A new study which looked at coastal towns across England and Wales has found that Hull offers landlords the highest average rental yield.
The research, conducted by investment firm LendInvest, revealed that landlords who acquire homes within the Hull postcode area can enjoy rental yields of up to 10.7% in resorts like Withernsea.
The next best postal area for landlords is Blackpool. Landlords who invest in property in the town itself can enjoy rental yields of 8.2%, while tenants can make the most of being just a matter of minutes from the Pleasure Beach and donkey rides.
Llandudno in North Wales came third with buyers in Colwyn Bay typically achieving rental returns of around 6.1%.
Christian Faes, co-founder and CEO of LendInvest, said: “When you think about investing in property in a seaside town, many will immediately think of places like Brighton and Eastbourne. But as our research makes clear, investing in the right Northern seaside towns, for example, could prove a lot more lucrative.
“Seaside towns often enjoy strong demand from renters, whether that’s for year-long tenancies or for a couple of weeks over the holiday months.
“However, it’s crucial that would-be property investors do their research on the area to gauge just how much demand there is, and what sort of competition they face. It’s not enough to rely on the allure of ice cream and sea air!”
Here are the best seaside postcode areas for landlords, and their top-earning towns:
Postcode area | Top earning seaside town/village | Average rental yield |
Hull | Withernsea | 10.7% |
Blackpool | Blackpool | 8.2% |
Llandudno | Colwyn Bay | 6.1% |
Cardiff | Barry | 6% |
Norwich | Caister-on-Sea | 5.7% |
Carlisle | Egremont | 5.7% |
Lancaster | Morecambe | 5.5% |
York | Scarborough | 5.5% |
Canterbury | Ramsgate | 5.2% |
Brighton | Portslade | 5.2% |
Portsmouth | Ryde (Isle of Wight) | 5.1% |
Colchester | Clacton-on-Sea | 5% |
Bournemouth | Bournemouth | 5% |
Peterborough | Chapel St Leonards | 5% |
Plymouth | Plymouth | 4.9% |
Preston | Southport | 4.9% |
Lincoln | Mablethorpe / Sutton on Sea | 4.7% |
Torquay | Torquay | 4.6% |
Truro | Hayle | 4.6% |
Bristol | Weston-super-Mare | 4.6% |
Southend-on-Sea | Southend-on-Sea | 4.4% |
Renters’ Rights Bill: Government is ignoring impact on students -warning