Leeds Property Investment Guide
Leeds is undoubtedly one of the most famous cities in the UK, known for its unique blend of history and modernity. As a result, it is a thriving business hub, catering to a wide range of industries, including the arts and live entertainment, while also neighbouring some of England’s most stunning natural landscapes. Considered Yorkshire's ‘economic capital’, Leeds has seen large amounts of regeneration in the last two decades.
There is a range of property investment opportunities in Leeds for you to consider. For example, with a student population of over 200,000, there are a variety of multi-bedroom properties in popular areas such as Headingley, Hyde Park, and Woodhouse that promise an excellent return on investment. However, the most sought-after properties in Leeds are in areas such as Bramhope.
This guide will explore how extensive regeneration projects within Leeds City Centre have created the perfect opportunity for property investors.
City Centre's average property price of £164,711
Headlingey average property price of £263,334
Bramhope average property price of £573,922
Leeds City Centre.
Various residential properties are located within Leeds City Centre, the “fourth largest built-up area by population” in the UK. Furthermore, Leeds’ population is increasing year on year - at a quicker rate than the population of London. As such, it's easy to understand why so many investors are on the lookout for a property in the city.
The city is also undergoing significant regeneration, which will no doubt cause the property demand to increase tenfold. For example, they are currently planning on doubling the size of the city centre, through a project known as South Bank Leeds. This project aims to make better use of land south of the River Aire. According to the Yorkshire Post, “around 4,000 jobs and 1,925 homes could be created under new plans for Leeds South Bank” thanks to this £500 million investment. The project will also create new leisure spaces, and a luxury hotel with a sky bar, which is sure to drive tourism in the area.
In 2021, Leeds became the ‘home’ of Channel 4, which will widen participation in the film and TV industry, providing space for those living outside of London to contribute and pursue rewarding careers. Moving into 2023, a large campaign is working to promote Leeds
Headingley.
Properties in Headingley along with other student areas such as Hyde Park and Woodhouse are mixed with strong home buyers and property investor demand, especially as the university continues to expand year after year. In addition to growing a student populace, strong transport links are also making it a popular spot for young professionals or those getting ready to start a family.
A wide range of properties is available in Headingley, from traditional two-up two-down terraced homes with a real, historic edge to modern flats.
Regeneration and plans that are ongoing or in the pipeline.
Southbank Leeds - £500m development to double the size of the city centre. According to various reports, this is the largest regeneration plan in Europe, set to bring many positive changes to the city, whether that be through providing new housing or the creation of jobs and opportunities.
New Briggate High Street Heritage Action Zone - £1.3 million dedicated to “repair and improvement work to buildings and public spaces.”
Arena Point Regeneration - The disused arena point offices will be demolished and replaced with a 43-story high tower block, fit to house upwards of 700 students in this £95 million development.
Two new hospitals - Thanks to a £450 million investment, Leeds will soon be home to two new hospitals.
Property Prices and Growth
The overall price growth for the city of Leeds currently sits at an impressive 9.8% for 2022, a figure that is gradually improving each year. This means, unlike other regions, the Leeds property market has been able to better navigate through the storm of the COVID-19 pandemic.
Due to its unprecedented growth over the past few years, it's clear that property prices will only continue to rise. A report from JLL stated that by 2026, house prices in the city will increase by 13.5%. This is higher than figures for other, competing areas such as Manchester, making Leeds a great location for those property investors seeking solid rental profits and capital growth.
Rental Market and Demand.
Student Sector:
The five universities within Leeds mean that it is home to a large student population. In fact, with around 200,000 students entering the city each year, they make up one of the biggest student populations in the UK. This means that there is a regular, reliable demand for student and young professional-styled accommodation, particularly as many of the universities have planned expansions underway. Regeneration projects in the area, such as the Arena Point regeneration, mean that there are plenty of property investments for those looking to cater to the student populace. Furthermore, students in Leeds tend to pay higher than the national average in rent given the local property demand.
Serviced Accommodation Sector:
Leeds remains one of the UK’s most popular cities, drawing in an average of 29 million visitors each year. As a result, there are also many opportunities here when it comes to providing serviced accommodation, such as properties that provide those looking for short-term accommodation with a comfortable, homely place to stay. This could include tourists or businessmen and women who work in the city but live elsewhere. Prices for serviced accommodation in Leeds start at around £50 per night but quickly climb into the hundreds depending on quality and location.
Overview:
Leeds has always been a desired location when it comes to property investment, due to the fact that there has always been a high interest in the area from the educational, business, and tourism sectors being on the doorstep of Yorkshire Dales National Park. After all, not only is the city a business and educational hotspot, but it also draws in countless tourists while being surrounded by stunning scenery and rich history. To put it simply, there are many people looking to live there. As property prices and rental prices grow, Leeds proves to be a great opportunity for buy-to-let landlords, particularly those interested in catering to students or serviced accommodation.