Leeds property prices have soared to their highest level since 2006, according to the Halifax House Price Index. House prices in Leeds and the rest of Yorkshire increased by an annual average of 10.2% in the year to May and now stand at an average of £183,404. These fantastic results have helped secure the region – and Leeds in particular – as a top choice for property investment opportunities, for both experienced and first-time investors.
High demand, low supply
The housing price rise has been spurred on by unprecedented levels of demand and an undersupply of houses in Leeds. In fact, the gap between the demand and supply in the Yorkshire city was recently reported to be at its widest in almost a decade.
This has caused the house price growth in Leeds and Yorkshire to outpace the UK average of 9.2%. But with the average UK property now priced at £261,743 – well above the average Leeds property – Leeds still has some of the best property investment opportunities in the country.
As well as the stamp duty holiday, the coronavirus pandemic has had a massive impact on the country’s property market.
Russell Galley, managing director at Halifax, explained the effect of the pandemic on the UK’s housing market. He said, “For some homebuyers, lockdown restrictions have resulted in an unexpected build-up of savings, which can now be deployed to fund bigger deposits for bigger properties, potentially pushing property prices even higher.
“Whilst these effects will be temporary, the current strength in house prices also points to a deeper and long-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles – as greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing.”
The south east underperforms again
Whereas traditionally investors may have looked to the south east for property investment opportunities, the growth rate for house prices in this part of the country is still lagging behind.
The south east of England saw almost the lowest property price increase in the entire country at just 6.1%. London performed even worse, with price rises reaching a lowly 3.1% – way below the UK average and even further behind the results in Yorkshire and Leeds.
As Russell Galley went on to say, “The south of England, traditionally the driving force of national house price performance, is lagging somewhat behind the rest of the country.”
Find out more
For more information about property investment opportunities in Yorkshire and Leeds, contact the Leeds property experts at North Property Group today.