Table of Contents
I feel investors must consider the ongoing and future growth aspects of a location before making investment decisions. This strategic approach mitigates risks.
And also maximises the opportunity for returns. It ensures a more informed and successful investment journey. Hull is a vibrant port city in East Yorkshire. It has emerged as a compelling destination for investors due to many factors.
Some of the vital elements are listed below. Hull is rapidly becoming a hub for innovation and commerce. These elements altogether stand out Hull as an attractive investment opportunity.
Why Invest in Hull?
Economic Growth
To understand this have a look at the below two graphs-
Graph 1: This graph shows a comparison of the number of active businesses between the UK and Hull specifically for the year 2022.
Source: ONS
Number of Active Businesses in Hull vs. UK Average:
- Hull has 7,765 active businesses in 2022, as represented by the blue line.
- The UK average for active businesses is 5,693. It is represented by the purple line,
- This shows that Hull has 2,072 more active businesses than the UK average for the same period.
Trend from 2017 to 2022:
- Hull’s active businesses have shown steady growth over the five-year period. The increase of 1,065 businesses from 2017 to 2022 reflects positive economic momentum and resilience within Hull.
- The UK average has remained relatively stable over the same period. There is no significant increase or decline in the number of active businesses.
Growth Rate:
- Hull’s growth in active businesses (an increase of 1,065) suggests a higher growth rate compared to the national average, which appears more stagnant. This could indicate stronger local policies, regeneration projects, or sector-specific opportunities in Hull driving business activity.
Implications for Hull’s Economy:
- The consistent upward trend in Hull reflects a healthy and expanding local economy. As more businesses establish themselves in the city it contributes to job creation. Plus it attracts a wider workforce and further drives Hull’s reputation as a property investment hotspot.
Graph 2: This graph is related to Business Births. Representing the number of new enterprises formed in 2022.
Source: ONS
Hull shown with the Blue Line:
- 1,350 business births in 2022.
- Shows a significant increase of 500 businesses compared to 2017.
UK Average shown with the Purple Line:
- 593 business births in 2022.
- This figure is much lower than Hull’s performance in the same period.
Higher Business Birth Rate in Hull:
- Hull has more than double the business birth rate compared to the national average. This is showcasing strong entrepreneurial activity within the city.
- This trend reflects a supportive environment for startups and new enterprises. It is possibly due to incentives plus affordable spaces and access to local markets.
Steady Growth Over Time:
- Hull’s business births have consistently risen since 2017. This shows robust local economic growth and increasing investor confidence.
- The rise of 500 new businesses over five years suggests a proactive effort in fostering enterprise development. It is potentially aided by regeneration projects and economic diversification.
Lagging National Average:
- The UK average has remained relatively flat over the same period, with no noticeable increase in business births.
- This highlights Hull’s outperformance, likely due to its local focus on entrepreneurship and the region’s affordability compared to other UK cities.
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Transport and Connections Links
Kingston upon Hull offers excellent transport links. They intend to make the city a standout property investment hotspot. The area has proximity to the M62 motorway and the Humber Bridge.
This ensures seamless access to Lincolnshire and major cities which is appealing to target tenants and commuters. The Hull Paragon Interchange provides direct rail connections to York plus Sheffield and London. It makes investment property near these hubs highly desirable for strong rental yields and minimal void periods.
International connectivity adds further appeal. Humberside Airport offers daily flights to Amsterdam. While the Port of Hull is a crucial gateway for trade. The port handles millions of tonnes of cargo. It also provides ferry routes to Rotterdam and Zeebrugge. These links attract professionals working in logistics with trade and port operations. It boosts demand for rental properties.
Hull’s local transport system is equally efficient. It comes with reliable bus routes and a popular Park & Ride service. The routes connect areas like Newland Avenue and West Hull.
