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Scarborough Buy-to-Let Guide

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    Everything You Need to Know About Scarborough Buy-to-Let

    Scarborough is one of the UK’s most famous seaside resorts. Situated in North Yorkshire, it’s the largest town on the Yorkshire coast. As an attractive destination for retirees and holidaymakers, many wonder if the area has the same draw for property investors.

    So, are Scarborough property investors having a day at the beach? Or is the outlook grey for buy-to-let investment in the seaside town? Read the RWinvest buy-to-let property guide to Scarborough to find out!

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      Buy-to-Let Property Prices in Scarborough

      According to Rightmove, the average price of a property sold in Scarborough over the past year was £197,654. This is significantly lower than the UK average price of £284,691 as stated by the UK House Price Index, suggesting that Scarborough is a relatively inexpensive area to buy property.

      Scarborough’s average property price is 2% down on the year before, 6% up when compared to the 2021 peak. This sluggish growth has been seen across the UK property market in 2023, with some regions displaying subdued price growth, and the more unlucky regions experiencing modest dips. Scarborough’s prices have dropped slightly but they are still up on the 2021 peak.

      But will this muted property market continue in Scarborough? According to most property experts, the UK property market is set to return to growth in the next few years. Looking at Savills’ Residential Market Forecast, UK mainstream capital value is projected to grow by 17.9% leading up to 2028. Yorkshire and the Humber, where Scarborough is located, is forecast to experience 20.2% capital value growth by 2028, higher than the UK average.

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      Buy-to-Let Rental Market in Scarborough

      According to, the average monthly rent for a property in Scarborough is £663. This is much more affordable than the UK average rent, which is £1262 per month per the HomeLet Rental Index, giving Scarborough a reputation as an affordable place to reside.

      A BBC article from 2023 reported that rents in Scarborough increased by 7.6% in one year, showing high rental growth in the area. The biggest driver of rental inflation in the UK currently is the persistent supply-demand imbalance in the private rental sector. There aren’t enough available properties to meet demand, and this doesn’t look set to change anytime soon, suggesting that rental costs will continue to rise.

      As a historical resort, there are also chances for investing in short-letting and holiday lets in Scarborough.

      CU Scarborough, part of the Coventry University Group, is situated in the town, so there is a chance for Scarborough property investors to target student renters as potential tenants.

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      Investment Properties for Sale in Scarborough

      Scarborough is home to a wide range of property types. There are sea-view apartments, guest houses, bungalows and townhouses. Traditionally, the housing in Scarborough was terraced houses built during the Victorian and Edwardian periods. Four or five-story terraces are common as they were used to accommodate holiday visitors. Of course, plenty of semi-detached and detached houses across the town also exist.

      So, what is the most popular type of property among buyers in Scarborough? According to Rightmove, most sales in Scarborough during the last year were semi-detached properties, and they sold for an average price of £206,645. Next, terraced properties fetched an average of £158,188, while flats went for £140,279.

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        Buy-to-Let Investment in Scarborough: Area Breakdown

        Scarborough is covered by three postcode areas. YO11 consists of central and south Scarborough, Cayton, and Eastfield. YO12 covers north and west Scarborough and Seamer. YO13 covers Scalby, Burniston, and Cloughton.

        YO11 – Scarborough (centre and south), Cayton, Eastfield

        Average Property Prices in YO11

        The average property price in this area is £174,785.

        Average Rental Yield in YO11

        The average rental yield in this area is 4.21%.

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          YO12 - Scarborough (north and west), Seamer

          Average Property Prices in YO12

          The average property price in this area is £202,013.

          Average Rental Yield in YO12

          The average rental yield in this area is 3.94%.

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          YO13 - Scalby, Burniston, Cloughton

          Average Property Prices in YO13

          The average property price in this area is £325,176.

          Average Rental Yield in YO13

          The average rental yield in this area is 3.37%.

          (Average property prices taken were from Rightmove in March 2024; rental yield estimates were calculated with figures from in the same period)

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            What is the Best Area of Scarborough to Invest in?

