Hull Property Owners are Sitting Pretty
Property investments are often seen as safe, profitable investments and that certainly is the case in cheap, rapidly developing areas like Hull. In fact, these properties may become more than just safe investments if stagnant southern markets overheat; it’s possible that they may acquire value as buyers look to add safe investments to their property portfolio.
However, this isn’t true everywhere according to recent research by Savills estate agency, which shows that ultra high value areas like London, often seen as the honey pots of the property market, are seeing demand levelling off. This, combined with continually rising prices in many high value areas, could indicate a dangerously fragile high value property bubble on the edge of bursting according to some investment companies.
If this happens, and indeed when it has happened in the past, property buyers often look to cheaper properties with relatively high rent returns to reinforce their portfolio while fragile markets become more stable. The upshot of this is that areas like Hull are likely to see short, sharp property price rises because they are exactly the kind of developing, high return markets these buyers want. While it’s always tempting to put off property purchases in a market with an uncertain future (and what market doesn’t have an uncertain future today?), it is well worth taking the decision to buy now. This is because Hull looks set to actually benefit from the fallout from a bursting of the high-end property bubble in the same way that some start-up companies benefit from market crashes.
Hull has recently been ranked as the second best value place for buy to let purchasers in the UK. Only Manchester has better rent returns than this emerging Northeastern city. In addition, Hull is the cheapest city in the rent return top ten by some distance. It has always proven true that developing property markets with high returns such as this one tend to do consistently well. This is because, while the most overheated markets fail to show any real, measurable value, owners in developing markets can point to high rent returns. While ‘statement properties’ and London rents seem less appealing in hard times compared to cheaper alternatives, the already cheap Hull rents still provide good value for tenant and landowner thanks to low house prices. In other words, because Hull is one of the cheapest cities in the UK, the only way is up.
As a developing city, Hull’s prospects are also more than desirable. New jobs of all types are coming into the city thanks to projects such as the Siemens wind turbine plant and the biomass developments. The city is also becoming a more desirable place to live thanks to its status as City of Culture 2017 and the attached leisure and tourism developments. So, while those who own property elsewhere may be starting to worry, Hull landowners are sleeping comfortably in their beds.
We’re Chris and Tony Hodgson, a father and son team that’s worked together for years. Our professional and friendly approach to doing business has helped us to grow our portfolio and deliver customer satisfaction across the city. Get in touch on 01482 342155 or email firstname.lastname@example.org to invest in Hull property today.