Property Investment in Bradford

Based in West Yorkshire, Bradford is a city on the rise. The city is part of the wider metropolitan borough of the City of Bradford, which includes several local towns and villages that make up a population of nearly 540,000 - making it the seventh most populous district in England.

For many years, property investment in Bradford has been minimal. Especially in comparison to the levels of investment in the neighbouring city of Leeds. However, investors are now starting to look further afield in search of better deals and stronger returns. And Bradford, as we’ll see, ticks many boxes for a prospective buyer.

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Overview

Like much of the north, Bradford had a key role to play in the UK’s booming textile industry throughout the 19th and early 20th centuries.

Traditionally, it had been a small town with only a few thousand residents. But it began to grow rapidly as the town became internationally recognised for the quality of its wool products. More textile mills followed, and the population continued to swell.

Quarrying, mining and ironwork were also major employers. All of which contributed to great economic growth for the city, albeit at the disadvantage of workers, who endured poor and dirty living conditions.

Then, when Britain’s grip over these industries began to loosen through the 20th century, the city’s fortunes also took a turn – the effects of which are still felt in many parts of Bradford today.

However, there are also clear signs of adaptation and improvement.

The city has received an £80m grant from the UK government’s Transforming Cities Fund. Much of this will be spent on updating the city centre, introducing pedestrianised zones, better public transport, and a wider range of shopping, eating and leisure facilities.

This is further backed by an economic strategy that intends to make Bradford the UK’s fastest-growing economy within the next decade. The strategy identifies a number of ways to do this, including the upskilling of residents, improving transport infrastructure, and leveraging the city’s unique assets (such as mass regeneration).

Already, though, the city has a thriving economy worth £11.6bn. This makes it the 10th largest in England after growing by 16% between 2014 and 2019. This is helped by a number of major employers with headquarters in the city, such as Morrisons, Yorkshire Water, and Yorkshire Building Society.

In short, Bradford appears to be on the rise, yet property remains relatively low-cost relative to the rest of the UK. As we’ll discuss in the next section, this makes for a juicy hotspot for early investors.

Why is Bradford a good choice for property investors?

Over the last year, the average price of a property in Bradford was just shy of £150,000 according to data from Rightmove (£149,455 as of writing in June 2022, this may have changed).

This puts the cost of purchase well below many of its regional neighbours. Consider, for example, the average price of a property in Leeds (which is just 13 kilometres eastwards) was £237,607 over the same time period.

Plus, with a thriving job market that’s helped close proximity to Leeds (making it very easy for workers to commute between the two cities), rental yields are strong. Industry data suggests the region generates average yields between 6.5% to 8.5% for studio, one and two-bed properties.

In addition to the regeneration and economic plans discussed above, the city’s property market performance makes it an excellent choice for investors looking to diversify their portfolios. It’s a low-cost, low-risk region that is highly likely to generate excellent long-term returns through both rental income and capital appreciation.

If you’re interested in property investment in Bradford, get in touch with our team to discuss your options.

Types of Property Investment

Buy To Let In Bradford

In our opinion, any investor interested in Bradford should be looking to purchase a buy to let. It may require more work than flipping a property (although this is debatable if you use a management company), but the long-term benefits far outweigh the quick profit made by buying, renovating and selling.

After all, with such strong rental yields in Bradford (see above), a buy to let should run profitably. This allows the investor to build equity (useful for expanding a portfolio further in the future), boost monthly income, and benefit from the natural long-term growth in property value.

Student Property In Bradford

Alternatively, buyers could consider investing in student accommodation in Bradford. There are over 10,000 students in the city, thanks to the University of Bradford which offers a wide variety of higher education courses and degrees.

However, we would lean away from student accommodation in Bradford. The likes of Leeds, Sheffield, Nottingham, and Manchester are all nearby, with much higher student numbers and plenty of PBSA schemes in progress. Bradford, in comparison, does not offer as strong a case for student property investment.