Why invest in Gainsborough?
October 12, 2023
Gleadells Wharf
Residential riverside properties on the River Trent
64 units from £148,000
Only 20% required now
GROSS RENTAL YIELDS up to 6.5%
Gainsborough is a thriving Lincolnshire market town with major growth ambitions. A 20-year regeneration plan for the town is already underway – making now the ideal time to invest in the town. We’ve written before about the value of investing in large scale areas of regeneration and the double uplift this can offer investors; that of the uplift of buying early and off-plan in a regen scheme and also the natural capital appreciation of your investment over time.
Gainsborough offers a diverse range of places to live, from riverside warehouse apartments through to modern estates of executive housing and more village-like developments. The town is set to grow significantly through the local authority’s £18 million investment, that aims to restore the historic fabric of the marketplace and town centre and introduce big brand shops and new businesses, resulting in an economic growth forecast of 12% which also supports the 47% increase in the number of homes as a government established ‘Housing Zone’ before 2036.
Gainsborough property has historically been more affordable compared to larger cities in the UK, however, recent investment and rising house prices from surrounding towns and cities have made the location a desirable place to purchase property. Because of this Gainsborough has seen an 11% price growth in the past year and is set to increase over the coming years.
Presently, the town is an attractive option for investors seeking lower entry costs before significant capital appreciation and will provide higher rental yields, in comparison to surrounding areas which have already peaked in value.
In addition, it has high-performing Grammar Schools, easy access to top universities and varying employment opportunities, all of which make it the ideal location to invest now.
RENTAL DEMAND
There is high rental demand for quality modern properties in Gainsborough. The town’s rental market currently has a severe shortage of high-quality modern new build properties with many renters forced to rent older properties such as dated conversions.
There is a high demand from professional tenants, short-term lets to business employees and tourists.
Rental values in the location are set to dramatically increase due to increasing property values making the area less affordable for first-time buyers.
There is also a lack of good quality serviced accommodation in Gainsborough, typically a one-bedroom serviced apartment in Gainsborough will rent for £60 to £70 per night, while a two-bedroom serviced apartment can cost around £80 to £130 per night.
Currently, new-build homes are commanding strong rental premiums as high as 41%, according to research by Unlatch. As new builds provide a superior quality of accommodation, these properties are naturally earning a higher rental value and yield; this is one of the big factors attracting landlords to invest in new builds.
Gleadells Wharf
Residential riverside properties on the River Trent
64 units from £148,000
Only 20% required now
GROSS RENTAL YIELDS up to 6.5%
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GEORGE RADFORD
MANAGING DIRECTOR (UAE &AFRICA)
about the AUTHOR
George is the co-founder of RPA Group and Managing Director of the business in the UK and Africa. A qualified Chartered Surveyor (MRICS) with almost 20 years of property investment experience, George has helped his clients to successfully grow and strengthen residential property portfolios over multiple markets and territories. Active in building and advising upon his client’s investments, George is now focusing on procuring UK investments exclusively for RPA Group clients and investors, providing insightful and strategic advice and opportunities.