Property Investment Company Sheffield
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Sheffield is a city known for its industrial mastery and thriving university scene, along with a more recent boom in the business sector.
The local economy is currently worth circa £7bn per year and the Sheffield City Region (SCR) aim to continue this growth with a 20 year economic plan put in place in 2021, which aims to add an extra £7.6bn GVA to the local economy.
The city is home to two of the UK’s leading higher education institutions, the University of Sheffield, which is part of the Russell Group of universities, and Sheffield Hallam University.
In total, the city houses around 63,000 students and, positively for the city’s growth, more than 25% of graduates choose to stay permanently after they complete their degrees.
As a property investment company Sheffield has everything we look for in a city: growth, business, culture, tenants, transport, jobs and more. It’s a brilliant choice for any investor.
Property investment in Sheffield - why?
There are three excellent reasons to consider Sheffield.
First, a growing population of young professionals means there are many ideal tenants in the city.
Second, there will be high demand for housing in the future as Sheffield’s economic plan aims for a growth in population of 70,000 before 2025.
And third, Sheffield will have a stop on the HS2 train line. This will reduce travel time to the South, but it will also improve routes between the cities of the Northern Powerhouse: Sheffield to Leeds or Manchester will take just 30 minutes. This will stimulate the regional economies and drive property demand.
Sheffield Property Market Data
The graph on the left shows a large variance in property price increases across central Sheffield over the past 5 years.
We see the biggest increase in the S10 postcode area, which is densely populated with students across suburbs like Broomhill, Broomhall, and Crookes.
Conversely, the S5 postcode area, covering a large portion at the northern edge of the city, has performed the worst – with just a 15% increase in average prices.
The graph on the left shows rental yields differ quite substantially across Sheffield.
The city-centre postcode, S1, achieves the best rental yield due to the high demand for city-centre living from Sheffield’s population of students and young professionals.
This is followed by three postcodes within touching distance of the centre: S2, S3, and S9.
Rental yields tend to get worse on the southern reaches of the city, with S7, S8 and S11 achieving yields between 2.9% to 3.6%.
The graph on the left shows the change in property prices across Sheffield as a whole since 1995.
It shows that since the global recession of 2009, property prices have steadily increased in Sheffield. In fact, since January 2010, prices have increased by 42.3%.
The data is further evidence of the city’s progress in the past decade, with more expected over the coming years.
The graph on the left shows the projected change in population for Sheffield up till 2043.
Research from the Office for National Statistics suggests Sheffield’s population will swell to just shy of 650,000 over the next 20 to 25 years.
As a result, there will be a growing number of people looking for property in the city. Sheffield property investors stand to benefit from the increase this will have on demand for high-quality, central accommodation.
Property Value Forecast
Best Areas For Property Investment In Sheffield
In our opinion, there are three exciting, high potential areas for consideration when looking into property investment in Sheffield, which we have picked out below.
With a population of 30,000 made up largely of students and young professionals, Sheffield’s city centre is probably the best place to consider for investment. Plus, as shown in the graphs above, the city centre postcode, S1, achieves the strongest average yields in the region. Properties in the centre are a mix of new-build blocks and period conversions, offering a variety of options for investors and renters.
East Sheffield is one of the most affordable parts of the city, but it offers excellent rental yields as a result.
See our yield map above and look out for the S2 postcode. Located between Sheffield and Rotherham, the east plays host to suburbs such as Brightside, Burngreave, Parson Cross, and Attercliffe.
South East Sheffield
South East Sheffield has a large variety of properties, but it is particularly popular with family-sized buy-to-lets. The average price ranges between £170,000 – £200,000, and investors can achieve a comfortable average yield between 4 – 5%. One benefit of this area is the transport, with many suburbs linked together by the tram network. The South East of Sheffield has two up-and-coming areas where interest is building, Heeley and Meersbrook, but for more good value investors may also want to consider Frecheville, Hackenthorpe and Beighton.
Types of Property Investment in Sheffield
Centrally located, a thriving population and strong yields help build a very strong case for buy to let in Sheffield, which is why the city is on our radar.
Plus, the supply of residential properties simply cannot keep up with the demand caused by ongoing regeneration projects and a buoyant job market. This makes any upcoming Sheffield buy to let projects very attractive opportunities for property investors.
Around 60,000 students are enrolled in the two universities, meaning one in ten residents in Sheffield is a student - resulting in high demand for accommodation. The University of Sheffield has 28,000 students but it can only provide 6,000 with a room in their halls of residence.
This undersupply makes Sheffield a potentially lucrative opportunity for investors, given the requirement for private developers to fill the gap.
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 Sheffield a good place to invest in property?
Yes, Sheffield is an exciting, up-and-coming city which offers plenty of benefits for property investment. Keep in mind that Sheffield’s property market recovered slower after the 2008 financial crash, meaning there is greater capacity for house price growth relative to incomes even when interest rates rise.
This makes Sheffield a great place to get in early and enjoy good capital growth over the next 5 to 10 years.
02. What price can I expect to pay for a property in Sheffield?
According to Zoopla, the average price paid for a property in Sheffield over the last 12 months was £207,318.
03. Have house prices increased in Sheffield?
Yes, house prices in Sheffield have increased consistently over the past decade. Data from HM Land Registry shows a 42.3% increase in average property prices since 2010.
04. Can I achieve good rental yields in Sheffield?
Yes, it’s possible to achieve very strong rental yields from buy to let property in Sheffield due to the low purchase price of many properties.
As our rental yield map shows (see further up this page), the best yields are typically achieved in the most central areas and they range between 6-7%.
05. Will HS2 be in Sheffield?
The HS2 train line will call at Sheffield and it will reduce the train journey to London by 40 minutes. Furthermore, it’s estimated the arrival of HS2 will generate an extra £4bn for Sheffield’s local economy.
06. Why choose Track Capital?
As a property investment company in Sheffield 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.
Related Blog Posts
The UK last entered recession in the second quarter of 2008. House prices started rapidly decreasing, with the average house price hitting a rock-bottom low
Over the past decade, the number of young adults embarking on higher education journeys has steadily risen. For the academic year 2019/20, over 1.7 million
All information accurate as of September 2021