Hastings Buy-to-Let Guide

According to Rightmove, the average price of a property in Hastings in 2023 was £318,970.

This is more expensive than the average price for the UK overall, which was £287,782 in October as per the HM Land Registry UK House Price Index. However, this is cheaper than the South East region’s average of £389,223, making Hasting a top choice for those looking to invest in property in this region.

The South East is one of the most expensive regions for property in the UK. In fact, it has the most expensive average buy-to-let property outside of London, according to Zoopla.

The South’s property market has generally had a bad year, displaying sluggishness and even some small amounts of negative growth in some areas. However, in 2023, Rightmove states that Hastings’s property was up 7% compared to the previous year and 26% when compared to 2020. SussexWorld has reported that Hasting house prices increased more than the South East average earlier this year.

But are property prices in Hastings set to keep increasing? Most experts agree that the UK property market will likely continue its subdued trajectory well into 2024, but the forecasts for the next few years are more optimistic. Savills predicts that by 2028, the South East’s mainstream capital value growth will return to healthier levels – 16.7%.

Learn More: Uncover the latest buy-to-let rules and what to look for in a buy-to-let property with our recent guides and insights!

Hastings Town Centre is a commercial and residential area, and a popular sub-district is the Hastings Old Town. Near the town’s seafront locations, it’s possible to find a property with sea views.

Areas to the east, such as Ore and West Hill, are more expensive than those to the north of central Hastings, like Blacklands. The west of Hastings is popular with commuters who work in Eastbourne and Bexhill.

There are also some separate areas outside of Hastings worth a look, such as Fairlight, St. Leonards-On-Sea, and Bexhill-On-Sea.

Hastings Old Town

Average Property Prices in Hastings Old Town

The average property price in this area is £323,476.

Average Rental Yield in Hastings Old Town

The average rental yield in this area is 3.53%.

Average Property Prices in Blacklands

The average property price in this area is £268,558

Average Rental Yield in Blacklands

The average rental yield in this area is 4.41%.

Average Property Prices in Bexhill-On-Sea

The average property price in this area is £350,155.

Average Rental Yield in Bexhill-On-Sea

The average rental yield in this area is 3.55%.

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

What is the Best Area of Hastings to Invest in?

Overall, rental yields in Hastings are not that high, and it may be hard to find a good property deal. Suburbs north of central Hastings, such as Blacklands, tend to be more affordable than other locations, making this an area with good potential.

Property in Fairlight is much more expensive than in Hastings, so rental yields can be disappointing. But this nearby village is popular for short-term lets, so it’s an option worth exploring for investors interested in the area.

Potential for Short Lets

The short-term letting sector in Hastings has been growing rapidly as websites like Airbnb have had a massive impact on the property industry, making it easier to manage and advertise a holiday letting rental property.

Hastings is a popular choice for staycations, offering visitors beaches and historical attractions in a quaint town setting packed with artsy shops and cafes.

Engaging with Airbnb property investment can sometimes result in a higher return on investment than a standard residential tenancy. If prices are adjusted to reflect seasonal popularity and the location is carefully selected, investors can make big returns on holiday lets.

Regeneration

Some parts of Hastings have had a reputation for being in decline in the past, but the local council are revamping areas across the town through some sizable regeneration programmes.

The Hastings Town Deal is an ambitious regeneration plan that was awarded £24.3 million through the Government’s town fund, giving Hastings a much-needed investment boost. The scheme involves various projects aiming to give the town centre a full facelift and improve town attractions such as Hastings Castle and the Creative Quarter.

With increased levels of regeneration typically comes higher levels of interest from private developers. Considering the plans for Hastings, this could lead to more buy-to-let opportunities in the area.

For the reasons listed above, new-build properties usually inspire significant interest from tenants and investors alike due to their advantages over standard residential properties available on the market. However, the major drawback to this strategy is the higher price point that can come alongside.

One way to reduce this fee is through off-plan property investment – essentially purchasing a property while it’s still in the construction phase of development. This means that investors can buy a property at a reduced rate and have the option of paying their fees in stages rather than paying the entire price from the onset.