Home Finance & InvestmentPrivate investments Where are the current top seaside towns for property investment?

Where are the current top seaside towns for property investment?

by LLP Reporter
19th Jul 19 10:49 am

Coastal towns have often been favoured among property professionals as good hunting grounds for investments – but where are currently the most affordable?

The latest research from property investment portal www.oneandonlypro.com reveals new league table showing the top ten seaside towns for property investment in England.

Taking the top hotspot is Blackpool with 14% of properties found to have ‘Diamond’ investment status by One and Only Pro’s unique algorithm. Offering some of the most affordable property of all the seaside towns, the average Diamond property in Blackpool costs just £74,392.

In second place, with an average property price tag of £187,912 is Hastings, with 3.2% of Diamond properties, followed by Paignton, which came in third place with 2% and an average £109,806 Diamond property price.

Fourth and fifth place went to Weston-super-Mare (1.6%) and Southend-on-Sea (1.3%), both towns offering a sound investment, with an average Diamond property price of £197,985 and £199,441 respectively.

The analysis ranks the top seaside towns in England and Wales areas, based on the percentage of Diamond properties on the market in June 2019. Investment properties were given a score from one to ten, with properties rated ten, dubbed Diamond properties and the most likely to increase in value. Properties which score ten are a once in a lifetime investment, that will sell quickly. Properties with scores between seven and nine will out perform other similar properties.

Henri Sant Cassia, CEO, had this to said, “Blackpool comprehensively tops the list with an average property price of just £74,392, giving an average yield of 19% for their diamond properties. Many commentators and predications have recently identified the North of England as a top property investment hotspot, with good potential capital growth.

“Even in Whitby, which has no diamond properties, investors can still earn a yield of 6% if they can get to the top 10 investment properties, which the One and Only Pro platform helps investors to find.

“What is pleasing to see is that even in more expensive seaside towns such as Bournemouth and Brighton, investors can achieve yields of 11%, if they seek out the right property deal. The data shows that there are good property deals everywhere, you just need the ability to seek them out. The One and Only Pro data and platform dispels the myths that property yields in these towns don’t go over 4% and now is a bad time to be investing in property.

“Other commentators and data take yield averages over all properties in a town, whereas we take the average from only the top 10. The danger in analysing all properties in an area, is that it may skew average yields and create the wrong perception of an area, signalling that it may not be suitable as an investment.

“For example, if we take the coastal town of Poole, with its multi-million-pound Sandbank homes, you could be forgiven thinking that it is a no-go area for property investors. However, our research shows that even in Poole, investors can pick up a great investment property, such as a two-bedroomed flat for £87,000, or town house for around £270,000. Though there are much lower numbers of diamond properties in this area, they are still a few to be found.“

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