Property Investment Company Leeds
Leeds has been highlighted as one of the most exciting property markets in the UK. It has been tipped as the standout market to keep an eye on for rental growth, second only to Manchester, making property investment in Leeds a wise choice for anyone with the interest, capital and means.
Read on to find out more about Leeds property investment, including past and future market performance, a list of the best spots for buy to let in Leeds, and an overview of the city.
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Overview
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 buyers. We are a property investment company in Leeds that can help you find and purchase a high-potential property in the city.
Property investment in Leeds - why?
At the centre of the northern powerhouse, Leeds has all of the fundamentals for property investment.
First, high demand from buyers and renters massively outstrips supply. As a result, Leeds is beginning to experience good capital and rental growth, which is forecast to continue and makes the city an exciting opportunity for those who buy early.
Second, the city’s affordable buy-to-let prices make it a popular choice for investors as strong yields are highly realistic.
Furthermore, there are plenty of regeneration schemes across Leeds, such as the South Bank project. South Bank, one of Europe’s largest urban regeneration initiatives, will double the size of Leeds city centre, provide 35,000 jobs, and deliver 8,000 new homes.
The city’s regeneration will only continue to stimulate the property market and local economy.
Leeds Property Market Data
Over the past five years, data shows that property prices across Leeds have increased by an average of 21%.
However, some areas have performed better than others – as shown in the chart adjacent. Postcodes LS7 (covering Chapel Allerton and Chapeltown), LS10 (covering Hunslet and Middleton), and LS11 (covering Beeston and Holbeck) have seen the largest increases.
Nonetheless, this doesn’t necessarily correlate with rental performance. The strongest rental yields in Leeds are typically in the central areas, with LS4 (covering Burley) doing particularly well.
LS2 (city centre) and LS6 (covering Headingley) are also top performers in terms of yield, with the latter helped by the fact it’s a very popular area for students.
Please note we unfortunately cannot source any yield data for a few of the postcodes on the graph opposite. The affected postcodes are marked with a 0.0% yield.
The Office for National Statistics predicts a huge growth of almost 200,000 people in the population of West Yorkshire between 2020 and 2043.
As the region’s largest city, many of these people will either be born in or move to Leeds – the city is forecast to see a growth of 50,000 over the same time frame.
This comes as no surprise. The rich history, Victorian-era buildings, growing economy, developing infrastructure, and lively cultural scene combine to make the city very appealing to every manner of property seeker.
Property Value Forecast
Rental Price Forecast
Local Economy
Types of Property Investment in Leeds
Leeds buy-to-let properties 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, below 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, as is shown in the property market data section above.
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.
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.
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.
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 +44 203 627 3987 or via [email protected].
01. Is Leeds a good place to invest in property?
In our opinion, Leeds is an excellent place to invest in property, although as it stands there are equally as good (if not better) opportunities to be found in nearby Manchester and Liverpool. Nonetheless, if you’re looking to beat the curve and get into the next major property hotspot early, then Leeds definitely has the fundamentals any investor should be looking for.
02. What price can I expect to pay for a property in Leeds?
According to Zoopla, the average price paid for a property in Leeds over the last 12 months is £250,551. However, the average price paid for a flat in the past 12 months is £154,526.
03. Have house prices increased in Leeds?
Yes, house prices in Leeds have increased. Data from HM Land Registry shows that between January 2015 and January 2020, the average price paid for a property in Leeds increased by 26.6%. This upwards trend is expected to continue into the 2020’s.
04. Is Leeds a good place to invest for yields?
Yes, property investors can achieve very strong rental yields from Leeds buy-to-let property as the cost buying property in the city is still relatively low, yet there is high demand for accommodation from renters. To see yield performance at a postcode level across Leeds, take a look at the graph in the market performance section on this page.
05. Will HS2 be in Leeds?
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 to travel between the two cities. 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.
06. What do you think about Leeds?
“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 at Track Capital
Why work with us?
As a property investment company in Leeds and elsewhere across the UK, we pride ourselves on finding high-potential, well-priced opportunities in a clear, ethical manner for our clients. In addition:
- We do not charge any sourcing fees.
- We’re signed up to the Property Ombudsman Scheme to protect our clients.
- We conduct extensive due diligence on all investment opportunities.
- We provide after-sales support.
- Due to our close relationships with property developers, often we can get exclusive discounts or bonuses (like a free furniture pack)
- We’ll help you with any extra steps in your journey, whether that’s finding a mortgage provider, instructing a property management company, or something else.
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All information accurate as of September 2021