One of the most important decisions when buying a first-time investment property is the location. As a new investor, you’ll likely want to buy somewhere with low risks and high returns.
Though there are many places you could choose to invest, we think Leeds tops the list. Here are five reasons why Leeds is perfect for a first-time property investment.
1.A proven and resilient market
In recent years the Leeds property market has gone from strength to strength. Investing in a healthy market is an attractive option for first-time property investors, as it reduces risk and ensures peace of mind.
Leeds is also the UK’s fastest growing city with an economy that has increased by 34% over the last decade. The city’s economy is now worth £21.3 billion each year.
Such strong performance proves the resilience of the Leeds property market and makes it a top choice for first-time property investment.
This strong house price growth means excellent capital returns. And with Leeds property prices being much lower than the UK average, investors can be assured of profitable sales once the time comes.
In the meantime, buy-to-let investors into Leeds property benefit from some of the highest rental yields in the country. Yields here can reach up to 8% in some areas – far above the UK average of 3.5%
With such excellent returns, it is no wonder Leeds was named the most profitable northern city to be a landlord last year.
The buoyant Leeds’ housing market is driven by strong demand for property in the city. Leeds is home to some of the country’s top employers and has a wealth of beautiful green space, making it an attractive location for professionals keen to leave places like London.
Buying in a city with strong demand is vital when making a first-time property investment. Without demand there is a risk that your property will be empty, which will lose you money.
In Leeds, there is no such risk. As well as young professionals, there is strong demand from families and students, who all require good-quality homes. With a large proportion of the Leeds population renting, the city is a secure choice for a buy-to-let investment.
4.Great future prospects
The future of Leeds is bright. Housing prices are expected to outperform predictions for 2021 and beyond, increasing by 13.5% by 2026. Rental yields will also grow, rising by 2.5% in 2022, 3% in 2023 and 2024, and 2.5% in 2025.
There are some truly exciting development schemes in the pipeline for Leeds too. Projects in the Northern Quarter and the South Bank, as well as the major SOYO investment, will increase demand and economic success in Leeds for years to come.
5.Plenty of choice
From off-plan investments, to HMOs, to student build-to-rent apartments, there is a huge amount of choice when buying a first-time investment property in Leeds. Whatever you want from your investment property, Leeds has it.
And with new ground-breaking developments popping up all the time – such as the stunning new ‘Phoenix’ skyscrapers – you’ll be able to continue growing your Leeds investment portfolio.
Start your investment today
To find out more about buying a first-time investment property in Leeds, contact our friendly and helpful team at North Property Group today.