Buy-to-Let Property Investment Hotspots in Leeds17-01-2024 | Yorkshire & Humber
Leeds lies in the heart of West Yorkshire, England, and stands as a testament to both historical charm and modern advancement. With its rich industrial past, Leeds has transformed into a hub of culture, education, and economic mastery, making it an increasingly attractive location for property investors. Let’s take a look at the best buy-to-let property investment hotspots in Leeds.
Why invest in Leeds
Leeds is ranked in the top 5 cities in England with the biggest population, holding a population of 785,000. According to Invest West Yorkshire, Leeds is known for having:
- Having a skilled workforce of 1.1 million people
- 7 universities
- 34,000 skilled graduates per year
- A regional economy of £60bn
- More scale-ups than any other area outside London
But, Leeds is not just a cultural and financial centre in the North of England; it’s also a promising landscape for property investment. The city has a robust economy, underpinned by its diverse sectors including finance, retail, and digital industries.
The city used to have an industrial focus, but this has changed and its economy now holds professions that provide many high-paid jobs. For example, within the banking and finance industry, Leeds is seen as second to the capital city, London.
Also, there are a few giant names with head offices situated in Leeds, such as Asda and Jet2. As you can imagine, this economic dynamism attracts a wide range of residents, from young professionals to families, fueling a strong demand for housing.
Regeneration projects in Leeds
The city is undergoing significant regeneration, with projects like the South Bank Leeds regeneration scheme, which aims to double the size of the city centre. Such projects are not only enhancing the city’s infrastructure and amenities but also boosting its appeal as an investment destination.
These developments indicate a forward-thinking approach to urban growth, promising a bright future for property investments. Let’s take a look at some of the regeneration projects in more detail.
Best known for being the largest indoor market in Europe, this iconic haven will be expanded with the addition of a shipping container-inspired outdoor street food space.
Leeds’ high street will be hosting new retail outlets, with Zara being moved into Topshop and Flannels taking over Debenhams.
Leeds Trinity University has opened up a campus at Treveylan Square, along with new student accommodation having been built. Also, Leeds Mathematics School, a specialist 6th form college, was opened in the latter part of 2023. It is situated in the heart of Leeds city centre and has just accepted its first cohort of students.
With 858,448 sq. ft of office space under construction in 2022, the officeland is going from strength to strength offering a vast amount of space for businesses. Also, with giants like Lloyds Banking Group and Arup situated in the waterfront locale, there are bound to be positive economic results.
This is the most important part for landlords looking to invest in buy-to-let properties in Leeds. In 2022, 747 new homes were added to the property market through five new residential developments.
Each development has created new neighbourhoods, including opportunities for shared ownership and built-to-rent properties. More about this later on!
Things to do in Leeds
Leeds is a city alive with hustle and bustle and offers an array of activities and attractions. From the historic Leeds Kirkgate Market to the lush Roundhay Park, the city caters to diverse interests. Cultural landmarks like the Leeds Art Gallery and the Royal Armouries Museum add to its charm, making it a lively and engaging place to invest in. But, there’s more.
Here’s a brief overview of more things to do in Leeds:
- Rodley Nature Reserve: Near to the River Aire, this nature reserve is a haven for wetland habitats.
- Kirkstall Abbey: This 900-year-old Cistercian monastery adds heritage and culture to Leeds. Enjoy days out here and educational tours.
- The Arcades: You won’t find any retail chains here, but only high-end fashion brands and boutiques.
- Harewood House: Boasting one of the finest art collections, Harewood House is a mansion that also holds the ruins of Harewood Castle.
- The Street Art Trail: Residents can enjoy a meander along the Street Art Trail, soaking in the art that lines the city walls.
- Roundhay Park: Host to a family of meerkats, this park stretches over 700 acres and allows for picnicking and long dog walks.
- Leeds Grand Theatre: For residents who have a keen interest in all things theatre, the Leeds Grand Theatre will be a massive plus.
- Thackray Museum of Medicine: For a family day out, this educational and immersive museum takes you on a journey through the development of medicine as we know it.
- Call Lane: For those students and young professionals looking for a great night out, Call Lane is the place to be.
Property market in Leeds
The property market in Leeds presents a landscape of opportunity for investors. The city’s housing market is characterised by a mix of traditional and modern properties, catering to a broad spectrum of preferences. With a steady increase in property values and a strong rental market, Leeds stands as a prudent choice for buy-to-let investments.
Rental yield in Leeds
Leeds is noteworthy for its attractive rental yields, particularly in certain postcodes. The demand for rental properties is fortified by the huge student population and young professionals.
This demand makes for healthy rental yields. Let’s take a quick look at some of these rental yields according to postcode areas.
- LS4 – 10.3%
- LS2 – 9.2%
- LS6 – 7.9%
- LS9 – 7.5%
The best areas to invest in a buy-to-let in Leeds
Identifying the best areas for investment requires consideration of factors like location, property type, and demographic demand. Popular areas such as Headingley, known for its student and young professional population, and Chapel Allerton, with its appealing blend of urban and suburban living, are among the top choices.
Other areas like Horsforth and the city centre are also gaining traction among investors, thanks to their connectivity and lifestyle amenities. Let’s take a look at these areas in more detail, using postcode locations.
The LS4 postcode holds the highest rental yields in Leeds, averaging at 10.3% with properties averaging at £219,935. This area is home to the inner-city districts of Burley and Kirkstall and, as a result, attracts a big student population and young professionals.
Also, the area is close to Headingley which is the town’s centre and is filled to the brim with restaurants and bars for these students and young professionals to enjoy.
Situated just north of Leeds city centre, the LS2 postcode area asks for an average property price of £160,054 and has an average rental yield of 9.2%. The area also holds the University of Leeds campus, meaning that the opportunity for shared/student accommodation is rife. Other areas within this postcode include Blenheims and Woodhouse.
The LS6 postcode area consists of areas like Beckett Park, Burley, Headingley, Hyde Park, Meanwood, and Woodhouse. The average asking price for property here is £285,470 with an average rental yield of 7.9%.
With the average property price sitting at £149,165 and an average rental yield at 7.5%, the LS9 area is known as one of the best areas for capital growth. This can also be attributed to the area’s convenient location and renovated property in Saxton Gardens.
Leeds offers a dynamic and promising landscape for buy-to-let property investment. Its blend of cultural richness, economic growth, and urban development makes it an attractive destination for investors looking to capitalise on the thriving UK property market. With careful consideration and strategic planning, investing in Leeds can be a fruitful endeavour.
There are many benefits to investing in buy-to-let property in Leeds, and with the various hotspots, you will be sure to find an area that suits your needs as a landlord and with the perfect rental yield.
Once you have found the right buy-to-let in Leeds, you may need a hand choosing the right buy-to-let insurance with CIA Landlords. For more information on the type of insurance coverage for your property, contact us on 01788 818 670.
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