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Yield
OL6 9YU Tameside District (B)
This section gives the estimated property yield for the postcode based on our own unique algorithms, comparing it to the national average. We analyse gigabytes of data to explore why yields might be higher, lower, or in line with expectations. From local market trends to demand and property types, the data paints a clear picture of investment potential in OL6 9YU.
Estimated yield for property investors
6.7%
Yield
The estimated yield for the OL6 9YU postcode area is 6.7%, which is higher than the national average yield of 3.8%.
Summary
Property yields in OL6 9YU are lower than average, which might reflect a more mature or stable market where opportunities for high returns are limited.
However, the high safety score adds value to the area, potentially attracting long-term tenants or buyers who prioritixe security, making it a stable investment option.
The urban nature of OL6 9YU suggests that the area is well-connected and densely populated, which typically correlates with strong rental demand and potentially higher yields.
With a lower rate of home ownership, the rental market in OL6 9YU is likely more active, offering greater opportunities for investors to capitalise on demand.
Furthermore, the high safety score in this urban area adds to its desirability, potentially attracting a broader demographic of renters, including families and professionals who prioritise security.
Factors affecting yield in OL6 9YU
Understanding property yield involves considering various factors like affordability, income, and crime rates. These elements influence rental demand, property values, and ultimately, the return on investment.
Property Yield (%)
This is the rate of return on a property investment, expressed as a percentage of its value. Higher yields in OL6 9YU generally point to better investment potential, influenced by rent prices and local demand.
Property Affordability
Property affordability in OL6 9YU compares the cost of housing with average earnings. Lower affordability can lead to increased rents, potentially raising yields, but it might also dampen buyer enthusiasm, which could affect property values over time.
Rental Affordability
This indicates how much of household income is spent on rent. If rents in OL6 9YU are too high compared to income, it might limit tenant demand, reducing yield. Conversely, balanced rental affordability can attract long-term tenants, stabilising yield.
Household Income
Greater household income often allows residents to pay higher rents, enhancing yield potential. But in affluent regions, the higher property prices could reduce the yield percentage, despite solid rental returns.
Urban Location
Higher yields are common in urban areas due to strong renter demand, especially in cities with a young and mobile workforce. Yet, higher property prices in these regions can reduce the yield percentage, balancing out the rental income.
Employment Score
High unemployment often signals an unstable economy, which can decrease rental demand and raise vacancy rates, thereby reducing yield. Low unemployment, on the other hand, usually points to a stable economy, enhancing rental demand and yields.
Outright Ownership
Outright home ownership often reflects a settled, stable community with lower rental demand, which could lead to reduced yields. On the other hand, areas with fewer outright owners may have higher rental demand, which could enhance yields.
Crime & Safety Levels
High crime levels can discourage renters, decrease property values, and result in lower yields. In contrast, low crime rates make an area more desirable, driving up rental demand and property values, which can enhance yields.
Best Performing Yields
The following postcodes within the OL6 location current have the highest performing yields:
Methodology
Our property yield estimates are derived from a custom algorithm built by PostcodeArea that combines data from the Census 2021 and other reliable third-party sources.
This algorithm evaluates several key factors - including affordability, rental affordability, household income, urbanisation, unemployment rates, property ownership levels, and safety. We do this by assigning weighted scores to each factor. These factors are chosen for their relevance to property investment, with the yield percentage itself carrying the most weight due to its direct impact on potential returns.
The algorithm also incorporates conditional logic to assess how different combinations of these factors might influence property yield. For example, a neighbourhood with high rental affordability and strong income levels might indicate robust rental demand, leading to higher yields.
Conversely, areas with high unemployment and low income could see reduced rental demand, potentially lowering yields.
By considering these interactions, the algorithm provides a more nuanced estimate than simple averages or single-factor analyses.
It's important to note that these yield figures are general estimates intended as a guide rather than precise calculations. While the algorithm offers valuable insights based on historical and statistical data, it may not fully capture the unique aspects of each neighbourhood or current market conditions.
Investors should use this information as a starting point for further analysis and consider it alongside other factors such as market trends and personal financial goals.
