Whether you’re new to property investment or already have a portfolio, 2020 is the year to invest in the North, but with so many great Northern cities it can be hard to decide where to invest: to help you choose, we’ve put together the top five reasons to invest in our pick of Northern cities for 2020, first up, it’s the home of North Property Group: Leeds.
1. One of the fastest-growing populations in the UK
As the fastest-growing population of any UK city outside of Manchester, the number of people in Leeds is rising at seven times the rate of London. In 2019 its population was already at 815,000, which is only expected to increase as more people move here for a better way of life.
Young professionals, families, and students alike will continue to flock to the city throughout 2020. Despite this, there will still be a severe under-supply of quality housing, creating huge demand in this popular Yorkshire city.
2. Billions of pounds of investment in Leeds regeneration
The huge investment projects that Leeds has seen over the past few years will continue into 2020. There is nearly £7 billion of development in the pipeline, including the regeneration of the South Bank area.
As one of the largest-city centre projects in Europe, the South Bank regeneration will completely redevelop a space the size of 350 football pitches in Leeds city centre. Once complete, the South Bank will be the location of over 8,000 new homes and 35,000 jobs.
3. The second biggest UK economy
The Leeds City Region is the UK’s biggest economy outside of London. Its wider economy is worth £66.5 billion per year, £31.2 billion of which comes from the city of Leeds.
The economy here has grown by over 40% in the last ten years. This has drawn numerous international businesses to the city and helped to create fantastic employment opportunities. Just some of the big names in Leeds include Sky, First Direct, and Asda Walmart.
Leeds now boasts the largest centre for financial and business services outside of London. It is also known as ‘the digital capital of the North’, thanks to its £1 billion tech centre.
4. 211% property price growth in Leeds boosting investment opportunities
Property prices in Leeds have grown by a massive 211% since 2000, and a very respectable 17% since 2014. The city is also Yorkshire’s top region for average rental yields, coming in at between 6% and 12%. Seven Capital have even identified the city’s LS6 postcode as having one of the highest rental yields in the country.
Property experts JLL have forecast house price growth in Leeds to reach almost 20% by 2022, with rental yields increasing by nearly 19%. With the average two bedroom apartment in Leeds costing just £180,000, 2020 is the year to invest in the city.
5. Fantastic investment properties available
There are some great housing developments in the pipeline for 2020. Northgate House near the city’s universities will complete in Q1 2020 and offers a range of luxury one and two bedroom apartments. Units at Northgate House start at just £144,500 with an expected gross yield of 6.7%.
If you’d prefer to invest in something that is ready now, Public Haus was completed in December 2019 and offers 16 new-build two bedroom apartments in Leeds city centre. You can purchase a property here for just £185,000, with gross yields expected to reach 6.8%.
To get your 2020 off to a great start and begin your investment in Leeds, contact the city’s experts, North Property Group today.