Hull has been crowned the top seaside location for landlords in England and Wales, according to new research from online property investment company LendInvest.
The firm’s latest buy-to-let Index analysed which coastal towns offer the best average rental yields to landlords, with seaside resort Withernsea – a Hull postcode area – winning out. Landlords who purchase property in Withernsea can expect rental yields of up to 10.7%.
Hull, the UK’s City of Culture for 2017, has undergone significant regeneration in recent years and is a popular hub for student accommodation thanks to burgeoning reputation of the University of Hull. Investment in the right sort of areas could bring landlords great rewards.
Blackpool – famous for its Pleasure Beach and donkey rides – is also a good location for landlords seeking excellent rental yields. Landlords and investors who opt to invest in the famous seaside town could enjoy rental yields of 8.2%, while tenants shouldn’t be hard to come by in a seaside resort that is one of the UK’s most iconic.
In Wales, Colwyn Bay and Barry (made famous by Gavin & Stacey, of course) offer average rental yields of 6.1% and 6% respectively.
Seaside towns and villages in the postcode areas of Portsmouth, Norwich, Canterbury, Brighton, Colchester, Preston, Lincoln and Bristol could also tantalise landlords looking for healthy rental yields. Many of these areas are outside London and the South East, which means landlords can benefit from cheaper property prices when it comes to starting or expanding their portfolio.
Crucially, though, demand is still high, with more and more people these days turning to the private rented sector for the long-term.
As you would expect, the famous old seaside towns of Bournemouth, Southend-on-sea, Plymouth, Morecambe and Scarborough – places which evoke so many images and hold so many memories for domestic holidaymakers – also offer landlords plenty. Rental yields of 5% can be expected in Bournemouth, while Morecambe and Scarborough both offer average yields of 5.5%.
People considering property investment in seaside towns might immediately think of places in the south like Brighton, Eastbourne, Margate and Weymouth, but the above research shows that landlords might be better off looking to norther coastal resorts instead.
There is often big demand from renters for properties in seaside towns, whether it’s for full-time tenancies or just a few weeks during the holiday months. Either way, filling properties in these locations shouldn’t be too difficult and could bring great rewards in the long-term.
Having said that, investors/landlords would be well-advised to check how strong demand is in any given area and how fierce the competition is. As always, thorough research and careful planning will help landlords in their goal to achieve the best rental yields possible.