The last 18 months has been a rollercoaster ride for the UK property market!
After grinding to a standstill and near record price drops in early 2020, the market rebounded strongly. March 2021 saw almost 10% year on year growth – driven by the stamp duty holiday and changing demands from buyers following the pandemic.
For buy to let investors, it’s been an interesting time. While some landlords have left the market, the long term future looks extremely good, and there are some fantastic opportunities in Hull for new and established property investors alike.
In this post, we explore some of the changes that have happened in the UK property market over the last year, and look at the current and near future opportunities for buy to let investors in Hull.
Changes in the Buy to Let Market in Hull and the UK
The private rented sector has been under pressure from the government for some time – with new tax changes, increasing regulations and a shift towards ‘tenant friendly’ policies having an impact on landlords across the UK.
Mortgage Interest Tax Relief, Capital Gains Tax rules, tax relief, energy efficiency legislation and electrical safety regulations have all changed over the last 18 months. As a result, some landlords have chosen to leave the market – and the sector contracted for the first time in many years.
Despite these challenges, the long-term outlook is for growth, and sentiment amongst established landlords is positive. More than a third of UK landlords say they are planning on purchasing a property over the next 12 months!
Demand from tenants has also been growing. In total, 42% of landlords in the UK report that they have seen demand increase for their properties in the past 12 months.
Locally, we’ve seen a significant increase in both local and out of town landlords purchasing property in Hull – from investors wanting to maximise short term yields, to those looking to benefit from sustainable returns and long-term price increases.
Buy to Let in Hull – Opportunities for Landlords
According to a recent report from Shawbrook Bank, Yorkshire and the Humber is one of the top three regions in the UK for average rental returns. Landlords across the region are achieving an average of 5.4% on their investment, significantly higher than the UK average of 4.3%.
Hull has become a real hotspot for investors over the past decade – and it’s easy to see why. The city has been transformed over the last decade, and now sits at the forefront of the UK’s green energy revolution.
The rental market is buoyant, and although prices have risen over the last few years, Hull continues to be one of the most affordable cities to buy in. There is real confidence in the market, and demand for rental properties in the right areas is extremely high.
For landlords that understand the market and the local area – it’s a fantastic time to build a portfolio.
Looking to The Future
Hull is a city on the up, and the future looks extremely bright. The green energy revolution has brought significant investment and employment opportunities to the region, with further development over the next decade set to strengthen this.
House prices remain low, with significant space for future growth. The cost of lending is low, and yields are some of the best available in the country. Demand for quality rental property in the right areas consistently outstrips supply.
At the same time, rising prices are proving to be a barrier to home ownership – providing opportunities for landlords who can offer high quality homes in the city.
Search and Find Buy to Let Homes in Hull with CJ Property
Successful buy to let strategies start with buying the right property – and at CJ Property, we have a proven track record in helping investors make the right decisions when it comes to buy to let property.
We understand the areas, the market and the properties renters are looking for down to the smallest details – and can provide the honest, expert guidance you need to build a successful portfolio.
For additional information about our Search and Find service, or to talk to a member of our expert property management team, please call 01482 645270 today.