In the world of property investment, timing and location are everything. And right now, the spotlight is firmly on Northampton – specifically the NN5 postcode.
While national headlines may focus on sluggish house price growth, Northampton is telling a very different story. In late 2025, private rents across North Northamptonshire surged by 9.3% year on year, outpacing both the East Midlands regional average and the wider UK rental market. At the same time, NN5 quietly established itself as the top-yielding postcode in the town, delivering average gross returns of 5.8% for buy-to-let investors.
As we enter 2026, Northampton stands out not just for capital stability, but for its robust, income-led performance. And for landlords, it may just be the most compelling time in years to review or expand their portfolio.
Rents rising faster than anywhere else in the region
Let’s start with the data.
According to the ONS Rental Price Index and recent Zoopla research, average private rents in North Northamptonshire reached £962pcm in late 2025. That’s a 9.3% annual increase – significantly higher than the East Midlands average of 5.8%.
Behind the numbers are clear demand drivers:
- Northampton’s population continues to grow faster than new homes can be built
- Proximity to Milton Keynes, London and the Oxford-Cambridge Arc boosts its commuter appeal
- Employers in logistics, manufacturing, healthcare and technology are creating steady job growth
- Lifestyle appeal remains high, with town centre upgrades, green space, and strong schools
As a result, the rental market is tight. Well-presented homes are letting quickly, often after just one viewing. And with little sign of a supply surge in the short term, pressure on rents is likely to remain strong.
Why NN5 is Northampton’s top yield postcode
While capital growth in Northampton is steady – around 1.8% to 2.2% annually according to Zoopla – yields are where savvy investors are focusing.
And no postcode is performing better than NN5.
Here’s why:
- Properties in NN5 remain comparatively affordable, with many 2- and 3-bed homes available below £200,000
- Tenant demand is high from working professionals in nearby St James, Sixfields, and Brackmills
- NN5 covers a broad housing mix, including modern flats, 1930s semis, and newer family homes
- Transport connections are excellent, including easy access to the M1, A45 and train links
At Northwood Northampton, we’ve seen a marked increase in rental valuation requests and investor enquiries focused on NN5 in the past six months. Many landlords are choosing to refinance existing portfolios to acquire second or third properties in this area.
Compare this to NN3 – which includes sought-after areas like Abington and Boothville. While capital values are higher and tenant quality strong, yields are averaging around 4%. For yield-focused landlords, NN5 delivers better income performance with less capital outlay.
Who’s renting in Northampton in 2026?
The demand for quality rental homes is broad and growing. In 2026, Northampton continues to attract a mix of tenants who are reliable, long term and increasingly selective.
Key tenant profiles in NN5 include:
- Professional couples commuting to Milton Keynes or London
- Healthcare workers at Northampton General Hospital
- Warehouse and logistics employees in Sixfields and Pineham
- Young families looking for 2- and 3-bed homes with garden space and school catchment
This tenant mix supports both single-let and HMO strategies, with minimal void risk when properties are managed professionally and kept in good condition.
Buy-to-let in NN5: Example investment scenario
Let’s look at a typical investment model for NN5.
Property type: 2-bed terraced house near St James Retail Park
Purchase price: £175,000
Monthly rent: £850
Annual gross yield: 5.8%
With professional management and minimal void periods, net yields remain highly competitive after factoring in mortgage costs, maintenance and fees.
We’re also seeing strong interest in 3-bed homes priced around £200,000 that can achieve up to £1100pcm, pushing gross yields beyond 6% in some cases.
Capital growth: Steady but supported by fundamentals
While 2026 isn’t expected to deliver explosive price growth, Northampton remains a long-term capital investment play.
According to Rightmove’s HPI, average asking prices in the town have risen by 1.8% over the past year. It may not grab headlines, but it’s consistent and reflects strong fundamentals:
- Major regeneration and infrastructure projects, including Northampton Waterside Enterprise Zone
- Strong local employment and inward migration
- Limited new-build delivery compared to population growth
Many landlords now follow a blended strategy: buy for yield now, and benefit from gradual capital gains over the next five to ten years.
Five investor tips for success in 2026
If you’re considering Northampton property investment in 2026, particularly in NN5, here are five key tips to help maximise your success:
- Be postcode specific
Focus on NN5 streets with high rental demand and reliable tenant profiles. Look for areas near transport links and major employers. - Match property type to tenant type
Know who you’re targeting: a 2-bed flat for professionals or a 3-bed semi for a family? Each tenant group has different expectations. - Present properties professionally
Kitchens, bathrooms and energy efficiency now have a big impact on rent achieved. Poor presentation affects yield. - Plan your finance for the long term
Consider fixing your mortgage rate to lock in consistent returns. Work with a broker who understands buy-to-let. - Use expert property management
From tenant vetting to compliance, professional management ensures better performance, fewer voids and less hassle.
At Northwood Northampton, we also offer a Guaranteed Rent scheme for landlords seeking maximum stability. It provides a fixed monthly income, regardless of whether the property is let or the tenant pays.
Why landlords choose Northwood Northampton
Our team knows the Northampton market inside out. We’ve been helping landlords and investors navigate the town’s property landscape for years – and 2026 is one of the most dynamic periods we’ve seen for income-focused strategy.
Whether you own a single property or a growing portfolio, we provide:
- Expert rental valuations based on live local data
- Full letting and property management services
- Rent collection, inspections and compliance support
- Marketing tailored to tenant demand
- Optional Guaranteed Rent for hands-off income
We operate across all NN postcodes but have specialist insight into NN5, NN3 and NN1 investment performance.
Ready to review your portfolio or explore new opportunities?
2026 presents a rare window for landlords: yields are high, demand is strong, and Northampton is outperforming the region on every key metric.
If you’d like tailored advice on buying, letting or reviewing your current property, our team is here to help.
Book a free rental valuation or investment consultation.
Northwood Northampton. Local knowledge, national reach.
