Landlords enjoy a mixed return

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A PROPERTY survey has shown mixed results for the Fylde coast’s rental market.

According to property website Globrix.com, rental yields in the Fylde coast are lower in St Annes and Lytham than they are in Blackpool.

Rental yields is the money returned to the buyer once they rent out their residence and Blackpool came third in the poll with a yield of 5.14 per cent.

However, Lytham and St Annes had the lowest of all the seaside towns surveyed with 3.18 per cent, while the south coast dominated the top of the list with Plymouth and Portsmouth.

Justin Allitts, managing director of Allitt’s Estate Agents, said: “The situation with Blackpool having more affordable and quality property now has seen investors coming back to the market.

“Property prices are generally higher but Blackpool is excellent.

“The banks have eased lending and people now see Blackpool as a good place to invest.”

With a rent yield of 5.14 per cent, Blackpool is the most profitable seaside town in the north.

The asking price for an average property in the resort currently stands at £105,387 and a rental asking price of £451.

However, Lytham and St Annes have an average property price of £203,630, almost £100,000 more than in Blackpool, but a rental asking price of £540, making the yield significantly lower.

Mr Allitt also put the high yield in Blackpool down to the number of repossessions in the resort.

He added: “There are a lot of repossessions coming on to the market and leading to cheaper, affordable properties.

“And with banks making lending easier, people can purchase at a low price.

“People from all over the country are calling us because property prices are relatively cheap compared to the rest of the area, which is producing a high yield.”

Jennifer Warner from Globrix.com added: “Our results reveal buyers are more likely to get a good return on their investment if they buy in the larger seaside towns on the south coast and in south Wales, where regeneration money has poured in over the past decade or so.

“With the exception of Blackpool, towns in the north are notable by their absence from our list and there’s a complete lack of towns from the North East.

”That said, property prices are low by historical standards in seaside resorts across the country, so despite the stereotypical image of peeling paint and kiss-me-quick hats, now could be an ideal time to invest in a second home both to enjoy with your family and rent out when it suits.”