Hull City Property Investment Guide: Location Breakdown

Population and Job Growth

Hull city centre has seen significant population and job growth in recent years. The population of Hull increased by 5% between 2001 and 2011 and is expected to continue growing. Additionally, Hull has been named as one of the top 10 cities in the UK for job growth, with employment levels rising by over 10% since 2014. This growth is largely due to significant investment in the city, particularly in sectors such as manufacturing, health, and the creative industries.

This population and job growth is great news for property investors, as it indicates a strong demand for rental properties in the city centre. As more people move to Hull for work and to live, the demand for housing will continue to increase. This, in turn, will drive up property prices and rental yields, making Hull a potentially lucrative location for investors.

However, it's worth noting that the growth in population and jobs is not evenly spread across the city. Some areas are experiencing faster growth than others, so it's important for investors to do their research and focus on areas that are likely to see the most growth in the coming years of which we can help direct you.

Property Prices

One of the most important factors to consider when investing in property is the average prices in the area. Hull has seen steady growth in property prices over the last few years. According to Zoopla, the average property price in Hull currently stands at £142,000, which is up by 3.63% from last year. However, the city still offers relatively affordable prices compared to other major UK cities, making it an attractive option for property investors.

When looking for a property investment, it is important to research the specific location and the types of properties available. Hull city centre offers a range of options, from spacious apartments to traditional terraced houses. Prices vary depending on the size and location of the property, but there are plenty of affordable options available.

It is worth noting that investing in the right property at the right time can offer a good return on investment. While past performance is no guarantee of future success, Hull's property prices have shown a steady growth trend, indicating that there is potential for growth in the future.

Historical Growth

When considering a property investment, it is important to analyse the historical growth of the area. In Hull's city centre, property prices have been steadily increasing in recent years, making it an attractive location for property investors. According to Zoopla, the average price for a property in Hull city centre typically being apartments is around £100,000 as of summer of 2023.

Historically, Hull has been a key trading hub for the North East region and has seen a lot of growth due to its location, transport links and main port. Additionally, recent regeneration investment in the city has brought new life and energy to the area, making it even more attractive to investors.

In terms of rental yields, Hull has a relatively high average yield of around 7% for the traditional type of buy-to-lets, making it an appealing prospect for buy-to-let investors. The city's growing population and economy are also positive indicators of future growth potential, making it a smart choice for those looking to invest in property.

Overall, the historical growth of Hull, coupled with recent regeneration investment and a strong rental market, suggest that it is a great location for property investment.

Local Regeneration Investment

Hull has undergone a significant regeneration programme in recent years, aimed at attracting investment, creating jobs and improving the overall infrastructure of the city. The most notable project is the Hull City Plan, a £250 million scheme that aims to transform the city centre into a vibrant and sustainable place to live, work and visit.

The project includes the development of new housing, office space and retail outlets, as well as the improvement of public spaces and the creation of new green areas. In addition, the city has received funding from the government's Northern Powerhouse scheme to improve transport links and infrastructure, making Hull an even more attractive location for businesses and investors.

Another significant regeneration project is the Hull City of Culture 2017, which saw the city hosting a range of events and cultural activities that attracted millions of visitors from around the world. This has helped to raise the profile of Hull as a destination and increased interest in the city as a place to live and invest.

Overall, the regeneration investment in Hull is a positive sign for property investors, as it suggests that the city is committed to growth and development, which in turn could lead to an increase in demand for property. Investors who are looking for a location with a strong long-term growth potential may want to consider Hull as an investment option but let’s dig in some more.

Average Rental Yields

When investing in property, one of the key factors to consider is the potential rental income you could earn. In Hull city centre, the average rental yield currently sits at around 7%. This means that for every £100,000 you invest in a property, you could expect to earn £7,000 per year in rental income.

It's worth noting that rental yields can vary depending on the specific area and type of property you invest in. For example, a one-bedroom flat in the city centre may have a higher rental yield than a three-bedroom house on the outskirts due to demand and supply within the city, and of course, the price you are paying.

It's also important to factor in any additional costs associated with renting out a property, such as management fees and maintenance costs. However, with the demand for rental properties in Hull currently outweighing supply, investing in a buy-to-let property could be a wise choice for those looking for a long-term investment.

In Hull City, the average rental yield stands at 7%, with certain areas offering a yield of up to 8.5%. HM Land Registry data suggests that the cost of rental properties in Hull City has surged by 9.2% in the last year. Meanwhile, the average monthly rent collected in the city is £874 - a rise of 7.6% on last year's rents.

Student Sector -

Hull City draws in more than 40,000 students from across the UK and overseas, with the University of Hull featuring among the top universities in the country. Every year, around 55% of graduates decide to stay in Hull City, strengthening the young professional tenant base. For purpose-built student accommodation (PBSA) you can achieve rents ranging from approximately £600 a month. The cost of a studio varies from £65,000 to £80,000, depending on its size. In Hull, PBSA is highly sought after, yet rarely found on Right Move as a testament to the market demand and relatively low entry price. Investing in student housing yields an average of 8%, making it an ideal choice for those looking for a high rental income and an easy exit strategy.

Serviced Accommodation -

Hull City's average nightly rate amounts to £75 but can climb up to £120 per night depending on seasonal fluctuations and local events. Every year, Hull attracts 6 million visits, Hull City alone welcomes nearly 150,000 of them, with fifty-eight thousand of them here for leisure and over 75,000 visiting for work purposes. One-to-two-bedroom apartments offer a homely vibe and are the most popular when it comes to short-let bookings which can fetch a yield of over 9%; a highly profitable property option if you research the right apartment in the right area. Below are the businesses you are likely to attract under the serviced accommodation model:

Is Hull A Good Area To Invest In Property?

With Hull undergoing major regeneration projects, the city is quickly becoming desirable for property investors. Over the past few years, Hull has seen significant growth in both its population and job market, indicating a promising future for property investment.

The city's population has seen a steady increase, with a total population of 264,000 residents. The city's diverse population means there is a demand for various types of properties, from student accommodation to family homes.

The job market in Hull is also on the rise, with key industries such as renewable energy, healthcare, and education providing significant employment opportunities. The growth of these sectors is expected to continue, with various companies announcing plans to invest in the city.

Property prices in Hull are currently lower than the UK average, making it an attractive location for those looking for affordable investments. The average house price in Hull is currently £142,000, significantly lower than the national average of £237,000.

Regeneration investment is a crucial factor when considering property investment in Hull. The city has undergone significant regeneration, with the city centre and the Fruit Market being a prime example of successful redevelopment. This regeneration is set to continue, with the Hull City Council committing £100m to improving the city's infrastructure.

Average rental yields in Hull are attractive for investors, with an average yield of 6.1% in the city centre. This figure rises to 7.7% in areas such as Anlaby, Holderness Road, and Newland Avenue.

Historically, Hull has seen steady growth in its property market. According to Zoopla, the average property price in Hull has increased by 26% in the past five years. This growth, combined with the promising prospects, suggests that Hull is a good area to invest in property.