As we move through 2025, savvy investors are increasingly turning their attention to Huddersfield – a well-connected town in West Yorkshire that offers a compelling mix of affordability, strong rental demand, and future growth potential. Huddersfield, the largest town in the Kirklees Council area, is strategically located between the cities of Leeds and Manchester. With its rich industrial heritage, excellent transport links, growing university population, and ongoing regeneration projects, Huddersfield presents a compelling case for buy-to-let investment this year. At Global Phoenix Group, we believe Huddersfield represents a prime opportunity for buy-to-let investment in 2025.

This comprehensive buy-to-let guide Huddersfield explores the most promising investment areas within the town, analyses current rental yields, and examines the Huddersfield housing market 2025 trends that are shaping investment decisions in this increasingly popular northern town.

Why Invest in Huddersfield in 2025?

Huddersfield combines affordability with strong growth potential, making it an appealing option for property investors. Several factors contribute to Huddersfield investment opportunities:

1. University-Driven Demand

The University of Huddersfield continues to be a significant driver of Huddersfield rental demand. With over 20,000 students and growing international enrolment, the need for quality student property investment Huddersfield remains robust. The university’s ongoing expansion and improved rankings have strengthened this demand throughout 2024 and into 2025.

2. Transport Connectivity

Huddersfield’s excellent transport links, with direct train services to Manchester (35 minutes) and Leeds (20 minutes), make it an attractive base for commuters seeking more affordable living options. The planned improvements to the TransPennine route and Northern Powerhouse Rail initiatives continue to enhance the town’s connectivity and overall Huddersfield property investment potential.

3. Regeneration Initiatives

The ongoing Huddersfield Blueprint regeneration programme, with its £250 million investment plan, has been transforming the town centre. Key developments like the New Street and Kingsgate expansion are now bearing fruit, creating new commercial spaces and enhancing the town’s appeal to both residents and those seeking to invest in Huddersfield.

4. Strong Market Performance

According to the Office for National Statistics (ONS), the average house price in Kirklees stood at £199,000 in February 2025 (provisional), marking an 8.5% increase from the previous year. This outpaced the regional average growth of 7.5% across Yorkshire and The Humber, highlighting rising Huddersfield property prices.

Moreover, homes bought with a mortgage averaged £203,000 — up 8.7% year-on-year — while first-time buyers paid an average of £172,000, reflecting the area’s growing appeal to new entrants into the property market.

In terms of rental performance, private rents rose to an average of £687 in March 2025, representing an annual increase of 3.1%. While this growth was slightly below the regional average of 4.6%, it still indicates a stable and upward rental market.

Average property rents in Huddersfield now stand at £841 per month, with a median rent of £695, underscoring the variation in rental values across property types and areas and reinforcing the town’s strong Huddersfield rental yields 2025.

Best Buy-to-Let Areas in Huddersfield

1. Town Centre (HD1)

Average Property Price: £165,000 – £210,000
Average Rental Yield: 5.8-6.5%
Best For: Young professionals, students

The town centre has seen significant transformation through the Blueprint regeneration programme. Modern apartment developments near St. George’s Square and the railway station have proven particularly popular with young professionals. The completion of several mixed-use developments in late 2024 has added premium rental stock to the area, making it one of the top Huddersfield property hotspots.

2. Lindley (HD3)

Average Property Price: £220,000 – £295,000
Average Rental Yield: 4.7-5.5%
Best For: Families, healthcare professionals

This sought-after suburb continues to attract family rentals Huddersfield and professionals, particularly those working at the nearby Huddersfield Royal Infirmary. The area features excellent schools, independent shops, and restaurants, making it a perennial favourite for longer-term tenants.

3. Birkby and Hillhouse (HD2)

Average Property Price: £140,000 – £190,000
Average Rental Yield: 6.0-7.2%
Best For: Families, HMOs

These areas offer some of the highest rental returns Huddersfield has to offer. The housing stock primarily consists of Victorian terraces, many of which can be converted into high-yielding Huddersfield HMOs. Recent infrastructure improvements have boosted the area’s appeal.

4. Lockwood and Crosland Moor (HD4)

Average Property Price: £125,000 – £180,000
Average Rental Yield: 5.5-6.8%
Best For: Budget-conscious investors

These areas offer excellent value for investors with more limited capital. The ongoing regeneration of the Lockwood area, including improved retail facilities and better transport links, has increased its attractiveness to tenants and positioned it among the more accessible investment areas Huddersfield.

5. Marsh and Edgerton (HD1/HD3)

Average Property Price: £190,000 – £300,000+
Average Rental Yield: 4.5-5.8%
Best For: Professional couples, academics

These desirable areas are popular with university staff and more affluent tenants. The leafy suburbs offer larger properties and good amenities, with Edgerton in particular featuring some impressive Victorian villas that can command premium rents.

Current Rental Yields and Market Trends

Rental Yield Analysis

The average gross rental yield across Huddersfield currently stands at 5.7%, comparing favourably with the national average of 4.3%. However, there is significant variation depending on property type and location:

Key Market Trends in 2025

The Huddersfield housing market 2025 has remained relatively resilient despite wider economic uncertainty. Here are a few key trends we have observed this year:

• Affordable Pricing: Average house prices in Kirklees have risen to £199,000 as of February 2025, reflecting healthy capital growth and buyer confidence. First-time buyers are entering the market at an average price point of £172,000, while mortgage-backed purchases are averaging £203,000 — signalling growing confidence in Huddersfield’s long-term potential.
• Huddersfield Rental Demand Outstripping Supply: With a growing student population and an undersupply of quality rental homes, landlords are seeing shorter void periods and rising rents. This trend is particularly strong in central and university-adjacent locations. Despite increased purpose-built student accommodation, there remains strong demand for high-quality HMOs near the university. Properties offering en-suite facilities, high-speed internet, and inclusive bills are particularly successful.
• Regeneration and Infrastructure: Ongoing investment in transport links, town centre improvements, and nearby employment hubs like Leeds and Manchester continue to make Huddersfield more attractive. Savvy investors are looking to benefit from this ripple effect and tap into buy-to-let opportunities Huddersfield has to offer.
• Energy Efficiency and Compliance: With increasingly strict EPC regulations on the horizon, landlords are taking a proactive approach to retrofitting older properties. Investors who prioritise energy-efficient upgrades in 2025 are likely to stay ahead of compliance changes and attract eco-conscious tenants. Properties meeting these standards are commanding a premium of 8-12% in monthly rent compared to less efficient equivalents.

Huddersfield remains one of Yorkshire’s hidden gems in 2025 for property investment. The combination of low entry costs, consistent rental demand, and improving infrastructure makes it an excellent choice for both first-time landlords and seasoned portfolio builders.

At Global Phoenix Group, our team is here to help you navigate the Huddersfield property investment landscape with confidence. Whether you are looking for a high-yield student
HMO, a family-friendly let, or long-term capital growth opportunities, we can guide you to the
right investment.

Ready to explore Huddersfield property investment opportunities? Get in touch with Global Phoenix Group today for a personalised consultation.