- Across the UK, rental demand has seen the strongest growth in 13 years, echoing the gap between supply and demand in Leeds for property investments too.
- Leeds properties are being sold in less than 24 hours to both owner-occupiers and people looking for a Leeds property investment.
- Zoopla predicts the upward trend for rental demand and therefore rental prices is set to continue.
With tenants increasingly returning to city centres, Leeds has been highlighted as a key location for rental growth. In a new report published by Zoopla, cities such as Leeds and Manchester were emphasised for their impressive tenant demand following the pandemic.
City centre demand
The findings showed how the city centre bounce backs were in full swing and that demand for city centre living by tenants has doubled. Across the UK, rental demand has seen the strongest growth in 13 years, echoing the gap between supply and demand in Leeds for property investments too.
In fact, demand for rental properties in Leeds has increased by 60% since the beginning of the year. Driven by such high demand, quarter-on-quarter rental growth reached 3.6% in Leeds in Q3.
Already being a city that is already hugely popular with tenants and for investment properties alike, the increased demand will only put further pressure on the market.
Low property prices but high rental yields
The report also discovered that cities with the highest rental demand are also the most affordable. This is certainly true for Leeds, where the average rent is much lower than the UK’s average – but which results in higher proportional yields for investors.
When buying investment properties in Leeds, buy to let landlords can also benefit from much lower house prices than in the UK as a whole. This is one of the factors that has made Leeds property investments particularly popular for first-time investors.
A fast-moving market
As well as increased rents, growing tenant demand is also leading to a fast-moving market. The Zoopla report found that it took just 15 days for a property to be rented out in September of this year.
But this isn’t only the case for the rental market. It has also been reported that Leeds properties are being sold in less than 24 hours to both owner-occupiers and people looking for a Leeds property investment.
The change of tenant requirements following the pandemic is leading to a particular spike in demand in the higher rental price brackets. Tenants are now looking for larger properties with more space and good access to outdoor areas.
But this isn’t a post-pandemic blip; Zoopla predicts the upward trend for rental demand and therefore rental prices is set to continue.
They say: “There is more leeway for stronger rental growth in areas of the country where rents are relatively more affordable, suggesting that rents could rise above earnings outside the south of England, supporting rental growth across the UK excluding London at 6% in 2021 and 4.5% in 2022.”
Get in touch
Take advantage of the booming rental demand and find out how to make a Leeds property investment or where to buy an investment property elsewhere in the UK. Contact North Property Group today to learn more.
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