Real estate firm JLL has rated Leeds as the top prospect for house price and rental growth in the UK. They predict that house prices in the city could grow by as much as 17.1% by 2023.
Leeds Ranked Number One
Leeds’ house price and rental growth has knocked Manchester off the top spot for the first time in four years. This north-west city will still experience healthy house price growth of 15.9% by 2023, despite being demoted to second place. Liverpool comes in third with predicted house price growth of 12.6%.
Overall, expected to see house price growth of 10.4% and 12% by 2023 respectively, are Yorkshire and the North West.
Echoed in the rental growth is this strong northern performance. In Leeds this is forecast to increase by 17.1% over the next five years. Manchester’s rental price will rise by 16.5% by 2023 and 15.9% in Liverpool over the same period.
According to JLL, this growth is a result of northern cities establishing themselves as top performers in residential investment and development. Cities like Leeds, Manchester and Liverpool have also benefited from huge city-centre residential demand and a shortfall of supply, which have only pushed up prices further.
Leeds has additionally profited from lower residential property values when compared to other major UK cities. JLL forecasts property values in Leeds will increase by an average annual rate of 3.3% over the next five years. With rental rates increasing by 3.2% over the same period.
High Demand For Land In Leeds City Centre
Demand for land in Leeds city centre remains extremely strong due to a shortage of supply. A total of 29 sites have been identified that could create over 10,000 apartments in the city centre, doubling the present total housing stock. As only 45% of these developments currently have planning permission, these schemes will be delivered over a few years, thereby reducing the risk of over-supply.
Oli Banks, Managing Director of North Property Group, says of the results “Once again the Leeds property market has come out on top. We’re thrilled that the city’s housing and rental markets are doing so well. It means our clients will continue to get the best yields from their investments.
“The Leeds property market is experiencing truly golden moment and we encourage our property investors to take advantage of it. North Property Group is currently involved in numerous Leeds developments such as Green Quarter, Northgate House and Pearl Chambers. All of which will bring the best in city-centre living to Leeds.”
So if you’re a buy-to-let investor interested in property in Leeds, click here for our guide to property investment in Leeds– or anywhere else in the north of England – get in touch with North Property Group today.