A cultural hub with plenty to do and see, Leeds has long been noted as one of the UK’s key cities. One area that Leeds is gaining more recognition for in recent years is property investment, with predictions for the Leeds housing market to grow over the next five years. But what are the reasons behind this rise in Leeds as a property investment hotspot?
One of the reasons Leeds stands out when it comes to property is for the cities student scene. Leeds is home to the UK’s fifth largest university — the University of Leeds, along with other institutions including Leeds Trinity and Leeds Arts University. Any city that attracts high numbers of students will naturally have a demand for quality student property, and with student property being one of the lowest investment options which often comes with the highest yields, student accommodation could be a good route for investors to take in Leeds.
Alongside attracting students, Leeds is also a popular city for young professional tenants. Leeds is well known as one of the UK’s biggest business cities, boasting the second largest financial sector after London. Over 100,000 companies reside in the city, with some huge brands such as Burberry, Asda, First Direct and Jet2 providing high numbers of jobs to people in the city. Records show that more people are choosing to leave London and head to Northern cities, with a record number of people moving to Manchester in 2017. With Leeds being home to so many fantastic businesses, along with plans for Channel 4’s headquarters to move to the city, it’s likely that the population of professionals in the city will grow further. Property investment companies like RW Invest are recognising the potential behind Leeds for city centre property investment opportunities.
Much like other cities in the North, one of the main selling points for investment in Leeds is the affordability of property in the city. The average property price in Leeds stands at £164,900 in 2018, which is lower than many other UK cities, and more than £50,000 less than the UK average as a whole. Paired with a 2.47% rental price growth and a rise in the number of people renting in the city, property in Leeds has led to some attractive rental yields of 4.29% on average.
Regeneration will play a big part in the growing success of Leeds. Part of the Northern Powerhouse initiative, there are a number of big plans in store that will boost the cities overall economy, bring new interest and attention to the city, and attract new investments. Projects planned for the city include Northern Powerhouse Rail, which will make connectivity between Leeds and other key cities much easier and more efficient. Other regeneration projects include a £350 million regeneration scheme which will bring new business opportunities and homes to Leeds. These types of regeneration projects, paired with the fact that Leeds house prices are predicted to grow further over coming years, mean that now is a great time to invest in Leeds property for a lot of capital growth potential.