Grimsby Buy-to-Let Guide

According to Rightmove, the average price of a property in Grimsby in 2023 was £143,373. The latest HM Land Registry UK House Price Index data shows that this is significantly cheaper than the UK average of £287,782. Additionally, Grimsby house prices were 3% down from 2022 and 4% up compared to 2020.

But it’s not just the Grimsby property market that’s been subdued this year; the UK market as a whole has been sluggish for the past twelve months, with modest growth in some areas and small amounts of negative growth in others.

So, is this gloomy outlook for Grimsby set to continue? Most property experts suspect that the property market will continue on its stunted trajectory well into 2024, but there will be a return to healthy growth in the next few years. According to Savills, the Yorkshire and The Humber region of England, where Grimsby is situated, is predicted to display mainstream capital value growth of 20.2% by 2027.

Learn More: Uncover the costs of buy-to-let and the best buy-to-let homes for sale with RWinvest’s market insights!

There are various suburbs and districts in close proximity to the town centre, such as West Marsh located in the north and Yarborough to the west. To the south are Scartho and Scartho Top, popular suburban areas. Grimsby DN31 has been identified as one of the country’s postcodes with the highest rental yields, with close proximity to University Centre Grimsby.

There are also towns and villages on the outskirts and outside of Grimsby, such as the seaside town of Cleethorpes and the villages of Healing, Waltham, and New Waltham.

West Marsh

Average Property Prices in West Marsh

The average property price in this area is £70,563
.

Average Rental Yield in West Marsh

The average rental yield in this area is 9.73%.

Average Property Prices in Scartho

The average property price in this area is £183,431.

Average Rental Yield in Scartho

The average rental yield in this area is 4.32%.

Average Property Prices in Cleethorpes

The average property price in this area is £162,845.

Average Rental Yield in Cleethorpes

The average rental yield in this area is 4.79%.

(Average property prices were taken from Rightmove in late 2023, and gross rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Grimsby to Invest in?

The inner districts closer to Grimsby Town Centre, such as West Marsh and Yarborough, have the most affordable property and also boast some impressive average rental yields.

Further out, villages such as Healing are much priceier and have some disappointing average yields.

The seaside town of Cleethorpes has a thriving tourism sector, so it’s possible to get into short-term letting or buy Airbnb property in this area.

As long as proper research is carried out into the best location, short-term lets can sometimes give a much better yield than standard residential property because the rental income will be much higher in certain seasons.

The lack of housing to meet growing demand has led to the increased popularity of new-builds across the UK – and Grimsby is no exception.

In 2020, Grimsby Town Centre received a multi-million-pound boost from the government to help reach the target of over 8,000 new jobs and nearly 10,000 new homes in Grimsby.

New-build properties can often fetch a higher price than standard residential properties on the market but require less maintenance or upkeep from owners. These developments are also typically outfitted with the latest eco-technology, meaning that energy costs can be reduced significantly – something appealing for tenants and landlords alike.

Considering recent trends – the rising cost of living and increased eco-awareness – investing in new-build properties could continue to skyrocket in popularity over the coming years.

More Information: Read our guide to new-build property in Manchester for the latest statistics and trends!

It’s easy to see why this small town has grabbed attention as a buy-to-let destination in recent years, but how does Grimsby compare to other UK regions?

For investors in search of high rental yields, looking North is a wise choice, especially compared to London buy-to-let, where the property is expensive, and it’s hard to find suitable yields.

Grimsby has a high average rental yield, which certainly makes it attractive to property investors, but Zoopla ranks other areas higher. This includes the nearby Hull with 7.03%, and major cities such as Liverpool with an average gross yield of 7.21%. Investors may feel more confident investing in an established city where rental demand is more guaranteed, and there’s likely to be stronger capital growth.

According to Savills, capital value growth is predicted to be just as high in the North West and North East of England as it is in Yorkshire and The Humber, potentially hitting 20.2% by 2028.

Further Reading: Explore North West property with our guide to buy-to-let in Bolton!