Seaside investments yield scorching returns for landlords
Thursday 09 June 2016
Soaring house prices at Britain’s seaside towns may offer BTL investors with their eyes on long-term profits a potential path to attractive opportunities.
The Dorset resort of Sandbanks was named Britain’s most expensive seaside town – after a survey found house prices have risen by over 30% in the last decade to reach an astonishing average of almost £665,000.
Salcombe, also in Dorset, was placed second in the Halifax bank’s annual review of the country’s coastal towns.
The most expensive seaside properties are to be found in the South-west while Scotland boasts some of the least expensive, with houses in Port Bannatyne, on the Isle of Bute, West of Glasgow, typically selling for £77,132.
Prices rocketing by nearly 140%
Fraserburgh, in Aberdeenshire, has seen prices rocket by nearly 140%, with average houses prices rising from £63,540 ten years ago, to £151,719 today.
Outside of Scotland, the biggest increases in property prices since 2006 have been in Brighton, Whitstable, Shoreham By Sea, Leigh on Sea and St Mawes.
But most British seaside towns are still proving popular with people looking to buy a holiday home, or invest in BTL, or just to downsize and retire.
Looking further afield than the eye-watering prices along the spectacular Jurassic Coast of Dorset may suit many investors.
According to a recent report by the HSBC bank, the country’s top two buy-to-let hotspots are Southampton and Blackpool.
Landlords in Southampton have average rental yields of 7.82%, based on average property prices of £138,311, while Blackpool averages 7.81% yields on properties which average £75,943.
So besides the soothing effects of sea and sand, buckets and spades, chips and ice-creams, it is clear that the prospects for BTL investments in the great British seaside town are likely to be a lot sunnier – and much more certain - than the guarantee of good weather.
We want to add value to landlords with interesting news and views! Our Hub includes information and opinions on the housing market from a variety of expert sources – please just be aware it doesn’t always reflect Simple’s opinion, or the products and services we provide.