Leeds is hotly tipped as a buy-to-let investment hotspot in 2021. So, here are five reasons why you should make a Leeds property investment this year.
Leeds has an incredibly fast-growing economy, and is in fact one of the fastest-growing in the UK. The strength of the Leeds economy even puts it on par with a number of major European cities. Despite the ongoing effects of the global pandemic, JLL predicts Leeds will see a 13.7% growth over the next five years.
The strength of the Leeds property market means it is a secure choice for buy-to-let investors. This makes a Leeds property investment an investment into peace of mind.
2. Thriving property market
The strong economy of Leeds lends itself to a thriving property market. The average house price in the city is still relatively low, at just £175,000, meaning rental yields and capital growth is high.
A Leeds property investment has an average rental yield of over 5%, though this can reach double figures in the right parts of the city. Over the past five years, housing prices have grown by an average of 9.4%, which is only set to continue.
With 73% of Leeds households currently renting, the financials are supported by high tenant demand and long-term tenancies. This all makes Leeds a key location for property investors.
3. Huge investments in development
There are some truly exciting development projects underway in Leeds, all offering opportunities for Leeds property investment.
From the £300million SOYO project that will create a brand new cultural quarter in the city, to the 253-hectare South Bank scheme that will radically rejuvenate the area south of the River Aire, Leeds is a city undergoing huge change.
4. “North shoring” hotspot
Leeds is a key location for what has become known as ‘north shoring’, a term used to describe the many companies moving north. Businesses are increasingly drawn north by the cheaper operating costs available compared to the south of England. Just some of the major companies that have moved to Leeds recently include Channel 4, HMRC, and Sky.
Along with new employment prospects come people. Leeds is also a top choice for professionals leaving London in search for a better quality of life. It is likely the effects of the coronavirus pandemic and lockdowns will mean even more people leave London for Leeds in 2021.
5. A high student population
As well as a secure investment for those renting to professional tenants, a Leeds property investment is also an excellent option for investors into student properties.
Leeds has a thriving student population with almost 40,000 people studying in the city full-time. And because all of these students need somewhere to live, a student property investment in Leeds is guaranteed to be in high demand.
With the wide rollout of the covid19 vaccine during 2021, it is likely things will be back to normal for Leeds students soon. This means 2021 should see the city’s student population back to full-force once again.
Contact us – Leeds Property Investment
To find out more about investing in a Leeds property in 2021, contact the Leeds property investment experts North Property Group today.