Hull has held the mantle of biggest UK property hotspot for over a year now, with property investment clubs – who train would-be landlords to make invest for success – recommending it as the number one place to buy.
Why is that? Well, there’s a perfect storm going on, with the positive PR bow wave created by Hull’s City of Culture status and the regeneration this fuelled, coupled with property prices which remain extremely compelling compared to rental yields.
I get asked a lot if I think it’s too late to capitalise on this trend and my answer, every time, is ‘no, so long as you do your research and consider very carefully what and where you invest in, and what your personal priorities are.
This is because the legacy of Hull’s City of Culture status is set to last until 2021 and beyond, and the knock-on effects of the renewed interest it has already generated in the city are as yet to unfold.
Let’s consider the economics for a minute. It’s still possible to buy a decent property in the city for £60,000 and rent it out for £550 per month. That’s a yield of roughly 10 per cent (rental income as a percentage of property value). Compare this to somewhere like York where you might have to spend £300,000 to achieve £850 a month and it becomes a no-brainer. Not only are the comparative ratios compelling, but Hull offers a lower entry point in terms of the amount of capital you have to have in the first place, to get on the property investment ladder. And the yield is at least four times higher than in London, which explains the increased interest from investment buyers from there and indeed the rest of the world.