Property Investment Company In Leeds
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In the last five years, Leeds has seen an average increase in rental value of 17.82% - Zoopla 2020
Property Investment In Leeds
With an economy worth £66.5bn per annum, Leeds is growing at a remarkable rate. The local government has indicated that over the last 10 years employment has been boosted by the city’s economic growth of circa 40%. The Leeds City Region is the UK’s biggest economy and population centre outside the capital according to the local council.
Plus, the city is the largest contributor to UK GDP in the Northern Powerhouse, with it boasting the highest growth in private sector jobs in the UK.
And it’s well connected too. Leeds is the focus of the region’s primary road network and it is also a principal hub of the national motorway system, linking up with the rest of the country via the A1(M), M1 and M62 motorways.
These strengths provide the ideal basis for sustained growth in the future, making Leeds an excellent long-term choice for property investors.
Why invest here?
At the centre of the northern powerhouse, Leeds has great fundamentals for property investment. There is high demand from buyers and renters which massively outweighs supply. However, the affordable and attractive buy-to-let prices make it a popular city for investors, with good yields being very realistic. Leeds is beginning to experience the start of good capital and rental growth with this forecasted to continue into the future making it an exciting opportunity to get in early and capitalise on.
There is plenty of regeneration taking place too, such as the South Bank project, which will only continue to stimulate the property market and economy. South Bank is a huge project which is set to double the size of Leeds city centre. It will provide over 35,000 jobs along with over 8,000 homes and it will be one of the largest city centre regeneration initiatives in Europe. South Bank is also the proposed site for a new HS2 station, better connecting Leeds to other leading cities throughout the UK.
Types of Property Investment in Leeds
Buy-to-let properties in Leeds have quickly become some of the UK’s most sought-after.
Demand for residential property from young professionals, families and students is high, with 90,000 homes needed by 2021 but only 60,000 in the pipeline.
Totally Money’s buy-to-let yield map had the LS2 postcode providing an average 7.92% yield with a median asking price of £125,000 - which represent ideal figures for investors.
Leeds is well known for its student populous, with three thriving universities - University of Leeds, Leeds Beckett, and Leeds Trinity.
The student population is over 60,000, one of the largest in the UK, with many of those coming from overseas.
As such, Leeds' student accommodation is a strong investment choice, with the city almost guaranteeing a constant influx of new tenants each year.
Popular Areas
If you are unfamiliar with Leeds but you’re looking to invest here, it is a good idea to understand more about the different areas of the city. To help, we have highlighted three leading areas we consider the best for property investment in Leeds.
Leeds City Centre
The city centre is the main area to consider when looking to invest in Leeds. Properties in this area benefit from high tenant demand as city centre living appeals to both students and young professionals.
In addition, city centre properties usually generate strong yields and capital growth. For example, according to propertydata.co.uk, the LS1 postcode has an average yield of 5.9% and average price of £190,381.
Headingley
Headingley has a reputation as an area with a large student population. As such, it attracts investors looking to capitalise on purchasing buy-to-let properties suited for student lets.
This area has also become very popular with families and young professionals because it provides easy access to central Leeds and the rest of the UK via its excellent transport links.
Propertydata.co.uk has Headingley’s LS6 postcode providing an average yield of 7% and average purchase price of £183,160.
Armley, Hunslet and Beeston
Found to the west of Leeds, these areas are dominated by terraced housing. House prices tend to be lower, so it can be quite a popular region with investors.
If you are investing here, just bear in mind that certain parts of Beeston have ‘selective licensing’, which comes with a financial cost as well as having to meet certain standards with a rental property.
Propertydata.co.uk reports that average yields range from 4.8% – 6% and prices between £120,616 – £152,688.
Other areas
Other areas of Leeds you might want to consider are Woodhouse, Burley, Hyde Park, Pudsey, Morley, Roundhay, Moortown, Alwoodley, Adel, Horsfort, Crossgates and Garforth.
Each has its own pros and cons, so feel free to get in touch and ask us about them to learn more.
Future Growth in Leeds
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice please do not hesitate to contact us today on +44(0)203 627 3987 or via [email protected]
In our opinion, it is slightly behind Manchester and Liverpool but definitely demonstrates the great fundamentals to be considered as a great place to invest if you are looking for the next major hotspot to get into early.
According to Zoopla (June 2020), the average price paid for a property in Leeds is £213,174.
Zoopla (June 2020) reports that Leeds house prices have increased by £34,027 over the last 5 years. Hometrack’s latest report shows house prices have increased 3.1% between April 2019 – April 2020.
Leeds still has attractive property prices meaning that yields are good. When looking at propertydata.co.uk, the overall average yield taking into account the whole of Leeds is 4.63% and in the LS4 postcode investors can achieve an average yield of 8.6%.
The HS2 is due to reach Leeds between 2035 and 2040. It will cut the travel time from Leeds to London by circa 50 minutes meaning it will take only 81 minutes. HS2 will support development around the South Bank in Leeds, which will double the size of Leeds City Centre. This development and project will provide over 35,000 jobs, over 8,000 new homes and educational facilities for over 10,000 students.
“I am a big fan of Leeds, although I have a slightly biased opinion because it is a location that I have some of my personal property investments. There is great tenant demand in the city and I like the prices that enable strong yields. Plus, there are solid fundamentals which make it great for future capital growth.” – Tobi Mancuso, Director