Property Investment Company In 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 10 year ‘Economic Plan’, which was put in place in 2015.
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.
Why invest in Sheffield property?
There are three particularly good reasons to consider Sheffield.
First, a growing population of young professionals means there is a large number of 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 travel times between the cities of the Northern Powerhouse: Sheffield to Leeds/Manchester will be just 30 minutes. This will stimulate the regional economies and drive property demand.
Types of Investments
Centrally located, a thriving population and 6.85% & 8.16% yields offered by S1 and S2 postcodes (respectively) help build a very strong case for buy-to-let investment in Sheffield, which is why the city is on our radar.
Plus, demand is strong due to regeneration projects and a buoyant job market and supply can’t keep up. As such, Zoopla recorded a 20.46% increase in house prices over the past 5 years (Zoopla May 2020).
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 step in and offer high-quality housing options.
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 and an average price paid for a property sitting at £120,598 (Zoopla May 2020), the city centre is probably the best place to consider in Sheffield. Plus, the city centre postcode, S1, has a strong average average yield of 6.85%. There is a good mix of new-builds blocks and period conversions offering good variety for investors and renters.
This is cheapest part of the city, so you can find excellent yields here. Part of this area holds the S2 postcode which Totally Money highlights as having the possibility of hitting 8.16% yields. Located between the city and Rotherham it houses suburbs such as Brightside, Burngreave, Parson Cross and Attercliffe. Just be wary that the cheaper prices sometimes means these areas may not offer the same quality of tenant as the city centre. However, this is something that investors may be able to offset against the high yields.
South East Sheffield
This area has lots of varied property types and is popular with family buy-to-lets. The average price can range from £170,000-£200,000 and you can obtain a comfortable average yield between 4-5%. A good thing about this area is some of the locations benefit from Supertram links. The South East of Sheffield has two up and coming areas called Heeley and Meersbrook. You can also find one of the city’s largest parks, Graves Park. If you want good value properties you can look at Frecheville, Hackenthorpe and Beighton.
Future Growth in Sheffield
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]
Sheffield’s property market recovered slower after the 2008 financial crash meaning that there is greater capacity for house price growth relative to incomes even when interest rates rise. This makes it a great place to get in early and invest to receive good capital growth over the next 5 – 10 years.
According to Zoopla (May 2020), the average price paid for a property in Sheffield is £199,972.
House prices have increased by 20.46% in 5 years and Hometrack reports a 2.4% year on year growth from March 2019-2020.
Sheffield has an average yield of 4.26% (propertydata.co.uk) and the city centre S1 postcode has an attractive average yield of 7.2%.
The HS2 train line will call at Sheffield and will reduce the train journey to London by 40 minutes while also generating an estimated £4bn for the local economy.