Hull’s Reputation As An Excellent Place To Invest In Property Continues To Grow

As we move through 2024, Hull’s reputation as an excellent place to invest in property continues to grow. Sitting proudly as Yorkshire’s only city on the waterfront, and with an abundance of regeneration plans in the works, it’s easy to see why more and more people are choosing to flock towards Hull. In this month’s area update, we’ll look at some excellent development opportunities within the city, as well as some current property prices, key postcodes, and the predictions for Hull up to 2027.

Ongoing Regeneration and Development

Hull has seen over £5 billion of investment within the last decade, leading to a shining reputation as one of the UK’s most sustainable, energy-efficient, and bustling cities. Two development opportunities are in the works that are set to bring even more job opportunities and residential areas to the city: Sutton Fields Industrial Estate and East Bank Urban Village. With the former a 7.5 acre plot, the development of the site would provide a strong employment offer and fulfil the City’s ambition to unlock employment on brownfield land within the city. The latter set to bring over 850 new homes. Hull Council are currently seeking a developer partner for the scheme. The councils vision offers high-quality apartments providing social rooftop areas and spaces for families outdoor play and integrated green spaces as well as private gardens and sports provisions.

Additionally, the recently submitted Hull and East Yorkshire Devolution Proposal for Levelling Up, Housing and Communities could have a massive effect on the city if it is approved. The proposal would bring more devolved powers to local authorities, which would include an investment of £400 million to be used to further develop the local economy and local communities, likely to attract even more renters and buyers to the area.

Which Postcodes Are Best For Your Investment In The Rental Market?

When looking at a postcode area with a view to expanding your portfolio, it’s important to consider factors such as the proximity to the city centre, the styles of housing in the area and the local amenities. The UK’s average rental yield rate is around 4.75% at the moment, but Hull’s top postcodes are demonstrating significantly higher averages, which is ideal if you’re seeking a long-term return on your investment. However, the postcode areas with the highest yield rates offer different local facilities which are important to take note of.

HU2 is the postcode area with the highest average rental yield, sitting at a large 10.8%, more than double the UK’s average. HU2 also has the lowest average house price of the top postcodes, at £102,153. This area is largely industrial and is populated by a number of one and two bedroom flats, which is ideal if you’re looking to rent to working professionals.

On the other hand, HU6 takes the 5th highest spot in terms of rental yield, at an average of 6.88%. This is still above the national average, albeit lower than some of Hull’s other postcodes, with the average property price at £147,287. This is a highly student-populated area sitting in the north of Hull, which could be beneficial if your goal is to acquire a HMO. The growing demand for HMO properties makes this a desirable option likely to bring you a steady stream of tenants.

HU1 is a popular choice of location if you are looking for a city centre property and it boasts an impressive average rental yield rate of 8.37%. It also has a lower average property price of £118,034 and it’s in an area rife with commercial and cultural opportunities.

Though HU5 gets our top vote, the area has been highly popular amongst renters and homeowners for decades and shows no signs of losing its top spot for popularity this is due to its excellent positioning and the amenities within walking distance.

Please though, go carefully as there are streets within postcode areas that we do not recommend buying in so do your research or entrust us with the search for your investment.

Predictions for Hull’s Future

With the wealth of development and regeneration taking place at the moment, it’s no wonder that the average property price in Hull has risen and is predicted to keep rising. The regeneration projects have engulfed Hull in opportunities, from residential and commercial, to cultural and environmental. This, coupled with Hull’s standing as one of the most sustainable cities in the UK, is driving up property prices within the area.

The average price of a property in Hull has increased since 2012, rising 55.2%, working out at £46,641. It has been predicted that properties in the area will increase by a further 11.7% by 2027, almost double the predicted increase of 6.2% expected to hit property prices in the UK as a whole. This highlights the excellent potential for  long-term returns on your investment, whether you’re interested in buying to let or buying to resell.

Final Words

Hull continues to stand out as a great place for investment or development opportunities. The continued renovation and regeneration going on throughout the city, the fair average property price, the high average rental yield rates and the predictions for the future of the city all prove promising for potential investors. But, as always, it’s important to stay on top of the changes to the property market within Hull and throughout the UK as a whole to ensure you’re acting strategically and making the most of the city’s glowing reputation.