Leeds is proving itself a key player in the Northern Powerhouse by showing strong growth in the investment property market. JLL’s New Housing Paradigm report is now forecasting property investment growth in the city centre to reach 3.5% during 2018 and 3.7% year-on-year for the next five years. This is the second highest level of property investment growth in the Northern Powerhouse, following only Manchester.
More and more people are looking to northern cities to work and invest. Leeds will directly benefit from the major infrastructure investments as part of the Northern Powerhouse project. This is expected to lead to improved inter-city transport links and increased job opportunities.
People looking for more affordable housing and a better quality of life are increasingly moving from London to the North. Investors are turning away from the capital’s high prices, stagnating housing market and slowing growth towards the potential of the northern markets.
Booming Rental Market aids Leeds property investment growth
All of these people moving north need somewhere suitable to live. An increasing number of young professionals and wealthy students desire high-quality, city centre accommodation. Furthermore, they are willing to pay for it which will increase Leeds property investment growth.
To fulfil this demand in Leeds there are 3,500 buy-to-rent properties and 2,000 private sale properties due for completion in the near-future. It is likely Leeds will follow Manchester in proving extremely successful with these developments.
It is predicted that this growing demand will lead to an increase in rents of 3.5% during 2018. This could improve by 3.5% per annum over the following five years.
Leeds is the hidden jewel in the Northern Powerhouse and is worth investors considering when looking to the growing northern market. For more information on the area check out our Leeds properties area or click here for our guide to property investments in Leeds.