Yarmouth & the Eastern Coast Regeneration

[LaurenCR]

Looking for any advice/opinions about investing in Great Yarmouth and the coastal areas around it such as Gorleston- has anyone done this, and if so, what areas would you recommend, and how are you finding the rental market atm? This will be my 2nd BTL, my first is a one bed flat in Liverpool purchased through Property Hub.

I'm a Norwich based investor, have looked into purchasing a BTL in Norwich and the returns just aren't as good as some coastal areas such as Yarmouth. As GY is known as a deprived area, I am of course concerned about the capital growth there, but there seems to be a lot of investment and regeneration happening in GY at the moment. This makes me wonder, is GY an up and coming town? Is it realistic to think these investments will result in a booming seaside town within the next 5-10 years, or would I be better off investing in the less deprived areas surrounding it such as Gorleston/ Bradwell etc?

The regeneration projects currently planned for GY;

• A £120m bridge - the third river crossing - will link the town's marine and offshore industries with the A47 when it opens in 2023
• The borough council's replacement £26m Golden Mile "anchor attraction", the Marina Centre leisure complex, is due to open next summer
• A £20.1m Town Funds grant will help create jobs and plans to turn the empty Palmers department store into a learning hub and university campus alongside the relocated Central Library
• Work should be completed in summer 2022 on an £18m operations and maintenance campus for the offshore renewables sector
• A £13.7m Future High Streets Fund will pay for the library move as well as a new heritage centre, more leisure venues and turn empty historic buildings into homes in the town centre
• The historic glass Winter Gardens has won a £10m lottery grant - part of a £16m restoration - and is due to reopen in 2026 as a heritage, arts and education venue
• The Market Place is undergoing a £4.6m revamp to help attract more shoppers
• A four-year £1.9m scheme to save the town centre's historic and at-risk buildings is also under way
• A new 'fire festival' this autumn has just been revealed in a bid to make the resort a year-round destination
• A London Eye-style wheel (pictured) is on a free summer loan, offering views for up to 10 miles
• Plans are under way to secure major festival slots next year for a film, titled Provisional Figures, shot in Great Yarmouth featuring Nuno Lopes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[paultc]

Hi Lauren, I have been keeping an eye on GY since the start of last year.  I have two buy-to-lets in Lowestoft so not too dissimilar to GY.  
Last year, in GY the price of the classic 2/3 bed Victorian terrace has steadily increased.  Last year you were looking at 90-115k but now you are looking at 115-140k.  The rental value is largely unchanged (around the £525-595 pcm).   
The regeneration projects you mention are all good for the town but is there a risk of some of these being revoked/delayed as a result of covid and the recovery in public finances?  These projects may lead to employment opportunities which may increase rental demand further down the line.  
In general though, I am finding the yields in GY, Lowestoft, Gorleston all being squeezed right now.  If you compare to Liverpool where you can still purchase at cheaper levels but can achieve similar rental values then GY is hard to justify.   As for capital growth,  I feel the price increases are a little disproportionate right now and wonder if there is a correction to come.  However, if the commitment is still there for all the regeneration projects then perhaps as a long term option it could be a good option.  Have you considered serviced/holiday let options.  More hassle but better returns if you are able to secure a property close to sea front area.  

 

[LaurenCR]

Hi Paul,

Thankyou for your insight. Yes, some of the projects may be delayed, which would be a shame.

Re your properties in Lowestoft, have you found them to be good investments? I know the returns are being squeezed right now, but were they particularly good pre-pandemic?

[LaurenCR]

Hi Paul,

Thankyou for your insight. Yes, some of the projects may be delayed, which would be a shame.

Re your properties in Lowestoft, have you found them to be good investments? I know the returns are being squeezed right now, but were they particularly good pre-pandemic? What areas would you recommend in Lowestoft?