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Yield
Clowes Street, Oldham, Lancashire
OL9 7LY Oldham 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 OL9 7LY.
Estimated yield for property investors
6.1%
Yield
The estimated yield for the OL9 7LY postcode area is 6.1%, which is higher than the national average yield of 3.8%.
Summary
Property yields in OL9 7LY 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 OL9 7LY 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 OL9 7LY 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 OL9 7LY
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 OL9 7LY generally point to better investment potential, influenced by rent prices and local demand.
Property Affordability
This metric indicates the affordability of properties compared to the average income. Areas with less affordable housing often see higher rents, which could enhance yields but may also reduce buyer interest, impacting property appreciation.
Rental Affordability
This measures the fraction of household income in OL9 7LY is allocated to rent. If rent is too high, tenant demand may fall, impacting yield. Balanced rent-to-income ratios, however, can attract tenants who are likely to stay longer, providing stable yields.
Household Income
When household income is higher, tenants can typically pay more in rent, potentially improving yields. Yet, in wealthier areas, elevated property prices might reduce the yield percentage even with robust rental income.
Urban Location
Urban areas often have higher yields due to demand from renters, particularly in cities with a young, mobile workforce. However, higher property prices in urban areas can balance out rental income, potentially lowering yield percentages.
Employment Score
Unemployment is a key economic indicator; low employment levels can reduce rental demand and raise vacancy rates, negatively affecting yields. High employment usually signals a stable economy, leading to stronger rental demand and better yields.
Outright Ownership
High levels of outright home ownership often indicate a settled community with reduced rental demand, which could lower yields. In contrast, areas with fewer outright owners may see higher rental demand, potentially boosting yields.
Crime & Safety Levels
Crime rates play a crucial role in determining yields; high crime can deter renters and reduce property values, leading to lower yields. Low crime rates, however, attract more renters and buyers, boosting property values and enhancing yields.
Best Performing Yields
The following postcodes within the OL9 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.
