12th April 2016
When it comes to property investment, the two main factors are location and price. We have price covered with our collective bargaining power, extensive contacts and sourcing network. We also have location covered in that we are constantly evaluating, analysing and assessing where the next property hotspot is going to be.
With the London and the South East market experiencing less growth than other regions in the UK, it is even more important to be aware of which areas are going to give you the best returns both in rental yields and in capital growth.
Cities are the places where the most people live; they do so because of jobs and infrastructure, so it stands to reason that it is generally cities where property is in the highest demand. Cities tend to either degenerate or regenerate; making the best time to buy during the regeneration phase, before prices have started to fully reflect the newly emergent desirability.
Take Stratford as an example from when London won the Olympic bid or Manchester when the Peel group announced the plans for Media City – the big winners were those who invested before the regeneration had been fully completed. They benefited from investing in the Cities where capital growth was at its highest in 2013.
What these cities have taught us is that timing really is key as far as location is concerned and that those that invest prior to the regeneration fully taking form stand to benefit the most. So we have to answer the question of where next? What is the next Stratford, the next Manchester, the next safe bet? In our opinion it has to be Hull.
Taking into consideration all of the above our favourite city from an investment point of view is Hull, ever since winning the bid for UK City of Culture, which is due to take place in 2017, Hull has been a City in the process of transformation and regeneration that is unparalleled anywhere else in the UK.
We started investing into and recommending Hull over two years ago, since then, not only have we bought property ourselves, we have been busy making contacts so we can bring you the best the city has to offer while it’s still undervalued.
Rents in Hull are already rising as demand increases. The job market is expanding, the city is blooming, yet for the moment at least, prices are still low and yields are enticingly high. The best news is that you don’t have to get on the train and see it for yourself; you can if you want to but we have done all the leg work already.
What’s more, the property we source is not just under market value, it comes with our hands off Central asset management package that leaves you to enjoy the fruits of your investment while we deal with the worry and problems of the practical day to day issues for you.
Why Invest in Hull?
City of Culture 2017
After beating the likes of Dundee, Leicester and Swansea Bay to securing City of Culture back in 2013, Hull has been under a £1billion regeneration plan to get ready for a year of events to show off the City. After Liverpool was City of Culture in 2008 and the regeneration this title bought to the city, 85% of residents agreed that the city was a better place to live. We fully expect the same result will be seen in Hull.
Siemens £160 million investment in wind turbine production and installation facilities in Yorkshire will be based at Alexandra Dock. The investment will provide a huge boost to the UK’s offshore wind industry and the Humber region. The combined investment from Siemens and ABP of £310 million will create up to 1,000 jobs directly.
- The Humber is the UK’s busiest port complex.
- The Humber handles 85 million tonnes of cargo – 17.5% of Britain’s maritime trade and more than any other ports complex in the UK. Those cargo volumes make the Humber the fourth busiest ports complex in Europe after Rotterdam, Antwerp, Hamburg and Marseille.
- The Humber Ports generate employment for 47,000 people.
- Humber-based logistics companies ship directly to more than 50 countries with well over 100 shipping lines operating regularly.
- HumberPort generates more than 250 rail movements per week, that is over 25% of the UK’s rail freight traffic.
Other Factors that make Hull an Investment Hotspot;
- Proximity and strong connectivity to mainland Europe means 320 million consumers can be reached across mainland Europe within 24 hours.
- Ideal location within 200 miles from London and Edinburgh enables businesses to reduce transportation costs, dead heading, delivery times and carbon emissions.
- Well connected and less congested road and rail network further reduces transport costs, delivery times and carbon emissions.
- The largest amount of development land in the UK with close proximity to the ports. Morrisons, TNT and Crown Paints are just a few of the companies who have chosen the Humber for their manufacturing and logistics hubs.
- Lower operational costs for manufacturing and distribution facilities around the Humber in comparison with southern UK ports.
- Access to the skills and expertise of the University of Hull Logistics Institute, a world class facility for research, education and industry out reach.
Written by – Tom Stedman
Senior Property Analyst