For property investors looking to build a portfolio in 2018, Hull and East Yorkshire offers some fantastic opportunities.
The whole region is on the up, riding a wave of cultural and economic resurgence following significant outward investment in the region, and the success of the Hull 2017 City of Culture year.
In the latest instalment in our ongoing property investment series, we examine the HU16 postcode, an area to the North West of the city. Home to Cottingham, one of the largest suburban villages in the country, as well as several smaller villages, it’s an ever popular place to live with a strong rental market.
HU16 is a large, semi-rural post-code, home to around 17,000 inhabitants, mostly based in historic suburban village of Cottingham. To the west of Cottingham, HU16 also takes in the small villages of Skidby and Raywell – although opportunities for investors are more limited here.
Once the largest village in England, Cottingham has a thriving centre, home to plenty of shops, cafes, pubs, restaurants and delis. It’s also home to Castle Hill hospital, making it a popular place for doctors, nurses and medical professionals.
Cottingham in a great position – at the edge of the Wolds, but within easy touching distance of the city centre. It has a train station on the Yorkshire Coast Line, making for easy commuting into Hull, and there are regular bus services into the city. Cottingham is also located close to Hull University, making it a natural base for post-grad students and lecturers alike.
It’s popular with a wide variety of residents, from students and young professionals, to families.
HU16 offers a diverse range of properties, from expansive family homes and historic character properties, to new build 2 and 3 bed properties on purpose built estates. It’s also home to a smaller selection of flats and 1 bed houses.
For buy to let investors, the best opportunities are found in Cottingham. For those looking to maximise yields, there is more value to be had with smaller properties. However, there is a strong rental market for properties of all sizes.
Cottingham is popular with medical professionals and university lecturers, which means strong demand for higher value 3 and 4 bed semi-detached homes.
Areas to look at
When it comes to specific streets, the investment hotspots in Cottingham are Finkle Street, Hallgate, Cresent Street, Harland Way and Northgate
Market Analysis – Zoopla – April 2018
Average property values in HU16 are: £232,436
Average asking prices for a 2 bed property in the postcode are £174,564.
Average rents across the postcode for 2 bed properties are around £500 pcm.
Potential yields and real world opportunities
Using these average figures, rental yields for 2 bedroom properties come back at a disappointing 3.4%. However, as is always the case, these fail to paint a true picture of the opportunities available to investors.
At the time of asking, the average asking price for a one-bedroom flat is £94,439 – with average asking rents at £504pcm, providing potential yields of over 6.4%.
With the right property, in the right location, it is feasible to achieve 7% in HU16. Having said that, investors looking to prioritise rental yields may be better looking at other postcodes (specifically, check out our guides to HU5 and HU7).
What HU16 offers that other postcodes don’t is an extremely safe bet. Properties in Cottingham are always in demand, and tend to attract professional, long term tenants.
For investors, this means lower void periods, lower tenant turnover and more security. If you’re looking for a safe, stable place to invest, or wanting to calm risk across your property portfolio, Cottingham is definitely worth a look.
Hull Buy to Let Property Advice from CJ Property
Hull and East Yorkshire are flourishing – and there’s no better time than the present to start investing in Hull residential property.
HU16 has some excellent opportunities for investors. However, whilst there is real money to be made, there are also real risks – make the wrong decisions, and it could be very costly.
The best way to ensure you choose the right properties (and get them at the right price), is to seek advice from a local property expert. At CJ Property, our team of local buy to let investment specialists is here to help you make the right decisions when it comes to investing in buy to let property in HU16, and across Hull and East Yorkshire.
With vast knowledge and unrivalled experience in the local market, we’re here to help you at every step of your investment journey. From finding the right, desirable properties in the right areas, to looking after your portfolio and managing it on your behalf – we’ll help you to achieve your property investment goals.
Ready to start your investment journey? Book your free, no obligation consultation with CJ Property – the Hull buy to let investment specialists. Call 01482 645270 today for further information.