Leeds has once again proven itself a great place to buy an investment property with forecasts
predicting the busiest housing market for the city in nearly 15 years.
A recent report from Zoopla suggests that during 2021, Leeds will see the most property
transactions in the city since 2007. And as sales levels have increased, so have housing prices in this
sought-after northern powerhouse city.
Hottest UK market
Across the country the number of average annual transactions has been on the rise. Zoopla predict
that throughout the UK, 1.52million properties will sell during 2021 – an increase of 45% compared
to last year. To put this into perspective, the average number of property transactions rarely exceeds
1.2million per year.
The report highlighted Yorkshire as one of the hottest markets in the country. And with Leeds
already in high demand from people buying an investment property or their own home in the city, it
is likely the number of Leeds completions will continue to rise.
Continuous price growth
But growing transactions aren’t the only increase the Leeds property market is seeing. The average
house price has also grown over the past 12 months. In the year from April 2020, property prices in
Leeds rose by 5.5%, taking the average house price in the city to £180,100.
This is a marked increase on the year to April 2020, when Leeds house prices grew by 3.6%. With
prices in the city expected to rise further, there could be no better time to buy an investment
property in Leeds.
Housing supply constraints
One of the reasons behind the increase in property prices is the continuing undersupply of housing
stock. However, this shouldn’t impact the high level of expected sales in 2021.
As Grainne Gilmore, head of research at Zoopla explains, “Supply constraints will continue to
underpin pricing. The lack of supply is expected to hamper potential sales during this year, yet even
so, we expect total transactions this year to rise to 1.5 million, marking one of the busiest years in
the UK’s residential market in more than a decade.”
Reasons to invest in Leeds
Lack of supply isn’t the only thing that has made Leeds a property investment hotspot. The city’s
relatively low housing prices mean there are opportunities for excellent rental yields, and the
booming population means there will always be tenants looking for somewhere to live.
There are huge development projects currently underway in the city, new jobs bringing plenty of
professionals and many further and higher education institutions attracting large numbers of
students. Leeds really has something for every kind of property investor.
If you’re interested in buying an investment property in Leeds, contact the local experts at North
Property Group today.