phone icon callback
PROPERTY INVESTMENT

Hull

On Location

Property investment Hull

Commonly referred to as Hull, Kingston Upon Hull is the largest city in East Yorkshire. This strategic port city is undergoing a rapid transformation, building a bright future for itself following £1.5 billion worth of investment over the last eight years.

Since securing UK City of Culture status between 2017 and 2021, Hull has carved a name for itself as the cultural epicentre of Yorkshire, with some of its most iconic attractions and impressive landmarks injected with a lease of life in light of an £11 million government-funded regeneration.

Hull shows no signs of slowing down after almost a decade of record-breaking redevelopment schemes. A £27 million transformation of its historic fishing ports into a world-class waterfront destination for tourists and businesses is currently underway, with the £83.6 million Fruit Market regeneration at the forefront of the revitalisation.

Away from the waterfront, Hull’s city centre is rapidly changing, with planning now approved for the £96 million Albion Square development, which will feature new commercial, residential, and green spaces.

The careful restoration of existing city centre buildings into innovative living spaces like the recently completed £22 million Glass House building and the iconic BBC Building, plus the introduction of the £7 million K2 office building, are just a few examples of Hull’s revival.

For buy-to-let investors, the timing of Hull’s rise to prominence is arguably one of its strongest appeals, with several schemes coming to fruition in relatively short succession.

Those looking for a low entry-level market will be impressed by the value for money on offer and, with property values set to climb by 18.8% in Yorkshire by 2026, investors can secure equal, if not stronger, capital growth potential when compared to markets like London, Birmingham, and Manchester.


Is Hull a good place to invest in property?

Despite making great strides in recent years, Hull’s property market has flown under the radar of investors. However, with several regeneration projects completing soon, now is a great time to reassess what Hull has to offer Buy-to-Let investors.

ARE HOUSE PRICES GOING UP IN HULL?

Hull’s property market is a unique proposal offering buyers a lower entry-level onto the market. The average property price in the city is £157,576, significantly below the UK average of £270,708.

Looking to the future, Hull’s market has plenty of room for growth, with the latest forecast from Savills projecting property prices in Yorkshire and the Humber could rise by 18.8% over the next five years, more than three times the rate of growth in London.

Those taking a conservative approach should note that even if property values rise in line with the UK average, investors can secure increasing equity within their assets over the coming years. And if historical trends are anything to go by, the gap between house prices in the north-south divide is on track to close further, with cities like Hull offering investors some of the strongest gains on the market.

With a wave of investment already underway and the recent introduction of the government’s Levelling Up agenda, early investors entering this rising property market will be rewarded with the most substantial long-term growth potential.

Hull property investment at a glance

£157,576
AVERAGE HOUSE PRICE IN HULL IS APPROX. £157,576
£270,708
AVERAGE UK HOUSE PRICE IS APPROX. £270,708
18.8%
18.8% - 5 - YEAR HOUSE PRICE FORECAST – YORKSHIRE & THE HUMBER
13.1%
13 .1 % IS THE AVERAGE 5 - YEAR HOUSE PRICE FORECAST UK
NEW GOVERNMENT LEVELLING UP FUND
£mn+
SEVERAL MULTIMILLION - POUND DEVELOPMENTS COMPLETING SOON


Is Hull a good place to invest in property?

Despite making great strides in recent years, Hull’s property market has flown under the radar of investors. However, with several regeneration projects completing soon, now is a great time to reassess what Hull has to offer Buy-to-Let investors.

ARE HOUSE PRICES GOING UP IN HULL?

Hull’s property market is a unique proposal offering buyers a lower entry-level onto the market. The average property price in the city is £157,576, significantly below the UK average of £270,708.

Looking to the future, Hull’s market has plenty of room for growth, with the latest forecast from Savills projecting property prices in Yorkshire and the Humber could rise by 18.8% over the next five years, more than three times the rate of growth in London.

