Their research looked at which cities had seen the biggest increase in rental market prices, and where the build to rent sector generated the biggest rental premiums compared with the regular buy to let market.
A big impact on rents
The build to rent sector has had a big impact on the Leeds buy to let market, with 6% growth on rents over the past year. The average monthly rent of build to rent investment properties in Leeds now sits at a strong £892. This is compared to an average monthly rent of £818 on the regular Leeds rental market.
Manchester also performed well. This other Northern Powerhouse city saw 3% annual rental growth and average build to rent rents of £923 per month compared to regular monthly rents of £846.
What tenants want
So what is it about build to rent properties that allow them to command these rental premiums? Often, they are in the most sought-after city centre locations where tenants want to live. They usually come with sought-after amenities, such as parking, outdoor spaces, co-working areas and fitness facilities.
This makes them excellent choices for investment properties in cities like Leeds, where more households than average live in the private rented sector (nearly 20% compared to the UK average of 18.1%).
Thanks to their popularity with both investors and tenants, there doesn’t look to be any slowdown in sight for the sector. The UK’s build to rent sector is predicted to be worth £146billion by 2025, with northern cities continuing to outperform those in the south.
Build to rent investments in Leeds
There are various opportunities to purchase a build to rent investment property in Leeds through North Property Group.
One of these is Phoenix. Once complete, Phoenix will be Leeds’ fourth tallest building, giving residents unbeatable views of the city alongside first-class apartments and amenities. Sitting in a prime city centre location in Leeds’ Cultural Quarter, units here start at just £149,950 with yields expected at 7%.
Another great Leeds investment opportunity is Archway. This South Bank development has just 29 apartments available, which can be let under a serviced apartments AirBnB model, thereby generating huge yields of 21%. With units starting at just £93,950, fantastic returns are possible at Archway.
Find out more
If you’d like to know more about making a build to rent investment property in Leeds, contact the Leeds experts at North Property Group today.