14 Best Areas for Buy to let Investment In Hull
Hull City Centre (HU1)
£135,278
6% - 8%
3,539
Investing in Hull City Centre is like stepping into the heart of Kingston upon Hull. There are excellent transport links connecting the city with major UK cities. This includes the close proximity to Hull Paragon Interchange. It is no wonder why this place is a prime choice for property investors. The average property prices here remain affordable compared to the UK average. This makes it a hot spot for high rental yields. The Fruit Market and Old Town in particular are seeing a surge in interest. It is due to their modernisation and good local amenities. I would suggest if you are aiming to attract young professionals then this area ticks all the right boxes. Plus the central location ensures strong tenant demand and minimal void periods. Especially with new developments popping up.
Sutton on Hull (HU7 and HU8)
£160,567
4.08%
12,649
For investors seeking a quieter area with strong community ties Sutton on Hull stands out. Located in the northeast of the city this suburb offers a mix of older properties and newly built housing. It is ideal for creating a balanced property portfolio. The average house prices are relatively low. This means that investment opportunities here often come with fewer upfront costs. Its charm lies in its village-like feel. While still being close enough to Hull City Centre for easy commuting. With good schools plus green spaces and reliable transport links this area offers stability and consistent rental yields.
Cottingham (HU16)
£251,300
6% - 8%
14,423
Cottingham is often regarded as one of the largest villages in England. Cottingham combines rural charm with urban convenience. Located in East Riding this area is a favourite among potential tenants. This is due to its relaxed atmosphere and proximity to the University of Hull. Property investors will find Cottingham an appealing choice. Especially if you are targeting student accommodation or young professionals. The rental market is stable and properties here offer fewer maintenance issues. Particularly in newer developments. It is a great area for building a diverse property portfolio.
Bransholme (HU7)
£105,419
6.64%
Over 30,000
If you are searching for affordable property options then Bransholme in North Hull deserves a closer look. It is known for its large housing estates. This area offers budget friendly investment property opportunities. Plus it also offers decent rental yields. The ongoing regeneration projects have added to the area’s appeal. It is improving in terms of amenities and overall property values. Bransholme might not have the glamour of Hull Marina. But it is a suitable look for investors aiming to maximise returns without significant upfront costs.
Stoneferry (HU7)
£147545
4% - 6%
Part of Kingston upon Hull - 323,000
Stoneferry is an up and coming area with potential for capital growth. It is located close to the River Hull. The area offers a mix of residential properties and newer developments. Its central location means easy access to Hull City Centre and nearby local amenities. This is the key feature that draws a variety of target tenants. Property prices in Stoneferry are still relatively low compared to other areas in Hull. This makes it a great option for those starting out or expanding their property portfolio.
Hessle (HU13)
£223,301
4% - 5%
15,486
Just west of Hull Hessle combines modern living with a touch of history. The Humber Bridge acts as its backdrop. Hessle offers investment opportunities that appeal to tenants looking for a mix of city and countryside. Rental property here benefits from good transport links and a thriving high street. Investors can choose from older properties. These may require updates or newly built housing with fewer maintenance concerns. The area is experiencing growing demand and reasonable property prices. Hessle is an excellent option for long term property investment.
Willerby (HU10)
£233,926
4% - 6%
19,261
Willerby is another gem in West Hull. It is known for its good local amenities and quiet neighbourhoods. This suburb is perfect for investors seeking low property prices. That too with the potential for solid rental yields. Its proximity to retail parks and transport links makes it attractive to different tenants.
Princes Avenue (HU5)
£140,000
6% - 8%
Part of Kingston upon Hull - 323,000
Princes Avenue is a lively area ideal for property investment Hull. It is known for its vibrant dining and nightlife scene. The rental market here is buoyant with tenants drawn to the energy of the area and its proximity to Hull City Centre. Average property prices are competitive. This is making it a favourite for those looking to generate high rental yields. If you are after an area with consistently high demand then this is a top choice.
Newland Avenue (HU5)
£165,000
6% - 8%
Part of Kingston upon Hull - 323,000
Newland Avenue comes with some similar points to Princes Avenue but also has its own unique character. Newland Avenue is another great spot for property investors. The area is close to the University of Hull. This makes it perfect for student accommodation. Rental yields here are generally strong due to high demand. And the presence of shops, cafes, and transport links adds to its appeal. It has a perfect blend of affordable properties and vibrant energy. This transforms Newland Avenue as a solid choice for investment opportunities.
