Real estate professionals JLL have unveiled Leeds as the top spot in their property investment forecasts. For the first time in four years, Manchester is no longer first for residential price and rental growth in the UK. Thanks to its strong property market; Leeds now holds the top spot in property investment.
Over the last ten years, demand for housing in Leeds has grown significantly compared to the city’s low residential values and lack of residential development. This situation has led to predicted house price growth in Leeds of 17% over the next five years. This is compared to 16% in Manchester and 13% in Liverpool. The national average is just 11%.
In the very short term, JLL expects property price and rental growth in central Leeds to increase by 2.5% between 2019 and 2020. This is 2% more than the average UK house price growth for the same period.
Although JLL predicts Manchester’s house price growth by 2020 to match that of Leeds; and for rental growth to exceed it at over 3%, the big difference is in their respective property prices. The average two-bed apartment in Leeds cost just £180,000 in 2018, whereas in Manchester this was a much pricier £255,000.
Demand for Leeds city centre apartments remains extremely strong. The focus of the city as an investment opportunity, coupled with the lack of supply, has helped Leeds become the standout city of UK property investment.
With Leeds continuing to defy Brexit uncertainty; the city may see demand rise even higher. Charles Calvert, head of JLL’s residential team in Leeds, said: “Despite Brexit headwinds, the housing markets in Yorkshire have performed above the national average over the past 12 months.
“In Leeds, compared with other major cities, and more locally with York and Harrogate, residential values are typically lower. This, coupled with a fundamental lack of new development in the city centre since the Global Financial Crisis means demand is outstripping supply.”
Oli Banks, managing director of North Property Group agrees; “The majority of the new residential developments in Leeds are off-plan and marketed at buy-to-let investors. This has created huge demand in the owner-occupier market which in turn has led to healthy house price growth. This is great news for all of our Leeds investors.”
With the top three cities in JLL’s report located in the north; this is yet another example of how the region is thriving. Northern cities have proven themselves to be the standout performers in the UK property market; something that isn’t due to change any time soon.