Leeds is one of the top university cities in the UK. It offers excellent opportunities for buy-to-let investors who want to reap the benefits of student tenancies. Here are five reasons why you should invest in Leeds student property.
1. Huge student population
Leeds boasts 9 universities including the well-known University of Leeds, Leeds Becket University and Leeds Trinity University. In any one year there are 60,000 students studying in the city, including 9,000 international students from over 170 countries. This number is always increasing, creating high rental demand.
Tenancies won’t just end when studies do, as nearly 30% of graduates stay in Leeds after university. New graduates prefer to continue living in shared accommodation, meaning they are likely to stay renting in your property.
2. Great student lifestyle
One of the reasons Leeds continues to attract huge numbers of students is because of its great student lifestyle. In fact, Leeds is consistently ranked as one of the best UK cities to be a student.
There are plenty of exciting places in Leeds to truly live the student life. When they aren’t studying, students can relieve university stress with some retail therapy in one of the city’s top shopping centres or quirky independent boutiques.
For people who prefer to unwind with sport there are plenty of places to play and watch all kinds of it. Leeds is particularly renowned for football and rugby – the famous Headlingey stadium is situated in one of the city’s most popular student areas.
Leeds is also full of excellent eateries and places to enjoy a night out. As well as the usual chain restaurant and pubs, Leeds excels in independents. From family-run cafes to interesting breweries to packed clubs, there is something in Leeds for everyone.
3. Regeneration and rejuvenation
Leeds has benefitted from huge levels of investment over the past few decades. What was previously an industrial city with many rundown areas is now a modern, thriving place to live. New developments and luxury apartments are constantly being built all over the city, attracting large numbers of young people.
In particular, Leeds has profited from the Northern Powerhouse project. It is one of the key Northern Powerhouse cities and sits on the HS2 route, opening the city up to the rest of the country and the world.
4. Thriving economy
The Leeds economy has transformed from mostly manufacturing-focused to service-based. Leeds is home to huge numbers of financial and media giants as well as a £1billion tech centre. It has therefore rightly earned the name of ‘digital capital of the North’.
The economy is thriving and has grown by 40% over the previous decade. The Leeds City Region is now the UK’s biggest economy outside of London, worth £66.5billion annually.
With such a booming economy and job market, it is no wonder so many students and graduates choose to call Leeds home.
5. Excellent buy-to-let returns
Due to the low property prices, great returns as high as 7-8% can be made with a student property investment in Leeds. As well as older style terraces in many of the more popular student areas, there are plenty of new build developments and redevelopment projects opening up all over the city.
One of these new build opportunities is Pearl Chambers. It is situated in the exact location where many international students want to live. Investors can therefore achieve fantastic rents here, creating great yields of up to 7.4%. Property prices at Pearl Chambers start at just £159,500.
An exciting Grade-II listed conversion is Centenary House. It is located in the trendy Northern Quarter of Leeds and is close to many amenities popular with students. Property at Centenary House starts at just £127,000 with yields expected to reach a huge 7.8%.