Hull Property Investment: Six Reasons to Invest

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So, you’re interested in investing in Hull property and want to find out more?

You’ve come to the right place.

Known as the dark horse of property investment, Hull is a promising location in 2022 for a good reason.

Kingston upon Hull (or Hull as it’s more commonly known) is an East Yorkshire port city that has undergone an unprecedented wave of investment over the past five years.

After being crowned the UK’s second City of Culture, Hull has seen a wave of buy-to-let property investments as more money has made its way into the city, either for residential or commercial property.

But why choose Hull?

In this guide, we’ll take you through whether property investment in Hull is something you should seriously consider or whether there are better places to invest your money.

Let’s take a look then, shall we?

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Hull Investment Property Overview

£1.5 Billion 

Over £1.5 billion worth of investment has been poured into Hull over the past eight years after it was named the 2017 UK Capital of Culture.

 

£131,036 

The average house price in Hull is £131,036.

 

5.27% 

A property investor will see an average rental yield of 5.27%.

 

£575.11 PCM 

Investors will see an average monthly rent of £575.11 PCM.

£1.5 Billion

Over £1.5 billion worth of investment has been poured into Hull over the past eight years after it was named the 2017 UK Capital of Culture.

 

£131,036 

The average house price in Hull is £131,036.

 

5.27% 

A property investor will see an average rental yield of 5.27%.

 

£575.11 PCM

Investors will see an average monthly rent of £575.11 PCM.

Is Hull a Good Place to Invest in Property?

What makes Hull a good place for buy-to-let property investment?

Many things make Hull a property investment hotspot in 2022, especially following the tidal wave of investment the port city has experienced since 2013.

To help you make your decision, we’ve listed six essential reasons why Hull is a great place to invest in 2022.

Let’s start with the numbers:

1. Impressive Rental Yields

Property prices in Hull average at £131,036, which makes their high average rental yield of 5.27% all the more impressive.

The UK’s average rental yield is 3.63%, nearly 2% less than in Hull.

Not only are they above the UK average, but Hull’s yields beat its Yorkshire neighbours.

Properties in Hull are £80K less than those in Sheffield and £95K less than in Leeds, with the East Yorkshire port city providing better rental yields than them both (4.94% for Leeds and 4.55% for Sheffield).

2. Strong Tenant Demand

Not only are properties in Hull affordable, but there is an exceptionally high tenant demand.

Hull is a student city, with The University of Hull enrolling over 16,000 students each year, all looking for accommodation.

As the university continues to grow, more investment makes its way into the city to match its increasing talent pool, providing locals with jobs from large businesses and entrepreneurs.

Previously run-down areas of the city are now nearly unrecognisable thanks to the sea of investment students have brought.

While student accommodation can have a higher tenant turnover with some void periods, there’s no denying that there can be an extremely high demand for your property if you invest in the right part of the city.

From students, staff, and post-grads, thousands of people are looking for accommodation while at the university, making Hull an excellent place for property investment.

But, aside from students, why is tenant demand strong?

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3. £1.5 Billion of Investment

After being crowned the 2017 UK City of Culture, Hull has received a mammoth £1.5 billion investment spread over eight years.

Hull’s City Plan aims to evolve the city from its historical past into a modern northern powerhouse through a series of regeneration projects.

£27 million has been invested in Hull’s fishing ports, transforming them into a world-class waterfront destination for businesses and tourists.

One key aspect of the waterfront’s development is the £83.6 million regeneration of the Fruit Market – a cultural hotspot for independent restaurants, shops, art galleries, and businesses.

As the Fruit Market’s reputation has grown following a rise in private investment, property investors looking to invest in a promising area haven’t been too far behind.

Additionally, the £96 million development of Albion Square has brought a wealth of green space alongside commerce and residential buildings.

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4. Employment

While it’s known for being a busy port city, don’t let that make you think it’s a region stuck in the past.

The sea of investment from Hull’s 10-year City Plan brought over 20,000 jobs into the city, transforming Hull into a modern city centre.

