Leeds is one of the fastest-growing and most thriving cities in the UK making the city perfect for property investment. A booming population has created a huge demand for housing from potential tenants, making Leeds one of the best locations for buy-to-let property investments.
Leeds is therefore gaining a well-deserved reputation as a buy-to-let hotspot and is generating increased attention from investors. If you’re new to the city and interested in investing here, North Property Group have put together this handy guide to help.
The Leeds property market is booming. In 2018 it was reported to be worth £59.05 billion – up 4.2% since 2017. Leeds is also ranked ninth in Zoopla’s list of the top ten housing markets in the UK.
There are numerous reasons for the strength of the Leeds property market. As mentioned already, the population is booming. In fact, the population of Leeds is growing seven times faster than that of London.
People are moving to Leeds due to its excellent economy, career opportunities and universities. Leeds has a digital tech sector worth £1 billion and is one of the UK’s top creative cities. Its numerous institutes of higher and further education has grown the city’s student population to over 60,000.
With an increasing population comes a growing demand for housing, which Leeds is struggling to fulfil. There are 90,000 new homes needed in Leeds by 2021, but only 60,000 are currently planned. This level of high demand coupled with affordable property prices ensures property investors in Leeds can make consistent returns.
Where to invest in Leeds?
Although a property investment anywhere in Leeds is a great decision, there are some areas that are more in demand than others.
The first of these is Leeds city centre. Investors in a buy-to-let in the LS1 postcode can expect a 5% yield and properties that are quick to be tenanted. There is a huge demand for city centre living from both young professionals and students alike. With great amenities and ambitious regeneration plans, Leeds city centre is one of the best areas to look for a property investment. The average house price here is £179,183.
Headlingley is another popular location for buy-to-let investors. Although the average house price is higher than the city centre at £216,739, investors can expect yields as high as 7.4%. There is strong demand for quality housing in the LS6 postcode from students, young professionals and families alike. Headlingley boasts excellent transport links, great amenities and is close to Leeds Beckett University campus.
In recent years many students have moved to the new Leeds student hotspot : Woodhouse, Burley and Hyde Park. Comprising the LS2 and LS3 postcodes, the average house price here is £220,082 and yields can range from 5-10%. House shares and HMOs offer the best opportunities for investors in this thriving student area as city centre university campuses are within walking distance. The nearby Leeds General Infirmary also generates demand from hospital staff.
What can I invest in today?
There are lots of exciting developments currently in the pipeline in Leeds, including Green Quarter in Leeds city centre, the luxury Northgate House and the Grade II-listed conversion Pearl Chambers. If you’re interested in investing in any of these properties – or any other opportunities in Leeds – contact North Property Group today or click here to find out the property investment hotspots in the UK.