Those taking a conservative approach should note that even if property values rise in line with the UK average, investors can secure increasing equity within their assets over the coming years. And if historical trends are anything to go by, the gap between house prices in the north-south divide is on track to close further, with cities like Hull offering investors some of the strongest gains on the market.

With a wave of investment already underway and the recent introduction of the government’s Levelling Up agenda, early investors entering this rising property market will be rewarded with the most substantial long-term growth potential.

What is driving demand?

When it comes to Buy-to-Let property investment, it’s not just about expected capital gains, which is why the team at Surrenden Invest pays close attention to what is driving demand for rental properties in the areas we operate in. In this section, we explore why Hull is a profitable option for Buy-to-Let investors seeking a reliable rental income. For more information, check out these 5 reasons to invest in Hull.

Regional economic hub

The Demos-PwC Good Growth for Cities Index named Hull the third-most improved UK city as a place to live ahead of Birmingham, Hull, and Manchester, and it’s easy to see why.

Following £1.5 billion worth of investment over the last eight years and several multimillion-pound schemes nearing completion, Hull has positioned itself as a key economic hub in the North East of England.

More recently, Hull has been leading the rebound of Britain’s jobs market, ranking fourth in terms of its recovery rate. Moreover, despite the disruption caused by Covid-19, Hull’s employment rates were at their highest, with local wages rising faster than the national average and investment levels in the city reaching an all-time high. In fact, the 2020 Demos-PwC Index showed that Hull was amongst the then least affected cities economically by the pandemic.

With the number of jobs in Yorkshire and the Humber expected to grow by 45,000 by 2030, the demand for high-quality rental accommodation, particularly in desirable locations like Hull’s city centre, will rise.

Property investment Hull

The Bank is a new property investment in Hull that will provide high-quality apartments to the city centre’s rental market.

Fill out the form to request your copy of the brochure. 


Rising tenant demand

Hull’s prime location means it is never short of high calibre tenants. Young professionals working in one of the many global businesses located in Hull (Associated British Ports, Aunt Bessies, BP, Crown Paints, Ideal Standard, KCom Group, Reckitt Benckiser, Siemens Gamesa, and T.J. Smith & Nephew, just to name a few), the city has a large demographic of desirable tenants who wish to stay in high-quality apartments which reflect their lifestyle.

And it is not just the city’s strong economic outlook that attracts tenants. The rising cost of living has led to a sharp rise in the number of people relocating to more affordable locations like Hull, where prices are considerably lower but still provide all the benefits of living in a major city.

A university city

Even if you’re not considering letting your property to students, university cities offer investors the scope to achieve higher rental yields due to demand for student accommodation overflowing to the private rental sector.

International students and graduates are the most desirable tenants within this pool of would-be renters. Those studying from overseas often have a larger budget for higher-quality housing.

Located to the North West of the city centre, The University of Hull is one of England’s oldest universities. It has firmly established itself in the rankings across the most predominant league tables. In the Good University Guide 2021 ranking, it is placed in the top five universities in the North of England.

Around 16,000 students currently study at The University of Hull with international students making up roughly 10% of the overall university intake. According to the university, it adds £472 million to the local economy annually.

Investors holding rental property in a UK university city benefit from the cyclical influx of new students each academic year alongside graduates entering the private rental sector, which often can see yields rising year after year.

Centrally located housing close to employment opportunities is often the most sought-after option for graduates taking their first step onto the career ladder.

Excellent transport links

Hull is one of the UK’s most well-connected cities in the North of England, which gives it an appeal that few can rival.

In terms of infrastructure, the port city operates regular ferry routes to Europe and Hull is served two airports – both within an hour’s drive. In addition, direct rail services to London links Hull to the capital in around two hours and 40 minutes, whilst the M62 motorway connects Hull with its Northern Powerhouse neighbours Manchester, Liverpool and Leeds.

Castle Street, one of the busiest roads in Hull, is undergoing a £355 million improvement in a bid to ease travel on the A63 and futureproof access to the city’s most significant regeneration projects.

