Blackpool - It's not just Kiss Me Quick Hats anymore....

Why you should invest in Blackpool?

Blackpool and the Fylde Coast has a rich economic history and is still the home to the UK’s most popular seaside resort attracting over 18 million visitors annually generating an additional ￡1.4 billion to the local economy and supporting 24,000 jobs directly supported by tourism.

The Fylde Coast is also home to well-established industries such as food manufacturing and production, office administration, aviation and medical technologies, but also there are developing business clusters surrounding the advanced manufacturing and engineering sectors and emerging energy markets that are bringing forth a new skilled and trained workforce for the future. Well known brands like Fishermans Friend and B&M stores all originated on the Fylde Coast.

What is the future for Blackpool?

Firstly, a ￡1 billion Growth & Prosperity Programme is taking place across Blackpool with major regeneration schemes in the town centre, the new Central Leisure Quarter and Blackpool Airport Enterprise Zone.

Over ￡570m has already been invested in the past decade to transform Blackpool and the next phase of development is underway which includes a new ￡26m Conference and Exhibition Centre and a ￡23 million new tramway extension. Future developments will also include an extension to the Hounds Hill Shopping Centre, development of Talbot Gateway Phase 2, an IMAX-style cinema complex and new restaurants and hotels including Blackpool’s first five star hotel.

Have you heard about the plans for Blackpool Central?

Plans have been revealed for the biggest, single, private sector investment in Blackpool’s tourism industry for more than a century. The ￡300m Blackpool Central redevelopment will bring world-class visitor attractions to a 17 acre landmark site on the famous Golden Mile along with new hotels, restaurants, an artisan food market, event square, residential apartments and multi-storey parking. It is anticipated that that the development will attract 600,000 additional visitors a year with a combined annual spend of ￡75m and create approximately 1,000 new jobs.

What’s the Blackpool Airport Enterprise Zone I hear you say?

Located at Jct 4 M55, the Enterprise Zone is a vibrant business hub and a key location for the development and logistical support of the UK’s emerging energy markets, attracting national and international investment.

Blackpool Airport Enterprise Zone is a 144 hectare site incorporating a Category 3 airport and surrounding business parks in South Shore, Blackpool. As one of the largest Enterprise Zones in the UK, over 25 years the site will transform Blackpool and the Fylde Coast’s economic base, positioning itself as a premier business location in the North West.

The council owned Blackpool Airport is a significant part of the local economy and is essential to the future commercial success of the Enterprise Zone, operating a varied range of private flights, pilot training, maintenance and helicopter services.

Blackpool Council, as the accountable body and majority landowner, has allocated ￡28.8m over the first three years to deliver essential infrastructure to help unlock sites, kick start development and attract investment to meet the increasing occupier demand.

The Enterprise Zones ambition is to:·

• Attract over ￡300m private investment
• Create up to 5,000 new jobs
• Develop new infrastructure
• Encourage up to 140 new businesses to the area
• Build, convert or re-purpose 260,000 sq m of potential employment space

Electrification of the Main Rail Line?

Blackpool is easier to reach than ever before with a new multi-million pound upgrade and electrification of the main rail line from Blackpool North to Preston, meaning direct, faster routes to London Euston, Manchester, Liverpool and the West Midlands with the potential to open up new routes to more destinations in the future.

What about the Blackpool Property Market I hear you say?

Blackpool is home to over 140,000 people and even though the average property prices in Blackpool are some of the lowest in the UK it is still one of the hottest property markets especially if you are looking for cash flow, solid return on your investment and looking to build a portfolio for the long term.

The average UK house price is around ￡228,000 where in Blackpool it’s around ￡126,000. Since 1995 the average price of property across the Fylde Coast has increased by 161% and over the last 5 years capital growth is around 12%. My portfolio however, has increased by 24% over the same period. Rental yields on average are between 5 and 7% however, if you buy in the right areas and at the right price you can easily see returns of 10% which again is what I am achieving in my portfolio.

Blackpool is a family town so the best investment properties are 2 and 3 bed properties many of which need refurbishment so it’s a great strategy for Buy, Refurb and refinance. Is it possible to recycle all your money through this strategy? The answer is yes but it all depends on the area you buy in so it’s essential you do your due diligence or you work with someone who know the area.

Serviced Accommodation works well in Blackpool and there are some operators that are generating very healthy returns. However, it’s important to recognise that it is a seasonal town so it’s essential that you plan manage your expectations and occupancy levels throughout the year.

What’s the appetite for HMO’s? Blackpool is awash with HMO’s mainly created through old guest houses that have been turned into bedsits and alike. However, over the last few years a number of HMO operators are creating high quality HMO’s aimed at professional workers and generating healthy returns. Again like any property strategy it is important to do your research and due diligence and buy in the right area.  

There are many reasons why Blackpool is a great investment area and if you would like to find out more or would like to discuss how Aspire Investing can help you achieve great returns by investing in Blackpool property market then please get in touch.

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