For substantial investment returns, property seekers should consider Scottish seaside regions, as suggested by findings from Pikl Insurance.
In Portree, which is part of the Isle of Skye, the average property price is £206,200, with the potential to earn £52,400 per year. This means investors could earn back their investment in under four years. The location is attractive to tourists due to its impressive landscapes, quaint harbour, and its closeness to the Trotternish Ridge.
Similarly, in Tobermory, it is possible to buy property for £178,000 and receive £35,700 a year in rent. This town is on the Isle of Mull and is celebrated for its colourful buildings and calming environment. It’s a paradise for individuals who love the outdoors, offering a variety of activities like hiking, biking, sailing, and kayaking.
Rothesay on the Isle of Bute also offers great value, with an average home price of £109,800 and a possible annual income of £21,900. This island is steeped in history and features lush landscapes with hills, beaches, and cliffs.
Cliff Ward from Pikl, an expert in holiday lets, mentioned: “Since the pandemic, domestic vacations have become more popular. This trend has led many to purchase second homes for personal enjoyment and to lease them to vacationers for additional income during the year.
“Seaside towns often come with the advantages of picturesque views, agreeable weather, and plenty of local facilities, which also makes them appealing as permanent residences.
“While investors should always weigh their financial capabilities, risk acceptance, and investment objectives, our top 10 coastal spots demonstrate excellent prospects with favourable cost to income ratios,” he added.
Outside of Scotland, Nefyn in Wales is a prime investment spot with an average house price of £241,500 and potential earnings of £48,000 yearly. Known for its picturesque beach and water sports, the village is also a hit with walkers and hikers due to its impressive Welsh scenery.
In England, the fishing village Robin Hood’s Bay in North Yorkshire stands out for investment, with an average property value of £350,500 and a promising annual revenue of £51,400. This tourist-friendly village is known for its narrow streets, traditional houses, and protected beach, plus it is near the North York Moors National Park, which offers numerous outdoor activities and stunning views.