Kingswood (HU7)
£297,013
4% - 6%
15,022
Kingswood is one of the newer areas in Hull. It offers modern housing estates and retail facilities. It is ideal for investors who prefer newly built housing. It is located in North Hull. Kingswood provides easy access to the city and nearby shopping centres. Its property values are steadily climbing. This is making it a smart pick for capital growth.
Anlaby (HU10)
£219613
4% - 5%
10,304
Anlaby is located just outside Hull. The area is known for its community feel and affordable property options. Investors can find a mix of older properties and modern developments. With the recent rise in rental demand here Anlaby is becoming increasingly attractive. Especially for rental property investment. It is a great choice for those looking to build a property portfolio.
Victoria Dock (HU9)
£169,950
6% - 7%
15,495
Victoria Dock offers waterfront living close to Hull City Centre. It is making the area a desirable location for young professionals. This area combines modern flats and houses with scenic views of the River Humber. Properties here typically command higher rents resulting in excellent gross yields. The local amenities and proximity to Hull Marina enhance its attractiveness. These factors ensure steady tenant demand.
Beverley (HU17)
£278,078
4% - 5%
30,927
Just a short distance from Hull Beverley is a historic market town with excellent investment opportunities. Its charm is coupled with good transport links. It makes the area a popular choice for tenants. While property prices here are higher than in Hull. The potential for capital growth and reliable rental yields makes it a worthwhile option for long term investors.
Hornsea (HU18)
£227,200
4% - 6%
8,787
For those interested in coastal properties Hornsea is a fantastic option. The area is located on the East Yorkshire coast. This town offers a mix of traditional homes and modern developments. Rental yields here can be attractive especially during peak seasons. Its peaceful atmosphere and affordable property prices make Hornsea a unique addition to any property portfolio.
Market Analysis
Average Property Prices in Hull
Hull stands out as one of the most affordable property investment hotspots in the UK. The average property prices in Hull are significantly below the UK average. This is one of the reasons property investors are increasingly drawn to this East Yorkshire city. As of recent market trends the average house price in Hull hovers around £144,000. It depends on the area as various areas within Hull hold different property prices. This has been discussed above.
Here is the average price of different types of properties in Hull.
| Property type | Current average price | Average Rental | Rental yield |
|---|---|---|---|
| Detached | £337k | £856 | 3.05% |
| Flat | £101k | £496 | 5.89% |
| Semi-Detached | £193k | £653 | 4.06% |
| Terraced | £133k | £605 | 5.46% |
Rental Yield
Hull has become synonymous with high rental yields. This makes it a standout location for property investment in the UK.
Note that every source has different stats. These data were taken from the reports of the Office of National Statistics.
By how many bedrooms there are in a property, average rents as of October 2024 in Kingston upon Hull were:
- One bedroom: £439
- Two bedrooms: £545
- Three bedrooms: £655
- Four or more bedrooms: £881
Taking the data instead by property type, average rents were:
- Flats and maisonettes: £496
- Terraced properties: £605
- Semi-detached properties: £653
- Detached properties: £856
Regeneration Projects
| Regeneration Projects | Investment Amount | Description |
|---|---|---|
| Albion Square Development | £96 million |
|
| Spring Bank Conservation Area Revitalisation | £2 million |
|
| Orchard Park Housing Redevelopment | £156 million |
|
| Levelling Up Partnerships | £20.4 million |
|
Conclusion
Hull has cemented itself as a top contender for property investment. It offers a rare blend of affordable property prices and high rental yields. With all these it also promises capital growth. The city holds ambitious regeneration projects along with a thriving local economy and excellent transport links. It presents unparalleled opportunities for property investors. There are key areas like Hull City Centre with Newland Avenue and Victoria Dock. These areas cater to a diverse range of target tenants. This ensures strong demand and minimal void periods. As one of the most affordable UK cities Hull combines immediate investment returns with long term growth potential. This makes it a strategic choice for building a robust property portfolio.
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