Hull Rental Market Update: What Landlords Should Know in May 2025

Whether you're a seasoned Hull landlord or considering your first investment property, staying informed about the local rental landscape is crucial for maximising returns. The Hull property market continues to demonstrate remarkable resilience and growth in 2025, offering compelling opportunities for investors at all levels.

Hull: The UK's Hidden Investment Gem

Hull stands as one of the UK's most affordable investment cities, with average property prices of £135,000—significantly below the national average of £268,000. This low barrier to entry combines with impressive rental yields to create what savvy investors increasingly recognise as the UK's hidden property gem.

What makes Hull particularly attractive in May 2025:

• Exceptional affordability compared to nearby cities and the national average

• Strong rental yields reaching up to 9.2% in prime areas like HU1

• Growing cultural cachet following national recognition (The Sunday Times recently named HU1 among "11 coolest UK postcodes to move to in 2025")

• Ongoing regeneration transforming key neighbourhoods and boosting property values

Record-Breaking Rental Yields in Key Postcodes

Hull's rental yields continue to outperform most UK cities, with several postcodes delivering returns that would be unattainable in London, Manchester, or even Leeds:

• HU1 (City Centre/Marina): Now achieving yields up to 9.2%, up from 6.7% last year

• HU2: Consistently strong at 8.9%, popular with young professionals

• HU3: Offering solid returns of 7.2% with more affordable entry points

• HU5 & HU6: University-adjacent areas delivering 6–7.5% yields with minimal void periods

One-bedroom properties have seen the strongest rental growth at 12.5% year-on-year, with average rents for these units now exceeding £600 monthly. This growth significantly outpaces both regional and national averages, reflecting Hull's strengthening appeal.

High-Demand Areas: Where to Focus Your Investment

Hull's ongoing renaissance is creating investment hotspots throughout the city:

City Centre & Marina (HU1)

The undisputed star of Hull's property market, with 18.47% price appreciation over the past year. The Fruit Market and Old Town areas blend historic architecture with contemporary amenities, attracting young professionals and downsizers alike.

The Avenues (HU5)

Tree-lined streets, period properties, and proximity to the university make this area perennially popular with academics, professionals, and established families.

Newland Avenue & Beverley Road

These vibrant corridors offer excellent transport links alongside thriving independent shops, cafés, and restaurants—perfect for capturing the young professional and student markets.

University Quarter (HU6)

With strong student demand providing reliable occupancy, this area offers attractive returns for HMO specialists and those catering to the academic market.

Tenant Demographics Driving Growth

Hull's rental market benefits from diverse tenant demand across multiple segments:

• Students: The University of Hull hosts over 16,000 students, creating reliable demand for quality accommodation

• Young professionals: Often priced out of larger cities, they're attracted by Hull's affordability and improving lifestyle offerings

• Remote workers: The post-pandemic shift to flexible working continues to bring new residents seeking value and space

• Families: The relative affordability of three-bedroom properties attracts families who might otherwise struggle to find suitable rentals elsewhere

Navigating Regulatory Changes

While the previously proposed EPC requirements have been postponed, forward-thinking landlords should still consider energy efficiency improvements:

• Properties meeting higher EPC standards typically achieve higher rents and attract quality tenants

• Energy-efficient homes experience lower vacancy rates and better tenant retention

• Government grants and incentives can significantly offset improvement costs

At Lime Property, we can help you navigate these requirements cost-effectively while enhancing your property's appeal and value.

Why Partner with Lime Property?

As Hull's rental market continues to evolve, working with a specialist local agent offers significant advantages:

• Hyperlocal expertise in Hull's micro-markets and emerging hotspots

• Strategic pricing that maximises returns while minimising vacancies

• Rigorous tenant screening to protect your investment

• Comprehensive management from marketing to maintenance

• Regulatory compliance assistance across all aspects of landlord responsibilities

Looking Ahead: Hull's Investment Outlook

Hull's property market fundamentals remain exceptionally strong heading into summer 2025:

• Continued price growth in targeted regeneration areas

• Rental demand outpacing available supply

• Ongoing yield advantages compared to regional competitors

• Strong employment drivers, particularly in renewable energy sectors

For both new and experienced investors, Hull offers a rare combination of affordability, growth potential, and strong returns that positions it as one of the UK's most promising property investment locations for 2025 and beyond.