From kickstarted independent businesses to established companies, the brand new £7 million K2 office building provides businesses with state-of-the-art facilities for commerce in an up-and-coming city.

But it isn’t just start-up tech businesses filled with young professionals benefitting from Hull’s newfound investment.

Independent bars, shops and contemporary cafes have opened their doors on the regenerated high street, employing hundreds of people from all walks of life.

Despite the new trendy start-ups and coffee shops, Hull hasn’t forgotten its roots.

Hull Port remains the UK’s leading softwood timber port, handling approximately 10 million tonnes of cargo each year, amounting to £12 billion in trade annually.

Elsewhere, Cranswick, Fenner, and Croda remain some of the major employers in the area, providing thousands of jobs in various sectors across the city.

Hull’s economic future looks bright, especially with Hull’s Economic Strategy 2021-2026 aiming to build on its booming economic growth, skyrocketing the Yorkshire city into a new era of development.

5. Leader in Renewable Energy

A key aspect of Hull’s regeneration is its unrivalled focus on renewable energy.

Known as a world leader in renewable energy, Yorkshire and Humber’s fourth-largest city is paving the way as a prime example of an environmental and sustainable city.

In 2021, Hull was awarded the Environment Green Certificate for the seventh year in a row, highlighting its use of electric cars and green driver training across the city.

Hull aims to be carbon neutral by 2030, and they have already reduced its carbon emissions by 7% in 40 locations.

Much like property investors, Hull has a clear-cut vision for the future, making it a great location to invest in for 2022.

6. Well Connected City

Hull is cementing its future growth through excellent transport links, making it ideal for professionals commuting to work.

Being one of the best-connected cities in the North of England, Hull offers reliable road, rail, air and port transport links.

Manchester and Leeds are reached by the M62 motorway or frequent rail services.

London can be reached within 2 hours and 40 minutes from the Hull Paragon Interchange.

Alternatively, if your tenants don’t fancy a weekend away in a neighbouring city, they can travel as far as Bulgaria and Lapland from nearby Humberside Airport.

A £355 million investment to improve Castle Street (one of Hull’s busiest roads) is underway to help ease traffic on the A63.

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Will Hull Property Values Increase?

The wealth of investment in Hull has not only helped bring in more businesses and local amenities into the city, but it has also increased property value.

In March 2012, the average house price was £84,395. Ten years later, property prices in Hull average at £131,036 – a £46,641 (55.2%) increase!

The latest report from Savills indicates that this growth won’t be stopping any time soon.

It has been predicted that by 2026, properties in Yorkshire and the Humber will have increased by 18.4% – the joint highest alongside the North West.

Compared to the UK’s average increase of 12.9% over the same period, Hull is on track to maintain its reputation as a property investment hotspot.

Hull Property Value By Year

Best Areas to Invest in Hull

Now that you know about the tidal wave of investment Hull has experienced within the past decade, it’s time to look at the best areas for Hull property investment.

From the buzzing city-centre living in South Hull to the quieter lifestyle of North Hull, there’s a lot on offer in Kingston upon Hull.

Hull’s local property market is filled with opportunities, especially for any rental property, but choosing the right location is vital.

The wrong choice could lead to elongated void periods, low yields or expensive property management, even in the most desirable locations.

That’s why we’ve broken down the five postcodes with the best rental yields based on the current market value.

Keep reading to find out more.

1. HU2

Average House Price: £92,985

Average Rental Yields: 7.57%

At the very top of our list is the HU2 postcode, an area containing the district of Wincolmlee.

Wincolmlee made a name for itself in 2018 after a Banksy mural appeared on Scott Street bridge, but there’s much more to this area than its fifteen minutes of fame.

The district has a rich industrial heritage that can still be seen today.

While currently not a very densely populated area, the Grade II listed High Flags Mill is being converted into modern one and two-bedroom apartments.

Although its streets are filled with mechanics and hardware stores, several traditional pubs are still dotted around, proving great locations for tenants to unwind after a long day at work.

