Build to Rent Pushes Up Leeds Rental Prices

July 21, 2021

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Article Summary

Leeds

The build to rent sector is driving rental increases in northern cities, in particular Leeds, recent findings from Ascend Properties shows.

Their research looked at which cities had seen the biggest increase in rental market prices, and where the build to rent sector generated the biggest rental premiums compared with the regular buy to let market.

A big impact on rents

The build to rent sector has had a big impact on the Leeds buy to let market, with 6% growth on rents over the past year. The average monthly rent of build to rent investment properties in Leeds now sits at a strong £892. This is compared to an average monthly rent of £818 on the regular Leeds rental market.

Manchester also performed well. This other Northern Powerhouse city saw 3% annual rental growth and average build to rent rents of £923 per month compared to regular monthly rents of £846.

What tenants want

So what is it about build to rent properties that allow them to command these rental premiums? Often, they are in the most sought-after city centre locations where tenants want to live. They usually come with sought-after amenities, such as parking, outdoor spaces, co-working areas and fitness facilities.

This makes them excellent choices for investment properties in cities like Leeds, where more households than average live in the private rented sector (nearly 20% compared to the UK average of 18.1%).

Thanks to their popularity with both investors and tenants, there doesn’t look to be any slowdown in sight for the sector. The UK’s build to rent sector is predicted to be worth £146billion by 2025, with northern cities continuing to outperform those in the south.

What is property investment?

Put simply, property investment is property purchased with the intention of generating financial returns for its buyer. These returns could be in the form of rental income through buy-to-let properties, house price growth through the future sale of the property or both. Property investments can be owned by individuals or organisations and can be short, long or medium term.

Find out more

If you’d like to buy a Leeds property investment or would just like to see which property investment opportunities are currently available, contact North Property Group now.

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