Thanks to its fast-growing population, thriving economy and relatively affordable prices, Leeds is one of the country’s property investment hotspots. Recent years have seen property prices rise faster than many other UK cities; so what are experts forecasting for the future?
Although the city as a whole is booming, particular areas of Leeds have experienced particularly high property price growth over the past year. There have even been six districts that have seen increases of double digit figures. Between 2018 and 2019, property prices in Killingbeck and Seacroft and Adel and Wharfdale rose by 15%; Middleton Park by 14%, Moortown by 12% and Armley by 11%.
But what is predicted for the future? The answer is extremely positive. Real estate professionals JLL rate Leeds as the top prospect for house price and rental growth in the UK.
The lure of the city’s modern lifestyle and excellent job prospects is drawing more and more people to Leeds. JLL believe this will help boost the city’s housing market, generating overall house price growth of 17.1% by 2023.
Leeds Takes the Top-Spot of Property Price Growth Forecast
These fantastic figures have enabled Leeds to replace Manchester off of the top-spot of JLL’s property price growth forecast for the first time in four years. Manchester now moves into second place with predicted house price growth of 19.5%. Liverpool comes in third at 12.6% growth.
Also pleased with JLL’s rental price forecast will be buy-to-let landlords. Set to increase by 17.1% over the next five years are rents in Leeds; compared to Manchester’s 16.5% and Liverpool’s 15.9%.
As well as all of the benefits that Leeds has to offer its residents, JLL say that the lack of housing supply has helped push up property prices in the city.
Leeds is to Benefit From Brexit
JLL’s predictions assume that a Brexit deal will be made; furthermore they assume there will be a transition period until the end of 2020. JLL state that while Brexit uncertainty has affected some areas of the property market, the high potential in Leeds makes it a great bet for property investors.
The head of JLL’s residential team in Leeds, Charles Calvert, explains; “There remains very little development of apartments for owner occupation in Leeds. Marketed off-plan and targeted at buy-to let investors have been the majority of schemes that have been completed in recent years. These schemes are relatively small in scale and the majority are office-to residential conversions. We believe that there is significant pent-up demand for high quality, highly specified new apartments within the city which will attract a significant premium over existing stock and we have buyers queueing up waiting the delivery of the first scheme to deliver this level of quality.”