Northern seaside towns top rental yields table in England and Wales
Wednesday 06 July 2016
New figures show that Hull tops the league table of seaside postal areas for landlords because it offers the best average rental yields.
According to new research from property investment firm LendInvest, buy-to-let investors can realise yields of up to 10.7% in the resort town of Withernsea, 17 miles east of Hull.
Blackpool is second with rental yields of 8.2%, with Colwyn Bay, North Wales, in third place at 6.1%.
These locations are followed by Barry in Cardiff, where yields of 6% are to be found, while Caister on Sea, near Norwich, and Egremont, in Cumbria, tie on 5.7%.
But-to-let investors may also be attracted to Northern and Welsh resort towns as prices soar along the Southern coast, with Sandbanks in Dorset recently named as Britain’s most expensive seaside town.
The survey by the Halifax bank found that the cost of an average property there had rocketed by over 30% in the last ten years to nearly £665,000. The news comes as several seaside towns in the South have held referendums to ban the building of second homes, with more votes in the same vein expected.
High demand from renters
In this respect, Northern coastal towns are becoming much more attractive to landlords as they often enjoy high demand from renters and have the potential to earn cash as holiday homes in the summer months.
Christian Faes, chief executive officer of LendInvest, said the firm’s research showed that the ‘right Northern seaside towns could prove a lot more lucrative’ for investors then their Southern counterparts, and the data backs this up.
Morecambe in Lancashire and Scarborough in Yorkshire have average rental yields of 5.5% - outstripping top performers Ramsgate in Kent and Portslade in Brighton, which only offer 5.2% - less than half of the returns that can potentially be enjoyed in Withernsea.
Although would-be landlords are strongly advised to research demand and competition, it seems as if the Northern coast offers profitable opportunities for the discriminating investor.
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