Is There More to Property Investment in Cumbria than the Lake District?

Mention Cumbria, and most of us immediately think of the fells and tarns of the Lake District. Beautiful though it is, and full of holiday let potential, the Lakes are but a small part of Cumbria.

From the Scottish border, through the city of Carlisle and down to Lancashire, Cumbria covers not only a lot of ground, but a wide range of towns, industries and property investment opportunities.

We decided that for this article, we’d take a look at the region and its principal city, Carlisle, to discover how you could benefit from property investment in Cumbria.

So, from shipbuilding in Barrow in Furness, to the rugged views from the peak of Scafell, here’s our guide to one of England’s most beautiful regions.

Cumbria –  a brief history

Cumbria is the third largest ceremonial region in England, covering some 2.614 square miles, however being predominantly rural in nature it is the eighth smallest by population, being home to approximately 500,012 souls.

Nestling in the extreme North West of England, it borders Scotland, North Yorkshire, Lancashire and the Irish Sea.

Following the departure of the Romans from Britain in AD 410, ownership of Cumbria was contested by several groups, however by the time of the Norman invasion in 1066, it was a principality of Scotland.

It wasn’t until 1092 that the region was finally incorporated into England after the Scots were driven out. Naturally, as a border region, Cumbria has seen its fair share of cross-border raiding and disputes.

For anyone familiar with the area, it will come as no surprise that farming and tourism are among the major industries in Cumbria. Tourism alone accounts for some £1.1 billion of revenue, while employing some 36,000 Cumbrians.

In addition, the Sellafield nuclear reprocessing site employs some 10,000 workers. Barrow in Furness was notable for its shipbuilding throughout the 20th Century, although the end of the Cold War hit it hard.

Although this is perforce a very potted history, hopefully the diversity of the region shines through. Cumbria is much more than the Lake District.

Principal towns

Cumbria’s principal population centre is Carlisle, its only city and the most northern English city. In addition Whitehaven, Workington, the previously mentioned Barrow in Furness and Maryport are all sizable centres of population.

All of them offer solid opportunities for property investment in Cumbria beyond the holiday market of the Lake District national park.

Holiday lets

The Lake District continues to be an incredibly popular holiday destination, attracting both walkers and boat owners, but also many seeking to relax amongst some of England’s most beautiful scenery.

Income from holiday lets can be rewarding, however the Lakes is a mature market and you may find that buying a suitable property will require a greater initial investment.

While Ambleside, Grasmere, Keswick and Windermere continue to be in high demand, the compact nature of the national park means that there are still viable opportunities for holiday lets further from these hotspots.

If you want to buy an investment property in these popular areas, you will pay a premium, but further abroad you will find excellent opportunities in towns like Cockermouth and Whitehaven.

Since car travel is almost a necessity in the Lakes, being based a little further from the heart of the park is not an automatic bar to a profitable holiday let.

Right! That’s enough about the soaring peaks and glittering lakes, what if you’re looking for a more urban opportunity?

Carlisle

Carlisle is not a city which will thrill you with its soaring spires and tree-lined avenues – no, it’s a much more down-to-earth sort of place. That said, it’s not without its charms and many find it an attractive city.

It has a long military history, having been at the sharp-end of centuries of cross-border angst, and Carlisle Castle was the home of the Borders Regiment (now part of the Duke of Lancaster’s Regiment).

During the 19th and 20th century, Carlisle grew thanks to textiles, railways, construction and food production. According to Carlisle City Council, there are currently some 240 manufacturing businesses in the area.

There are also two campuses of the University of Cumbria in the city, serving some 8,000 students, so properties close to those will always be in high demand and HMO properties may be well worth consideration.

Housing in Carlisle

Carlisle enjoys some 67% of mortgaged or owned-outright homes, with the balance split largely between social (14.4%) and private (17.6%) rental. These numbers are fairly typical of modern British towns.

As such, they represent an opportunity for those looking for a property investment in Cumbria. House prices are, on average, not excessive, with terraced properties going for circa £125.491 and detached houses fetching £290,426.

These values are lower than many other parts of England, however until the end of 2022, Carlisle was seeing an overall rise in property values of around 7% per annum.

Average yields, across all areas of Carlise, should be around 4%. While not earth-shattering, combined with a high demand for good properties and stable house prices, should make Carlisle a solid, longer-term investment.

Advice from the property pros

Cumbria, and Carlisle, are steeped in history and as mentioned already, the Lake District continues to be a prime UK holiday destination. Carlisle is well placed on principal transport routes, both road and rail.

While Carlisle may not currently seem to be a standout investment opportunity – steady rather than exciting – the city continues to grow with promises of up to 10,000 new homes.

Add to that the demand for good, affordable rental property occasioned by the disparity between house building and demand, and Carlisle becomes an attractive prospect where attractive property prices can form the basis of good investments.

If you want to embrace holiday lets, well-marketed properties in the Lake District will generate excellent returns – just remember that your initial investment will likely be sizable.

If you’re looking for a solid long-term investment in a region that is likely to return reliable returns, Carlisle and the region for which it’s the administrative centre could be a good choice.

Reasonable returns can be had for reasonable investments and you may find that it’s a good place to start building a property portfolio.

In summary…

Carlisle, as well as the other major towns in the region, offer a good opportunity for property investment in Cumbria. We would suggest that if you’re interested in good, long-term growth without a large initial investment, this region will suit you well.

As professionals with decades of experience, we are able to offer you advice and guidance on which opportunities will best suit your goals and situation. Just drop us an email or pick up the phone to start the conversation.

Thanks for reading and we hope this has been helpful, and interesting. Cumbria is a lovely region and Carlisle has great potential given its location and ease of access. It’s worth your consideration and we’d love to help you realise your ambition.

Written by Chris Wood, MD & Founder of Portolio

Get in touch on 07812 164 842 or email [email protected]