Are you looking for an affordable route into property investment? Hull could be the perfect place to start your portfolio.
It’s the UK City of Culture for 2017 – and Hull is on the up. The city is enjoying a real renaissance, with regeneration projects, new industry, significant investment and new infrastructure already transforming the area.
As a large, diverse city, there are plenty of options for property investors – but where are the best places to invest in Hull in 2017?
Over the coming months, we’ll take an in-depth look into some of the different areas of Hull and the surrounding villages, looking at average property prices and potential rental returns for investors. This month, we’re starting with HU7 – one of the key residential areas, and an area that’s always been popular with investors. Here’s why.
HU7 is a large post code, covering the North East of Hull. It’s home to around 15,000 residents, and features the popular residential areas of Kingswood and Sutton. Housing across the post code is affordable, and all three areas boast a wealth of schools, retail centres, shops, parks and green spaces.
The area enjoys excellent public transport links, with direct road access to the city centre in 15 minutes or less. As a result, it is popular with tenants. There are a good number of suitable investment properties available for sale in HU7 throughout the year.
HU7 is well placed to take advantage of the regeneration of the city, and within easy commuting distance of the key economic centres of the region – including good access to the centre of the newly developed renewables industry.
HU7 boasts a good mix of different properties, including a significant proportion of former council houses and terraces, as well as more modern developments. There are two key areas where we recommend investors focus on:
- Sutton – home to many former council houses built in the 1970s and 80s, with a blend of rented and owned properties
- Kingswood – an aspirational suburb consisting of modern developments, retail parks and leisure facilities
Market analysis – Zoopla – April 2017
Average property values in HU7 are: £132,041
To put this in perspective, it is around 40% lower than the national average, and 20% lower than the regional average.
To break this down further, the average value of a terrace house in the area stands at £93,975, with the average asking price of a 2-bedroom property (including both flats and houses), standing at £99,078.
Average asking rents in HU7 currently stand at £507 pcm. This is around 32% lower than the UK average (excluding London), and around 19% lower than the regional average.
To break this down further, average asking rents for a 2 bed property in HU7 currently stand at £500.
Potential yields and real world opportunities
Taking the post code average – a two-bedroom terrace property in the area should deliver gross rental yields of around 6.4%.
However, there are real opportunities in the area for investors to generate significantly improved returns. Many areas within the post code are home to a good number of distressed and repossessed properties.
These can be realistically purchased for £50,000, and refurbished to a good, modern rental standard for under £10,000. With the right property, gross returns of 10% are realistic and achievable.
Honest, expert buy to let advice from CJ Property
Whilst there are real opportunities for hull property investors, there are real risks, and getting things wrong can be very costly.
At CJ Property, our team are property management experts – and we’re here to help you make the right decisions when it comes to investing in buy to let property in Hull.
Our local team of property professionals has vast knowledge and unrivalled experience in the local market, and we can 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.