2020 has been a turbulent time for all of us – personally and professionally.
The UK housing market has not been immune from the impact of the crisis. For months, it ground to a near standstill, with house prices dropping at near-record rates since March.
However, we are now seeing some light at the end of the tunnel – and the impact of the crisis has opened-up some real opportunities. In fact, there has never been a better time to invest in buy to let property in Hull.
Affordable prices, excellent returns on investment and a very buoyant rental market means there is some serious money to be made for both new and established property investors alike.
In this post, we take a look at the housing market, and explore the current and future potential for investing in Hull rental properties.
House Prices Falling
2020 started with rising house prices, as the market got off to its strongest start in 4 years. The coronavirus crisis has put the brakes on this, and the trend has now reversed.
House prices have been falling for the last three months, and in May, prices were down 1.7% (Nationwide House Prices Index) – the biggest drop since the 2009 recession.
Although this is bad news for those looking to sell, it opens real opportunities for landlords looking to build their portfolios. We are already seeing sellers adjust their expectations in terms of price, and this plays into the hands of the chain-free investment buyer.
A Buoyant Rental Market
Hull is one of the UK’s property investment hotspots, and with good reason. The rental market remains extremely buoyant – with multiple areas across the city and beyond providing opportunities for investors implementing a range of different strategies.
Whether it’s maximising near term yields, or benefitting from sustainable returns and long term trends in prices, there are opportunities everywhere.
At CJ 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 make the right decisions when building a portfolio in and around the city.
Going Forward – A Green Future
A decade ago, just 3% of Britain’s energy came from renewable sources. So far in 2020, it’s been 37%!
Hull is at the forefront of this green energy revolution – the Siemens wind turbine factory, the Green Port development, the Yorkshire Energy Park and the Energy Works project are providing a platform for sustainable growth and future development of the city.
Thousands of green jobs have been created, and we’re already seeing the benefits of this transformation across the region. Investing now is the perfect time to capitalise on this rejuvenation.
This is just the start. The increasing likelihood of a Green New Deal as part of the economic recovery plan will only strengthen the city, and as the area flourishes, house prices have the potential to rise significantly over the long term.
Current Trends and Opportunities
With the lockdown rules relaxing, the rental market is enjoying a boom period.
The relaxation of rules has been the catalyst for many existing tenants to hand in their notice. Confidence in the property market looks to have returned, and we are being inundated with requests to view.
For landlords looking to invest now and capitalise on the trends, here’s what you should be looking for.
Hull and Beverley
Beverley remains popular, with demand from prospective tenants outstripping supply. The downsides with Beverley are that buy to let properties are hard to find, and prices are higher than other local areas.
Inside the city of Hull, there are real opportunities to purchase properties within close proximity of East Park. The northern end of Holderness Road (such as Summergangs Road) and Sutton Estate (Grizdale, Calderdale, Marsdale and Littondale) are all popular with tenants.
West Hull Villages
Two and three bedroom new builds remain extremely popular with prospective tenants – especially in the popular villages of Swanland, Anlaby and Cottingham.
We’re also seeing the yearly spike in interest from doctors, as they prepare for their new rotations in August. This is increasing demand for properties to the west of the city, and across the West Hull villages.
Our advice to all prospective buyers remains the same – buy the right properties in the right areas, and there are impressive yields to be made.
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 through our Search and Find service.
The service costs £450+VAT and is there to ensure you choose the right properties to fit your property investment objectives.
- The expert sourcing of a minimum of 5 properties, within your budget and in the locations we advise investing in to meet the requirements of your strategy.
- A full appraisal for each property, including recommendations on suggested works and associated costs to maximise rental yields.
- A full rental valuation on each of the properties, to provide a realistic picture of potential returns.
- Making recommendations on offers and negotiating on your behalf with the Estate Agent.
- Recommending mortgage brokers, insurance brokers and quotes from approved contractors to complete works as required.
Where required, we are also happy to oversee and project manage repairs and improvement works (fee dependant on scope of works).
Looking After Landlords and Tenants at CJ Property
At CJ Property, we’re committed to looking after our landlords, and to providing the best possible levels of service and value.
Our expert team is at the forefront of the industry, and we’re here to help you achieve your property investment goals.
Providing a proactive service, our mission is to ensure you are always prepared and armed with the information you need to make the right decisions for your 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.