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 of the capital according to Leeds City Council. Leeds is the largest contributor to UK GDP in the Northern Powerhouse boasting the highest private sector jobs growth in the UK. Leeds’ strengths provide the ideal basis for sustained growth.
Leeds is the focus of the regional primary road network and it is also a principal hub of the national motorway network. It is connected to the national road network via the A1(M) motorway, M1 motorway and M62 motorway.
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 Investments
Leeds is quickly making a name for itself as one of the UK’s top buy-to-let investment hotspots. Demand for residential property is high with 90,000 homes needed by 2021 and only circa 60,000 in the pipeline. High tenant demand from young professionals, young families and university students make it very appealing to property investors. The attractive property prices also make it a good place for rental prices and 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. The potential for capital growth is very promising and JLL has forecast property value growth of 13.7% over the next 5 years.
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, making it one of the UK’s largest. In short, the city is very lucrative for student accommodation investment. For example, Hume House in the city centre will provide 752 new bedrooms for students when it opens. Simultaneously, it will become one of the tallest buildings in the UK. This level of investment in the Leeds student accommodation market demonstrates the demand.
Popular Areas
If you are unfamiliar with Leeds and you’re looking to invest in the city, it is a good idea to understand some of the potential purchase areas. We have highlighted the three main areas we consider the best for property investment in Leeds.
Leeds City Centre
Leeds city centre is one of the main areas to be consider when looking to invest here. There is a high proportion of ideal tenants as city centre living has great appeal to students and young professionals. This makes it one of the best parts of Leeds to consider when you want a good calibre of tenants, strong yields and great capital growth potential. According the propertydata.co.uk, the LS1 postcode has an average yield of 5.9% and average price of £190,381.
Headingley
This area is very popular for investors looking to capitalise on purchasing buy-to-let properties suited for student lets. HMO’s became very popular here but with Article 4 being introduced to this and many areas of Leeds, the surge of HMO’s was curbed. This area has also become very popular with families and young professionals because it provides great accessibility 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
These areas consist predominantly of terraced houses and are found to the west of Leeds. The house prices tend to be lower here so it can be quite a popular area with investors. If you are investing here, just bear in mind that in certain parts of Beeston they have brought in ‘selective licensing’ with comes with a financial cost as well as having to meet certain standards with your rental property. Propertydata.co.uk reports that average yields range from 4.8% - 6% and prices £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. Feel free to get in touch and ask us about any of these areas 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