Why Invest in Hull?
Ask most people in Britain for the first thing they associate with Kingston upon Hull and you might get a range of responses. You might hear about fisheries, it’s huge port, or a football-team-naming controversy. What you might not hear about is cutting-edge engineering projects. But this looks set to change.
Recent years have seen automation pioneer Siemens make sizeable investment in the area. With so many new jobs being created for highly-skilled professionals, property investment in Hull has never looked more alluring.
Let’s take a moment to take stock of exactly what’s been happening.
In February 2018, Danish energy giant Ørsted caused a stir by selecting Siemens Gamesa Renewable Energy to supply the turbines for their offshore facility. This wind farm, due for completion in 2022, is going to be the world’s biggest, and will provide 1.4 gigawatts of energy. Each new turbine will employ larger 81.5-metre blades, making them 20% more efficient than the previous generation.
The Siemens Gamesa factory in Hull opened its doors in 2016, at a cost of £310 million. This latest venture will create more than two-thousand temporary jobs between now and the project’s completion, with another 130 necessary to keep the farm operating after completion.
All these highly-skilled staff will need somewhere to live over the duration, making buy-to-let investment in Hull and the surrounding area particularly attractive. This is especially true given that further investment into renewables is likely to follow as Britain looks to free itself from oil-dependency, and reduce its carbon footprint.
Siemens’ ambitions for Hull aren’t just limited to wind power. They’ve recently also acquired a £1.5 billion contract to produce 94 state-of-the-art ‘deep tube’ trains for Transport for London, all of which will be designed and produced at a multi-million pound factory in Goole, just downriver from Hull. This facility will bring up to 700 skilled engineers, and another 250 construction workers to actually put the factory together. The trains will eventually service the 700,000 commuters who use the Piccadilly line.
Comparisons have already been drawn between this latest renewables project and the discovery of oil in the North Sea in the 1960s, which incited thousands of foreign experts to flock to Aberdeen in search of black gold. An upsurge in demand for accommodation swiftly followed, with hotels, housing and construction enjoying a protracted boom. The prospect of a similar boom hitting Hull has gotten the attention of the entire city.
Local employment opportunities are a significant driver of Hull’s developing property market, with average house prices rising by 13% between July 2016 and July 2017. Given the nature of many jobs in wind-farm production, high-quality central accommodation with a range of amenities nearby is in high demand. Buy-to-let in Hull thus looks to be among the best UK property investments available.
The local economy around Hull might benefit from the UK’s withdrawal from the Customs Union, according to modelling by a former Treasury economist. The recently-published report suggests that up to 150,000 jobs could be created across the North by slashing import tariffs and providing businesses with tax incentives. This will naturally increase the value of high-quality property in the area. For property investment in Kingston upon Hull, the future looks rosy!