York’s rental market continues to record strong rental growth. According to the latest Office for National Statistics data available for this August 2026 guide, the average private rent in York was £1,186 per month in June 2026, up 5.7% from £1,122 a year earlier.
Property prices have also risen. The average York house price was £309,000 in May 2026, up 3.3% year-on-year. This means rental growth has recently been running ahead of house price growth at city level, although individual properties and neighbourhoods can perform very differently.
For landlords focused on rental income, location, purchase price, property type and tenant demand all matter. One established residential area worth considering is Heworth.
Why Heworth stands out in York’s rental market
Heworth lies to the north-east of York city centre and combines residential streets with relatively convenient access to central York.
Unlike the original claim, Heworth does not have an operational railway station. Residents instead benefit from local bus routes, road connections and cycling or walking access into parts of central York, while York railway station provides the city’s principal national rail connections.
Heworth’s location also puts residents within reach of major employment centres, including York Hospital, as well as the shops, leisure facilities and workplaces of the city centre.
For landlords, the appeal is the area’s broad potential tenant base. Depending on the property, this can include professionals, healthcare workers, couples and families.
Rental yields should, however, be calculated property by property rather than assuming a particular return across the whole YO31 postcode. Purchase prices, achievable rents, property condition and running costs can vary substantially even within the same neighbourhood.
What rents look like across York in August 2026
The latest ONS figures provide a useful benchmark for landlords assessing individual properties.
As of June 2026, average monthly private rents across York were:
- One bedroom: £866
- Two bedrooms: £1,070
- Three bedrooms: £1,265
- Four or more bedrooms: £1,730
By property type, average monthly rents were £999 for flats and maisonettes, £1,178 for terraced homes, £1,273 for semi-detached homes and £1,544 for detached properties.
These are York-wide averages rather than Heworth-specific valuations. A property’s exact location, condition, size, energy efficiency and specification can all influence the rent it is likely to achieve.
That’s why landlords considering Heworth should base their calculations on a current local rental valuation rather than a postcode-wide headline yield.
How Heworth compares with other parts of York
Different parts of York appeal to different tenant groups, so there isn’t a single neighbourhood that’s automatically best for every landlord.
Hull Road and Fishergate
Hull Road and Fishergate are established rental locations with access to the city centre, universities and other amenities.
They can be particularly relevant to landlords considering houses in multiple occupations (HMOs), but additional regulatory requirements need to be factored into any investment decision.
Both Hull Road and Fishergate are among the eight York wards covered by the city’s Additional HMO Licensing Scheme.
Landlords should therefore establish the licensing and planning position of an individual property before purchasing or converting it for HMO use.
Acomb and west York
Acomb is an established residential area west of York city centre, offering a broad mix of housing and local amenities.
Purchase prices and rents can differ from more central parts of York, potentially creating different yield opportunities. However, landlords should calculate potential returns using current purchase and rental values for the specific property rather than relying on a general postcode yield.
York city centre
Central York provides a very different investment proposition.
Its historic environment, employment opportunities, transport connections and extensive leisure and hospitality offer support for demand for centrally located accommodation.
However, property prices can be comparatively high, so landlords need to assess carefully whether the achievable rent produces an acceptable return after purchase and operating costs.
Understanding HMO compliance in York
Landlords considering HMO investment in York need to understand both national mandatory licensing and York’s local additional licensing requirements.
Under mandatory HMO licensing, a licence is generally required where a property is occupied by five or more people forming two or more households who share facilities such as a kitchen, bathroom or toilet.
York goes further in specified parts of the city.
Since April 2023, the city’s Additional HMO Licensing Scheme has required qualifying HMOs occupied by three or four people forming more than one household to be licensed in eight wards:
- Clifton
- Fishergate
- Fulford and Heslington
- Guildhall
- Heworth
- Hull Road
- Micklegate
- Osbaldwick and Derwent
The current designation runs until 31 March 2029, unless revoked earlier.
Importantly for landlords considering Heworth is included in the additional licensing area. It should therefore not be described as automatically offering a simpler HMO regulatory environment than York’s better-known student areas.
York City Council also advises that planning permission is required in many circumstances when using a property as an HMO, so landlords should check the planning status of the individual property rather than relying solely on its postcode.
The Renters’ Rights Act and York landlords
The regulatory environment has also changed nationally.
The main private rented sector tenancy reforms under the Renters’ Rights Act 2025 came into effect on 1 May 2026.
Existing assured shorthold tenancies moved to assured periodic tenancies, while new qualifying private tenancies are also assured periodic tenancies. Section 21 ‘no-fault’ evictions have been abolished for private-sector assured tenancies, meaning landlords must use the appropriate possession grounds and follow the required process when seeking possession.
For York landlords, this makes accurate documentation, good property management and an understanding of the current possession rules particularly important.
What the numbers actually mean for your portfolio
Headline gross yield is useful, but it shouldn’t be the only number driving an investment decision.
For example, consider a hypothetical property purchased for £230,000 and rented for £1,150 per month. That would produce annual rent of £13,800 and a gross yield of approximately 6%.
But gross yield doesn’t account for mortgage interest, maintenance, insurance, letting and management fees, licensing costs, service charges or periods without a tenant.
The latest ONS data shows why checking the individual property matters. York’s average two-bedroom rent was £1,070 per month in June 2026, but actual achievable rents can sit above or below this depending on location and specification.
Landlords considering an HMO also need to include licensing and management costs in their calculations. For example, City of York Council’s HMO licensing fees for applications submitted between April 2026 and March 2027 start at £1,524 for properties licensed for three to six occupants, before any applicable discount.
Is Heworth a good place to invest in August 2026?
Heworth remains worth considering for landlords who want an established residential location close to central York and major employment facilities.
But it would be misleading to describe Heworth categorically as York’s highest-yielding or best income-first neighbourhood without robust, current neighbourhood-level sales and rental evidence.
The investment case should instead be assessed property by property.
Look at the purchase price, realistic achievable rent, condition of the property, expected maintenance, EPC rating, licensing requirements and likely tenant profile. If you’re considering an HMO, check both licensing and planning requirements before committing to a purchase.
Making a smarter investment decision in York
York’s underlying rental figures remain encouraging for landlords in August 2026.
Heworth’s proximity to central York and major employment facilities gives it characteristics that may appeal to a broad tenant market. But the best investment will depend on the individual property and the numbers behind it.
Hunters York works with landlords across York, from first-time investors to experienced portfolio owners navigating the city’s HMO requirements.
If you want to understand what your current York property could achieve in the August 2026 rental market, book a free valuation with Hunters York for a property-specific assessment.
Ready to discuss your options? Get in touch with the Hunters York team to discuss your property, local tenant demand and the requirements that apply to your investment.
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