View more on these topics

Top seaside property hotspots revealed

Like to let beside the seaside? The latest research from LendInvest looks specifically at coastal towns to find which areas offer the top average rental yields to landlords.

Where are the top seaside postcodes for landlords?

The interactive map below looks at the highest rental yields along the UK coast. According to the data, Hull, UK City of Culture for 2017, is the top seaside postal area for landlords in England and Wales. Property investors who buy within the Hull postcode area can enjoy rental yields of up to 10.7 per cent in seaside resorts like Withernsea.

Hull is followed in the rankings by perhaps the best known seaside town in England, Blackpool. The Lancashire favourite allows landlords to invest for relatively low prices and rent for relatively high rental prices, which means landlords can get an average yield of 8.2 per cent in the town.

Other northern towns also feature high on the list of best locations for investment in seaside rental homes, with Lancashire’s Morecambe and Yorkshire’s Scarborough both giving landlords fantastic rental yields, these were in the top ten among locations in Wales, and only a limited number of southern towns and cities.

Top earning seaside towns

1. Withernsea
Property investors in Withernsea in Hull – the UK City of Culture 2017 – can enjoy rental yields of 10.7 per cent. Properties cost an average of just £70,000.

2. Blackpool
There’s more to Blackpool than the Pleasure Beach – landlords can achieve rental yields of 8.2 per cent, with average property prices of around £70,000.

3. Colwyn Bay
Colwyn Bay is the birthplace of former James Bond Timothy Dalton. Properties cost an average of £132,250, with rental yields of 6.1 per cent.

4. Barry
The average property in Barry, setting of sitcom Gavin & Stacy, is £115,000. It delivers rental yields of 6 per cent for investors.

5. Caister-on-Sea
Caister-on-Sea in Norfolk is a good bet for property investors, producing average rental yields of 5.7 per cent. The average property in the town costs £110,000.

6. Egremont
The average house price in Egremont, Carlisle, is £95,000. Property investors here can pocket rental yields of 5.7 per cent.

7. Morecambe
Landlords in Morecambe can achieve rental yields of 5.5 per cent, with the average property costing £119,000.

8. Scarborough
Scarborough is the largest holiday resort on the Yorkshire coast, making it a great option for holiday lets. The average property costs £176,500, with rental yields coming to 5.5 per cent.

9. Ramsgate
Rental yields in Ramsgate stand at 5.2%, with the average property price of £180,000.

10. Portslade
The average property price in Portslade is higher than many towns on the list at £278,000. Nonetheless, it presents an attractive opportunity to landlords, delivering a rental yield of 5.2 per cent.

11. Ryde (Isle of Wight)
Ryde, on the Isle of Wight, boasts the oldest pier in the UK. Investors can secure rental yields of 5.1 per cent, with the average property costing £153,000.

12. Clacton on Sea
The typical rental yield in Clacton-on-Sea stands at a healthy 5 per cent, with the average property costing £154,995.

13. Bournemouth
Bournemouth attracts more than six million visitors a year, according to the National Coastal Tourism Academy, making it a terrific option for holiday lettings. The average rental yield stands at 5 per cent, with property typically costing around £167,500.

14. Chapel St Leonards
The average property in Chapel St. Leonards costs £130,000 and delivers a typical rental yield of 5 per cent.

15. Plymouth
Investors in Plymouth can enjoy a rental yield of 4.9 per cent, with the average property costing £146,000.

16. Southport
Southport in Merseyside is known as the golfing capital of England, with the highest concentration of championship links courses. Investors here can secure a return of 4.9 per cent, with the average property costing £141,000.

17. Mablethorpe/Sutton on Sea
The average property in Mablethorpe/Sutton on Sea will set investors back £124,950. However, in return they can enjoy a return of 4.7 per cent.

18. Torquay
The typical rental yield in Torquay stands at a respectable 4.6 per cent. Investors will need to pay an average of £153,000 to secure a property in the town.

19. Hayle
Landlords who buy property in Hayle will need to spend an average of £195,000. The typical rental yield stands at 4.6 per cent.

20. Weston-super-Mare
Birthplace of comedy legend John Cleese, Weston-super-Mare is currently undergoing a regeneration project which may make it even more attractive to property investors. Currently the average property price stands at £150,000, with rental yields of 4.6 per cent.

21. Southend on Sea
The average property in Southend-on-Sea will cost investors £230,000. In return, it delivers typical rental yields of 4.4 per cent.


Virgin Money’s pre-tax profit up 53%

  Virgin Money’s pre-tax profit rose 53 per cent to £101.8m in the first half from £66.4m in H1 2015. The firm’s net lending was £2.2bn, up 29 per cent. Virgin Money says it now controls 3.6 per cent of the gross mortgage lending market. The lender is planning to pay an interim dividend of […]


Santander starts instructing valuation on day application is received

Santander has moved to knock days off the application process by instructing the valuation on the day it receives a case where the product comes with a free valuation. Previously, a valuer would be instructed once a case has gone through the underwriting process. Santander head of business development for mortgages Graham Sellar says: “We […]


FOS sees 10% drop in Q1 mortgage complaints

The Financial Ombudsman Service had 3,729 enquiries about residential mortgages in the first quarter of 2016, down ten per cent from 4,136 in the same period of 2015. The FOS upheld 44 per cent of its mortgage caseload in the 2016 first quarter and 32 per cent in the same period of 2015. Unconventionally, the […]

Tackling the housing crisis will take more than money

The latest housebuilding figures from the Department for Communities & Local Government confirm the worst fears of many within the property industry. We are failing to address the housing shortage in any meaningful way. Let’s look at the number of housing ‘starts’, new housing projects where work has begun. In England, work has been started […]

Bridging is no longer a dirty word

It’s not that long ago that short-term finance, or, perhaps more specifically, bridging finance were viewed as dirty words by mortgage brokers. The rates on offer were punishing, meaning there were only a handful of situations where it would be appropriate to arrange one. Some lenders didn’t exactly uphold great reputations for service standards either; […]


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now