Potential property owners will be paying the lowest property fees on this list while seeing high returns of 7.57% with a monthly income of £586.43.

2. HU1

Average House Price: £104,381

Average Rental Yields: 7.44%

Typically, city-centre locations don’t appear this high up on these lists, but Kingston upon Hull isn’t like other cities.

Covering Hull City Centre, Old Town and Albert Dock, the HU1 postcode delivers the second-highest rental returns in Hull at a staggering 7.44%.

Tenants will be surrounded by work opportunities and the buzz of the city centre.

With Hull Paragon station on their doorstep, they will be able to reach other neighbouring cities in an hour or two.

If tenants are looking for a burst of culture, the famous Hull New Theatre can be found in HU1, with several West End and local productions making their way onto the stage all year long.

Investors will see a monthly income of £647.43 after paying £104,381 for a property.

HU1 could be a perfect fit for Hull property investors in 2022, especially with young professionals working in the city wanting to live centrally.

3. HU9

Average House Price: £113,014

Average Rental Yields: 5.91%

Sitting east of the city centre is the HU9 postcode area, the region with the third-best rental returns in Hull.

Mainly built up of council housing, the HU9 postcode contains the districts of Drypool, Victoria Dock, Marfleet, Preston Road, Greatfield and Bilton Grange.

Community spirit runs high in this east Hull postcode, from the caring and ‘outstanding’ GP practices to community-focused sports events.

Rugby league fans are in luck as Craven Park, home to Hull Kingston Rovers, is right on the doorstep – the perfect place to enjoy a pie and a game of rugby on a Friday night.

Tenants can reach the city centre in 12 minutes via bus, making it an ideal and affordable location to commute into the city centre.

Properties in HU9 have an average purchase price of £113,014 with a monthly income of £556.28, meaning that investors will see returns of 5.91%.

4. HU3

Average House Price: £105,489

Average Rental Yields: 5.52%

Fourth on the list is the western HU3 postcode, producing yields of 5.52% from an average monthly income of £484.87.

At the centre of HU3 are the diverse streets of Spring Bank, where migrant communities have brought a new lease of life into the area after opening up new businesses and allowing the district to flourish.

Hull’s community spirit is felt the strongest in the iconic MKM Stadium, home of Hull City Football Club, located right in the heart of the southwest Hull postcode.

Lying just outside the city centre, HU3 offers fantastic transport links, especially with Hull Paragon Station only a three-minute drive away.

Tenants will also benefit from the Hull Royal Infirmary being a five-minute drive away

If you’re looking to furnish your new investment property, there’s no better place to look than the riverside Saint Andrew’s Quay Retail Park, packed with a Currys, Benson for Beds and Oak Furnitureland.

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5. HU6

Average House Price: £130,054

Average Rental Yields: 5.48%

The last addition on our list is HU6, a student-centred location in North Hull.

Ideal for investments in student accommodation, HU6 has a dense student population thanks to its affordable property and close location to the University of Hull main campus.

However, it’s not just students living in this northern postcode.

Many families and seniors live in the Orchard Park Estate, with many younger tenants moving into new build properties within the area.

Unfortunately, the estate has recently garnered a negative reputation for antisocial behaviour that has overshadowed its ‘great community spirit’.

Dunswell village is another popular area for families within the HU6 postcode, offering regular transport links taking tenants into the city centre within 30 minutes.

With an expected income of £594.50 from an average price of £130,054, investors can expect an average yield of 5.48% when investing in HU6.

Why Should Property Investors Use RWinvest?

When it comes to Hull, property investors are spoilt for choice.

It’s a UK city evolving with the times, and its property values are only growing alongside it.

RWinvest is one of the UK’s leading property investment companies, connecting buy-to-let investors with some of the best property investment opportunities on the market.

For more property development news, there is no better place than RWinvest.

Alternatively, you can find the best places to invest in UK property in 2022 in our in-depth guide.

 

Disclaimer:

This guide was last updated in June 2022.

By the time you read it, some of the data provided may no longer be accurate.

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