Leeds is the third largest city in the UK and the ‘capital’ of West Yorkshire. It has four institutes of higher education including the world-class University of Leeds and is consistently ranked as one of the best UK cities to be a student making it the perfect location for a student property investment. With a student population of almost 32,000 and more new undergraduates arriving each year, coupled with the relatively low cost of housing and attractive yields, Leeds is a great place to invest in student property.
Investing in student property has many benefits. The UK’s student population is continuously increasing so you are almost guaranteed constant tenancies. There is also the peace of mind knowing rents will always be paid: in order to take out a tenancy students are required to provide a guarantor, which ensures rents are paid on time and in full.
Leeds is a brilliant city for a student property investment. The average property price in Leeds is just £196,483, though demand has caused this to increase in some student areas. Yields range from between 5 – 10% across the city. House prices have grown by almost 4% over the past 12 months (double the UK average). Leeds also boasts one of the fastest growing economies and rental markets in the UK.
Students Stay After Graduation
Many of Leeds’ graduates decide to stay in the city after they leave university. Nearly 30% of graduates stay in Leeds and take advantage of its thriving economy. As well as career opportunities and a great standard of living. Graduates prefer to continue living with their university friends in shared accommodation, meaning your tenants won’t necessarily leave just because they’ve graduated.
High Student Demand
The Leeds areas with the highest student demand are Headingley, and Woodhouse, Burley and Hyde Park. Headingley has traditionally been the centre of Leeds’ student population, but recent years have seen many students move to Woodhouse, Burley and Hyde Park.
Both districts offer good investment opportunities in the forms of house shares and HMOs. The average house price in Headingley is £216,739 with expected yields as high as 7.4%. In Woodhouse, Burley and Hyde Park the average house price is slightly higher at £220,082, but investors can expect yields of up to a massive 10%.
There are some great new developments in Leeds which will create high demand from student renters. Pearl Chambers is located in the centre of Leeds in the exact location where many international students want to live. This means achieved here can be fantastic rents. Which creates great yields of up to 7.4%. Property prices at Pearl Chambers start at just £159,500.
Centenary House is another top development for student tenancies. Situated in the trendy Northern Quarter of Leeds this Grade II-listed conversion is close to many amenities popular with students, including the vibrant nightlife of Merrion Street, the Victoria Gate shopping centre and Leeds railway station. Property at Centenary House starts at just £127,000 with expected yields a huge 7.8%.
Work on Pearl Chambers has finished and Centenary House is due to complete in 2020. Both Pearl Chambers and Centenary House are available for property investment now.