Hull has been crowned as the top seaside postal location for landlords in England and Wales, the latest research from online property investment company LendInvest has revealed.
LendInvest’s most recent Buy-to-Let Index focused specifically on coastal towns and cities to find which of them provided the best average rental yields to landlords.
The Hull postcode area came out on top, with the seaside resort of Withernsea enjoying rental yields of up to 10.7%. Hull, the UK’s City of Culture in 2017, has experienced substantial regeneration in recent years and is a place that is popular among student landlords thanks to the continued success and appeal of the University of Hull.
Equally, there are those who find the idea of a quieter life by the coast – in places like Paull, Easington and North Ferriby – very appealing, allowing for another demographic that landlords can target their property towards.
Blackpool, iconic thanks to its Pleasure Beach, Tower and old-fashioned seaside charm, is another top location for landlords. Those who choose to invest in property in one of the UK’s most popular coastal resorts can expect to achieve rental yields of 8.2%.
Landlords shouldn’t have too much difficulty filling their properties with tenants, given the appeal of the town and the many attractions it has on offer. It could certainly hold a claim to be Britain’s most famous seaside town and its attractiveness to tenants – whether to experience the unique excitement, buzz and novelty of Blackpool itself or its smaller, quieter nearby neighbours – is unlikely to diminish any time soon.
North and South Wales, too, are welcoming location for landlords looking for healthy rental yields. Colwyn Bay in Llandudno, South Wales, was in third spot in the Index, with the picturesque seaside resort providing landlords with rental yields of 6.1%. Meanwhile, Barry in South Wales offers landlords and investors average rental yields of 6%. Both towns are popular seaside resorts, with nice beaches and various other attractions. Tenants with young kids, in particular, might found living in these areas appealing, as might retirees hunting down a more peaceful existence residing by the sea.
Seaside postcode areas in Norwich, York, Lancaster, Portsmouth, Lincoln, Brighton, Bournemouth and Preston also performed strongly, with the famous seaside resorts of Morecambe and Scarborough witnessing average rental yields of 5.5%.
HomeLet’s Rental Index for May backs up some of LendInvest’s findings. Yorkshire & Humberside (including Hull and Scarborough) saw a 7.3% increase in annual average rental values, while in East Anglia (also home to popular seaside resorts such as Caister-on-Sea, Great Yarmouth and Lowestoft) average rental values rose by 7%.
According to our May data, average rental values have gone up in eleven out of the twelve UK regions, compared to the same period last year. The average UK rental value, meanwhile, stood at £771pcm, up by 4.4% from the previous year. This once again shows not only the popularity of the private rented sector, but also how landlords who invest in the right places can benefit from it.
As the research by LendInvest outlines, healthy rental yields can be achieved all across the country. It’s not simply about London and the South East.
Seaside towns, in particular, tend to enjoy strong demand from renters, whether it’s for full-term tenancies or for a couple of weeks in the summer holidays. Landlords who choose the right areas to invest in are likely to reap significant rewards.
And it would appear to be the northern seaside resorts, rather than places like Margate, Brighton, Eastbourne and Bournemouth, that offer the healthiest rental yields.
Of course, this is partly down to the fact that property is cheaper the further north you go, but it also proves that demand for rented accommodation is strong and robust throughout the UK.