Hull is on the up, and the city is quickly becoming a property investment hotspot. It’s easy to see why – low purchase prices, good yields and a buoyant rental market make it ideal for investors.
This month, as part of our ongoing series (If you haven’t done so already, check out our Property Investor’s Guide to HU7), we’re looking at HU10, to the west of the city. An aspirational post code that’s popular with young professionals and families, it provides excellent opportunities for investment.
Location
HU10 is a fairly expansive post code, located at the western edge of the city. Home to around 13,500 residents, it encompasses several popular East Riding villages, including Anlaby, Willerby, Kirk Ella and West Ella.
Unlike some of the more popular areas with investors, such as HU7 and HU5, HU10 is a more affluent post code. It’s an aspirational area of the city that’s popular with both families and young professionals, and has an excellent reputation.
The post code is predominantly residential, but is also home to several supermarkets, restaurants, shops, parks, leisure facilities and rural spaces. It’s also home to some of the city’s best schools. HU10 has excellent transport links, with Willerby Road and Anlaby Road providing an easy route into town for commuters. The A164 runs through HU10, providing links to Beverley in the North, and the Humber Bridge and A63 in the south.
Properties
HU10 is home to a wide variety of different property, from affordable terraced housing and flats to the East of the post code, right through to some of the city’s most exclusive, expansive (and expensive) detached family homes in West Ella and Kirk Ella.
For investors looking to start a portfolio – we recommend searching for properties in the areas to the East of the post code. Specifically, investors should look towards the streets coming off Kingston Road and Springfield Way. This area (including streets like Gorton Road, Wolfreton Road and Grimston Road) offer affordable property, whilst being close to all the local amenities and schools.
They are popular with young professionals, and families – and there is always high demand for rental property.
Market analysis – Zoopla – May 2017
Property values
Average property values in HU10 are: £232,708
To break this down, average prices for two bed properties stand at £144,779.
However, it’s important to remember that the HU10 post code includes many of Hull and East Riding’s most exclusive properties (The average value of properties in West Ella is £568,766!), which skews these figures considerably.
Investors shouldn’t be put off – two bed properties in rentable condition towards the East of the post code can be bought for under £100,000, with renovation properties available for significantly less.
Rental values
Average rents across HU10 are £572 pcm, with average rents for 2 bedroom properties standing at £571 pcm.
Potential yields and real world opportunities
HU10 offers average yields on two bed rental properties of around 4.75% – but again, these figures do not provide an accurate representation of potential opportunities for investors.
In reality, 2 bedroom terrace properties can be obtained for significantly under £100,000, and three bed terraces for under £110,000, and gross yields of 7% or more can be realistically achieved. Get things right, and it’s possible to get property at HU5 prices, (significantly less) with a desirable HU10 postcode, and higher rents.
When considering these figures, it’s also important to consider the quality of tenants in HU10 – the area is popular with families, and there is a dearth of rental property. Investors can expect properties to let quickly, and a higher proportion of long-term, family renters. In turn, this keeps void periods down, and helps to cut the costs associated with changing tenants.
Hull Buy to Let Property Advice from CJ Property
There has never been a better time to start investing in Hull, and there are opportunities for Hull property investors looking at HU10. However, as with all investments, there are also real risks, which is why it’s so important to get advice from a local property expert before you buy.
At CJ Property, our team are property management experts – and we’re here to help you make the right decisions when it comes to investing in buy to let property in HU10, and across Hull and East Yorkshire.
Our local team of property professionals has vast knowledge and unrivalled experience in the local market, and we can help you at every step of your investment journey – from finding the right, desirable properties in the right areas, to looking after your portfolio and managing it on your behalf.