Hull’s global connectivity, plus access to all major cities via train, motorway and an impressive internal transport system, certainly open up plenty of opportunities for businesses, residents, and investors.

And, within a rising number of companies operating from the city, investment opportunities and the demand for Buy-to-Let property is likely to rise.

BIRMINGHAM
%PA202020212022202320242020-24
PRICES2.0%3.0%3.5%3.5%3.5%16.5%
RENTS3.0%3.0%3.5%3.0%2.5%15.9%

Hull property market

Compared to other Northern Powerhouse cities, Hull’s property market is still a relatively new sector in terms of regional growth. However, the fact that Hull is behind its counterparts makes it an appealing market for Buy-to-Let investors as it has plenty of scope for future growth and to mature as a market.

Figures released by HomeLet have shown that the average cost of renting in Yorkshire and the Humber has rapidly increased over the last 12 months, with the average new tenancy rising by around 7.4% year-on-year.

According to the report, an overall lack of rental property across the country continues to drive rents in an upward trajectory. With almost 230,000 new private rental properties required per year for the next ten years to meet demand, it is unlikely that the cost of renting a property will dramatically decrease any time soon.

For buyers considering Hull’s Buy-to-Let market, a low pipeline of only 10,000 new homes backed by Hull’s Local Plan over the next 15 years means that the demand for modern city centre accommodation, where space is a premium, will always attract renters and buyers.

Figures released by HomeLet have shown that the average cost of renting in Yorkshire and the Humber has rapidly increased over the last 12 months, with the average new tenancy rising by around 7.4% year-on-year.

According to the report, an overall lack of rental property across the country continues to drive rents in an upward trajectory. With almost 230,000 new private rental properties required per year for the next ten years to meet demand, it is unlikely that the cost of renting a property will dramatically decrease any time soon.

For buyers considering Hull’s Buy-to-Let market, a low pipeline of only 10,000 new homes backed by Hull’s Local Plan over the next 15 years means that the demand for modern city centre accommodation, where space is a premium, will always attract renters and buyers.

Hull property hotspot

Despite £1.5 billion worth of investment over a relatively short period, Hull is spearheading an ambitious and forward-thinking approach to its next chapter. The Council’s dedication to creating a greener, eco-friendly city is paving the way for how Hull will take shape over the next few years, positioning it as a global leader in green energy.

Hull is undoubtedly building on its success over the last eight years to deliver a unique offering to investors, businesses, and residents alike. These are just some of the reasons why the experts at Surrenden Invest believe it is destined to provide our clients with robust returns. Factoring current market conditions and future growth, Surrenden Invest has acquired a limited number of city centre apartments in Hull that offer our clients the opportunity to own a new-build apartment in an area where space is a premium.

Having flown under the radar for some time now, Hull’s strong market fundamentals are likely to attract the attention of investors who are looking for better value for money or an opportunity to diversify. With rising demand and a lower-than-average pipeline of new-build properties, Hull clearly represents investors with an opportunity to capitalise on this up-and-coming market.

Property for sale Hull

Those considering property for sale in Hull should consider city centre opportunities like The Bank. Exclusive to Surrenden Invest, apartments in The Bank allow investors to own a new-build apartment in Hull’s city centre and capitalise on the rising demand for high-quality rental properties in the heart of the city.

DUE TO INVESTOR DEMAND, THERE IS A LIMITED NUMBER OF APARTMENTS AVAILABLE WITHIN THE BANK, HULL. CONTACT SURRENDEN INVEST TO FIND OUT MORE ABOUT PROPERTY INVESTMENT IN HULL AND TO REQUEST YOUR COPY OF THE BROCHURE.

 

Download your Hull market essentials guide for 2022

Property investment in Hull is set to outperform the UK average and regional hotspots. Find out where to invest for the best rental returns and capital growth.

Download Now

Stay ahead

Register your details to receive the latest market updates and property development news.