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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.