Scarborough Buy-to-Let Guide

According to Rightmove, the average price of a property sold in Scarborough over the past year was £197,654. This is significantly lower than the UK average price of £284,691 as stated by the UK House Price Index, suggesting that Scarborough is a relatively inexpensive area to buy property.

Scarborough’s average property price is 2% down on the year before, 6% up when compared to the 2021 peak. This sluggish growth has been seen across the UK property market in 2023, with some regions displaying subdued price growth, and the more unlucky regions experiencing modest dips. Scarborough’s prices have dropped slightly but they are still up on the 2021 peak.

But will this muted property market continue in Scarborough? According to most property experts, the UK property market is set to return to growth in the next few years. Looking at Savills’ Residential Market Forecast, UK mainstream capital value is projected to grow by 23.4% leading up to 2029. Yorkshire and the Humber, where Scarborough is located, is forecast to experience 28.2% capital value growth by 2029, higher than the UK average.

Scarborough is home to a wide range of property types. There are sea-view apartments, guest houses, bungalows and townhouses. Traditionally, the housing in Scarborough was terraced houses built during the Victorian and Edwardian periods. Four or five-story terraces are common as they were used to accommodate holiday visitors. Of course, plenty of semi-detached and detached houses across the town also exist.

So, what is the most popular type of property among buyers in Scarborough? According to Rightmove, most sales in Scarborough during the last year were semi-detached properties, and they sold for an average price of £206,645. Next, terraced properties fetched an average of £158,188, while flats went for £140,279.

Further Reading: Find out the definition of freehold vs leasehold or the answer to ‘What is a studio apartment?’ with our latest guides and insights.

Average Property Prices in YO12

The average property price in this area is £202,013.

Average Rental Yield in YO12

The average rental yield in this area is 3.94%.

So, where are the best places for buy-to-let in Scarborough? The most affordable part of Scarborough is YO11; Eastfield is a reasonably priced suburb. Due to the low property prices, this district has the highest rental yield of all postcode areas. However, parts of Eastfield have been identified as deprived in the past, meaning it’s worth researching before buying a property there.

Villages to the north of Scarborough, such as Scalby, are sought-after residential locations but a bit pricier than other areas, reflected in the disappointing rental yield.

The best area for short-letting potential is central Scarborough, especially when it comes to property close to the coast.

Strong Tourism Sector

Scarborough is a historic seaside resort town, making it an attractive spot for short-lets.

Another advantage of Scarborough is its proximity to areas of natural beauty. The town is home to some of the country’s most charming parks and gardens, as well as the famous beaches and coastline. In fact, North Bay Beach received the coveted international Blue Flag and Seaside Award last summer.

However, the town is not that well-placed for travelling or commuting. Even more prominent towns and cities in the Yorkshire region are inconvenient to get to, with trains to Hull taking 1 hr 25 mins, 74 mins for Leeds, and 48 minutes to York. Those who drive can make it to York in 70 minutes and Hull in 80 minutes. Therefore, Scarborough is not attractive for long lets unless the renter works nearby.

While new builds are popular investment choices due to the cheaper running costs and high demand from tenants, these properties are generally more expensive than older buildings. In order to combat this high initial expense, many investors are turning to off-plan investments. This is because by investing earlier on in the project while the development is still in the planning or construction stage, the investor can benefit from a discounted price and payment plans.

However, chances for new build investment are limited in Scarborough, so off-plan investment opportunities will also be few and far between. Currently, developments with options for off-plan investment are usually found in major urban centres due to the high demand from renters and good capital appreciation forecasts.

For this reason, it’s worth expanding the search to off-plan property in Bradford, Leeds, and other Yorkshire cities.

Investors looking beyond Yorkshire will also find more affordable off-plan opportunities in North West cities like Liverpool and Manchester.