.29%

The DT5 postcode area is also well worth considering, with Portland covering areas like Easton, Southwell, Weston and The Grove. This is a more affordable area of Dorset with the average value of property standing at £201,117 and the average price of property, over the past 12 months, stands at £180,196. Given that the cost of purchasing the property is a factor in the expected yield, it is no surprise to learn that the area with the lower cost of property provides a more attractive rate of return. A one bedroom property in DT5 carries a return of 6.09% and there is an expected return of 4.98% for two bedroom properties. Anyone looking for a three bedroom property in DT5 will find an expected rental yield of 4.51% and there is a 4.2% expected rental yield available from four bedroom properties.

Anyone looking at the expected rental yields alone will find that the DT5 postcode area is likely to be the most attractive area to invest in when considering Dorset property. However, there are many reasons why someone would invest in an area, and it may be that another area of Dorset is more attractive to you. No matter what you are looking to achieve with your investment plans, you should find that Dorset has a lot to offer.

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