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Many landlords feel that major cities are the best places in which to invest because they attract a large number of students and young professionals looking for rental properties. However, there are alternative towns to consider. Seaside towns are attractive propositions too with the additional bonus that properties could be cheaper than in major cities.

Research by online property investment company LendInvest looked specifically at coastal towns to determine which offered the best average rental yields for landlords. Top of the list was Hull, which will be the UK City of Culture in 2017. Rental yields in seaside resorts within the Hull postcode area, such as Withernsea, can enjoy yields of up to 10.7 per cent.

The next best postal area is Blackpool, famous for its Pleasure Beach, pier and donkey rides. In the resort itself, landlords can achieve rental yields of 8.2 per cent. The North Wales resort of Llandudno comes third with investors in Colwyn Bay enjoying yields of 6.1 per cent. Sticking with Wales, renting out a property in Barry, Cardiff, fetches 6 per cent.

Many of the best investments can be found in the north of England or Wales although Ramsgate in Kent and Portslade in the Brighton and Hove postcode district fared well too.

Obviously, it is important to research thoroughly because some of these towns may attract short-term holiday renters which is a very different market to long-term workers. Other towns may attract people who want to retire by the seaside while others have high numbers of unemployed people. So a proper investigation of the demographics and demand for rental properties needs to be carried out.

It is also worth looking at future plans as a town could be in line for a chic marina development, high-class hotel complex or leisure facilities which could attract more tourists and drive up property prices still further.

In addition to location, price is another factor, with the most expensive seaside towns being in the South West. According to the Halifax, Sandbanks is the most costly seaside town, with an average house price of £664,655 followed by Salcombe at £539,950 and Padstow at £443,396. These are popular holiday destinations and it could well be worth investing in short-term rentals in these locations.

The cheapest seaside properties are in Scotland and the North of England with Port Bannatyne topping the list with an average price of £77,132 followed by Newbiggin by the Sea in Northumberland at £81,259 and Girvan at £91,912. Scotland’s priciest seaside town is North Berwick with an average price of £327,124.

Halifax housing economist Martin Ellis said the seaside is popular because of the scenery, weather and lifestyle but it comes at a price. He added that people looking for holiday homes in popular towns are also putting pressure on the market and forcing prices up.

The annual Halifax Seaside Town Review also shows that the average house price has soared from a 2006 figure of £166,565 to £219,386 in 2016, which is an average increase of £440 every month.