Such fantastic house price increases, along with some of the strongest rental yields in the country, point to Leeds being one of the best UK cities to invest in property.
Strong capital growth
The average Leeds property price now stands at £187,500, up from £176,056 last year. Within the wider Yorkshire and Humber region, house prices have increased by 7.6% over the last year – some of the strongest growth in the country.
But despite these booming house prices, property prices in the city are still far below the UK’s average. The typical asking price for houses across the UK is now £344,445, which makes Leeds property investments especially affordable.
But despite these lower-than-average house prices, the rental yields that can be achieved from a Leeds property investment are anything but low. The average rental yield in some areas of Leeds can be as high as 8.5%, with 5%-7% common for the city centre.
These booming capital gains and rental yields can be explained by strong demand from both Leeds tenants and those looking to buy a home or invest in property. In fact, Leeds properties have some of the highest demand in the whole of the country.
But despite this rising demand there is not enough housing stock in the Leeds pipeline. The gap between housing demand and supply in Leeds is at its widest since 2013, causing house prices and rents to soar.
Property prices across Leeds and the rest of the north west are set to continue to grow. In Zoopla’s September 2021 House Price Index report, they state, “The regions and countries with the highest growth rates are the most affordable – measured by the house price to earnings ratio.
“We believe there is headroom for further, above-average house price inflation in regions outside southern England.
“We expect house prices to continue to increase at an above-average rate in regional housing markets over 2022.”
If you’d like more information on making a Leeds property investment or investing in property in another of the UK’s booming northern cities, speak to one of North Property Group’s experts today.