Leeds is one of the fastest-growing cities and the UK and a hot-spot for property investment. Here are 5 reasons why you should consider making a property investment in Leeds over the next year.
1. Leeds’ growing population and rental demand is creating many property investment opportunities
Leeds is currently experiencing population growth at a rate seven times faster than London. This means that in 10 years the city is expected to have 39,000 more residents than it does today.
With a growing population comes growing demand for housing. Leeds housing supply significantly lags behind this demand: Leeds Council has stated that at least 4,375 new residences are needed per year, but only 2,232 are currently under construction.
This creates great opportunities for property investors. Leeds consistently ranks as one of the best forecasts for property price and rental growth in the UK. Over the previous decade, capital growth in Leeds was 35.6%. It is forecast to be 17.1% between 2019 and 2023; the highest of any regional city in the UK.
2. Increasingly strong economy
With 120,000 business generating a total GVA of more than £60 billion, Leeds is the largest regional economy outside London. Leeds is the largest contributor to the UK economy, and is larger than that of many European countries.
Many large businesses are opening offices in Leeds and employing an increasingly skilled workforce. It is also home to many of the UK’s leading professional service and technology hubs outside of London. Just some of the major organisations that have a presence in the city are Channel 4, Sky, and HMRC.
The future of the Leeds economy looks just as promising. Over the next decade, the city’s economy is set to grow by 25%, with finance and business services accounting for 38% of the total output. This huge growth has helped change the economic geography of the UK and make Leeds the largest financial centre in Britain outside of London.
3. Regeneration and investment
Leeds continues to undergo major transformations. There are many huge regeneration projects currently underway in Leeds, bringing new investment opportunities to the city.
The South Bank project will transform Leeds, doubling the size of the city centre as well as its economic impact. It will turn the South Bank area into a global destination for investment, sustainable living, learning, culture, creativity and leisure. Once complete, the South Bank will bring 35,000 new jobs, 8,000 homes and a new international commercial district to Leeds.
Another significant project is SOYO. Once complete, this £300 million development will be the heart of the Leeds cultural scene. This extended cultural quarter beings with it almost 150,000 sq ft of office, retail, and leisure space, as well as 700 residential units. Thanks to SOYO’s numerous trendy bars, restaurants and outdoor spaces, the area is likely to become one of the most desirable in Leeds.
4. Excellent connectivity
HS2 will bring with it a new £500 million railway station in 2032, which will connect the city to London in less than 90 minutes. Northern Powerhouse Rail will better connect Leeds with other major northern cities.
But that’s not to say Leeds isn’t already incredibly well-connected. The nearby Leeds Bradford airport links the city to other international hubs, while rail routes and excellent road networks efficiently transport people between Leeds and the rest of the UK.
5. Property investment is thriving due to Leeds’ high student population
Leeds is one of the UKs top student cities. It is home to the largest concentration of higher education institutions outside of London, and produces almost 40,000 skilled graduates each year. The four main universities in the city are the University of Leeds, Leeds Beckett University, Leeds Trinity University, and Leeds Arts University.
It’s not only the students that require housing; so do graduates. With a 30% graduate retention rate, many of the students here choose to stay in Leeds after graduation. This has led to an incredibly healthy rental market and some of the highest rental increases in the country.