Property investors need to set their sights on Kingston upon Hull. This spot hidden in the north of England is said to be the property market’s next hot spot, Iguana Developments has claimed. Iguana Developments specialises in the refurbishment of offices into residential properties, a trend growing as a result of COVID-19. They have compared yields on their apartments and penthouses in Hull to similar ones in Leeds and Manchester – finding that Hull comes out 2.5% in the lead!
Hull is a haven for property investors with low initial buy-in-value and rising demand. The city itself is undergoing significant regeneration and is regularly described as an up-and-coming area. Iguana Developments is one of the companies regenerating Hull’s city centre and the Old Town, drawing in city residents from all demographics. It’s becoming an ideal location for property investors to purchase, develop and sell or rent property to meet demand.
For example, Iguana Developments has so far delivered 164 apartments and penthouses across three developments, taking the city to a new level and meeting growing demand. Jason Coleman, managing director of the firm, has said, “Hull is a fantastic place for property investors. I myself have been in this sector since the early 90s, and following the success of my business, these larger projects have been the natural progression. We have a thriving community of young professionals, as Hull is a place where many people come to, either for university or job relocation, and never leave.”
Such words of wisdom from an expert who has been investing in this area for decades is sound advice for any property investor looking to expand their horizons and develop their portfolio. Jason Coleman went on to highlight how the 2019 figures from Hull University show that 62% of graduates remain in the area. As a result, property investors can expect a turn-key opportunity with tenants and buyers from day one.
Hull is one of the most economically deprived cities in the UK and has suffered from post-industrial neglect like other cities in the north. However, increasing investment in the city has seen its reputation majorly change. The city was awarded the City of Culture award in 2017 (active until the end of 2020), reshaping perceptions and highlighting how developed and welcoming this ‘new Hull’ can be. In 2019, the property market grew by 8%, with regeneration projects, development and funding helping the city become more enticing for university students, homeowners and working professionals.
With COVID-19 showcasing to many businesses the potential of working from home, there is likely to be a continued scaling down of office spaces and high street stores in the future. Therefore, we can expect a further need for retail/office to residential conversions in the coming years, taking advantage of these empty spaces and the demand for housing.
Hull is becoming a ‘world-class hub’ for businesses of all types, with some of the city’s fastest-growing businesses in the digital, creative and research and development (R&D) spheres. The four-year reign as the City of Culture has also helped the city see unprecedented growth in leisure, tourism and retail.
While many of us will still view Hull with the same outdated views of a run-down city, it is clear that Hull is a hot spot for property market activity. Property investors need to keep a close eye on this city and recognise its potential for developing their portfolios and growing their business.