Blackpool is the fourth fastest growing hotspot for buy to let investors, according to a new survey.
The research, by HSBC, suggest Blackpool is one of several northern towns and cities to benefit from potential landlords looking for alternatives to the expensive London market.
According to resort estate agent Justin Allitt, investors are increasingly looking to spend money away from the capital.
He said: “Basically, you look at the property yield in London and it’s around six per cent.
“At the last auction I went to in Blackpool, the room was packed with out of town buyers, and we had one lady from Hong Kong who bought for big money. It’s a great return on your investment up here.”
The research found the average potential gross rental yield on a property in Blackpool was around 7.63 per cent. Only Southampton, Manchester and Nottingham offered a better chance of a good return.
Mr Allitt believes the number of landlords from out of town investing in the resort will continue to grow as the message about its potential spreads via the internet.
He said: “We’ve seen it in our auctions for the last six months, it really is amazing.
“There’s still plenty of property to buy at the lower end here and we’re looking out for not just people from London, but outside the UK, too. It’s a real good news story for Blackpool.
“You tend to hear bad news about landlords but we’ve got some areas that need bringing up to scratch and this will help.”
Peter Dockar, head of mortgages at HSBC, said: “Landlords are reaping the benefit as young professionals say goodbye to capital living in favour of more affordable commuter towns.
“Despite the inevitable increase in commuter costs associated with moving further out, many still feel the move is worthwhile in order to save towards property deposits.
“House prices in these locations, while still out of reach among many first-time buyers, are relatively affordable for landlords investing in property and the demand from young professionals has pushed up rents and driven up returns.”
** Hundreds of homes for sale and to let in the Property pull-out in tonight’s Gazette