Investing in Hull
Posted on 21st April 2023 at 12:29
Hull is in the process of becoming a Northern Powerhouse of its own, with billions of pounds worth of funding, a growing employment market and improving infrastructure we believe that Hull has all the fundamentals for building a robust buy-to-let portfolio. With some of the most affordable buy-to-let properties offering some pretty impressive returns.
If you’ve never ventured to these parts than it is worth giving some context. Hull, or Kingston-Upon-Hull to give it its full title is in East Yorkshire with a population of around 267,000 according to the latest census data, that is the highest the population has been since the 1980s, suggesting that fewer people are moving away from the city. – a bonus for the housing market as this drives both buyer and tenant demand.
Hull is also home to its fair share of industry, having one of the largest ports in the country that coupled with its proximity to the M62 linking to the rest of the country makes it ideal from a logistics point of view. More companies are also choosing to set up headquarters here, KCOM, the areas largest telecoms provider, Smith & Nephew, a multinational pharmaceuticals business and Crown Paints, a national paint manufacturer, just to name a few.
The University of Hull is home to 14,000 students which over recent years has pushed up demand for student accommodation.
As with most cities Hull is broken up across multiple postcodes, here’s our favourite for property investment.
Lets start in the middle, the city centre and its inner suburbs is home to around 45,000 people. The average house price in HU2 is £101,500 with flats being picked up for an average of £75,357 and terraced properties for £132,000. This area shouldn’t be overlooked, it works well for shared lets with an average yield of 7% here.
Low purchase prices and attractive rents make HU9 perhaps the ultimate sweet spot for buy-to-let investing in Hull. With an average property price of £117,612. There’s a bigger range of properties in this area with flats selling for £102,132, terraced properties bringing £104,799 and semi detached properties selling for £132,500. Prices in the area are 7% up on their peak back in 2018. HU9 offers great amenities, easy transport links both into and out of the city resulting in tenant demand being consistently high due to the nearby industrial estates and docks.
The next area in our list is HU7, over the last 10 years many parts of this postcode have performed very well, this could be down to the heavy investment into Kingswood and neighbouring Bransholme. Another varied area when it comes to property prices with terraced properties selling for £127,731, Semi-detached properties bringing £167,528 and detached properties fetching £247,288. This area has become very attractive for long term family tenants.
Back to the centre now and completing our list is maybe Hull’s most diverse postcode, HU5. You’ll find a range of strong capital growth and high cash flowing properties here with the numbers indicating this. Flats selling for £119,677 on average whilst terraced properties sell for £127,947 and semi detached properties fetching £154,531. Prices are up 3% on there 2019 peak. With a range of property types available for investors you won’t struggle to find houses of multiple occupation, single let and student let properties.
To get involved in this established market, with a growing demand for buy-to-let property, click here to speak with one of our award winning mortgage brokers.
*Figures correct as of March 2023
For more information or support investing in Hull, please contact us below
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