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Yield
Frith St, Leek, Staffordshire
ST13 8EL Staffordshire Moorlands District
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 ST13 8EL.
Estimated yield for property investors
4.6%
Yield
The estimated yield for the ST13 8EL postcode area is 4.6%, which is higher than the national average yield of 3.8%.
Summary
Low yields combined with moderate safety levels in ST13 8EL suggest that this area may not be the best choice for property investors looking for strong returns. It may be worth exploring other areas with higher yield potential.
Property yields in ST13 8EL are lower than average, which might reflect a more mature or stable market where opportunities for high returns are limited.
The combination of lower yields and moderate safety might indicate that the area is less desirable for high-return investments, though it could still appeal to those seeking stable, long-term growth.
The urban nature of ST13 8EL suggests that the area is well-connected and densely populated, which typically correlates with strong rental demand and potentially higher yields.
The high rate of home ownership indicates a stable community, which could limit the number of rental properties available, potentially driving up rental prices and yields for the properties that are rented out.
Despite the urban appeal, a lower safety score might deter some potential tenants, which could impact rental demand and yield stability.
Factors affecting yield in ST13 8EL
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 (%)
Yield represents the income earned from a property as a percentage of its value. A higher yield in ST13 8EL indicates a more lucrative investment, shaped by factors like rental income, property costs, and local market conditions.
Property Affordability
Property affordability in ST13 8EL 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 ST13 8EL 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 generally enables residents to pay more in rent, which could enhance yields. However, in wealthier areas, the higher property prices might lower the yield percentage despite strong rental income.
Urban Location
Yields in urban areas are frequently higher because of strong rental demand, especially in cities with a young, transient population. Nonetheless, the higher property prices typical of urban locations can offset rental income, reducing yield percentages.
Employment Score
High employment is often a sign of economic trouble, which can lower rental demand and increase vacancy rates, reducing yield. Low unemployment generally suggests a stable economy, encouraging higher rental demand and improving yields.
Outright Ownership
When a large proportion of homes are owned outright, it often signals a stable community with less need for rental properties, which might reduce yields. Areas with fewer outright owners typically have more rental demand, leading to potentially higher yields.
Crime & Safety Levels
Crime rates have a significant impact on yields; high crime can reduce renter interest, lower property values, and diminish yields. Conversely, low crime rates attract more renters and buyers, boosting property values and yields.
Best Performing Yields
The following postcodes within the ST13 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.