            So, where are the best places for buy-to-let in Scarborough? The most affordable part of Scarborough is YO11; Eastfield is a reasonably priced suburb. Due to the low property prices, this district has the highest rental yield of all postcode areas. However, parts of Eastfield have been identified as deprived in the past, meaning it’s worth researching before buying a property there.

            Villages to the north of Scarborough, such as Scalby, are sought-after residential locations but a bit pricier than other areas, reflected in the disappointing rental yield.

            The best area for short-letting potential is central Scarborough, especially when it comes to property close to the coast.

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            Why You Should Consider a Buy-to-Let Investment in Scarborough

            Strong Tourism Sector

            Scarborough is a historic seaside resort town, making it an attractive spot for short-lets.

            Another advantage of Scarborough is its proximity to areas of natural beauty. The town is home to some of the country’s most charming parks and gardens, as well as the famous beaches and coastline. In fact, North Bay Beach received the coveted international Blue Flag and Seaside Award last summer.

            However, the town is not that well-placed for travelling or commuting. Even more prominent towns and cities in the Yorkshire region are inconvenient to get to, with trains to Hull taking 1 hr 25 mins, 74 mins for Leeds, and 48 minutes to York. Those who drive can make it to York in 70 minutes and Hull in 80 minutes. Therefore, Scarborough is not attractive for long lets unless the renter works nearby.

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            Scarborough New-Builds

            As mentioned, there is currently an undersupply of available rental properties in the UK, leading to a demand for more newly built properties to help fill the gap. Plans for new build properties are being put forward by North Yorkshire Council and private developers, but due to the historic nature of Scarborough, plans for new builds that don’t match the usual period properties found there often draw objections from the local community.

            While there are some new build housing projects in the area, generally, options for new build investment in Scarborough are quite limited compared to other areas. More diverse new build opportunities, such as student accommodation and luxury apartments, can be found elsewhere.

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              Off plan

              Off-Plan Property in Scarborough

              While new builds are popular investment choices due to the cheaper running costs and high demand from tenants, these properties are generally more expensive than older buildings. In order to combat this high initial expense, many investors are turning to off-plan investments. This is because by investing earlier on in the project while the development is still in the planning or construction stage, the investor can benefit from a discounted price and payment plans.

              However, chances for new build investment are limited in Scarborough, so off-plan investment opportunities will also be few and far between. Currently, developments with options for off-plan investment are usually found in major urban centres due to the high demand from renters and good capital appreciation forecasts.

              For this reason, it’s worth expanding the search to off-plan property in Bradford, Leeds, and other Yorkshire cities.

              Investors looking beyond Yorkshire will also find more affordable off-plan opportunities in North West cities like Liverpool and Manchester.

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              How Does Scarborough Compare to Other UK Regions When It Comes to Buy-to-Let?

              So, is buy-to-let a good investment in Scarborough? Scarborough has affordable property and potential as a holiday letting destination. However, it may not be popular enough among renters to yield fast returns.

              Other areas are more in demand from long-term renters, especially in major cities with better employment opportunities, transport links, and large student populations. For example, Liverpool has been named as one of the UK cities with the highest rental yield by Zoopla. The property portal states that the average price of a buy-to-let property in the Merseyside city is £128,905, making for a rental yield of 7.43%.

              Major cities like Liverpool and Manchester also win out regarding diverse investment opportunities. These urban centres are home to period houses, sleek new builds, off-plan luxury apartments, purpose-built student accommodation, and affordable properties in prime locations perfect for short-lettings. Why not learn more about what exactly is a real estate investor with our free guide.

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                Want to Invest in Scarborough?

                Scarborough is one of the UK’s classic seaside resort towns, and there are several advantages to be found there for property investors. In particular, those interested in holiday lets may be attracted to the area.

                However, Scarborough is not as popular with renters as other major cities, such as Liverpool and Manchester, where there are better employment opportunities and more convenient travel links. This popularity has led to high rental yields and promising prospects for capital appreciation.

                Take a look at some of our buy-to-let area guides to learn more about the UK property market:

                Map of Scarborough

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                Jessica Ferris

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                Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.