Reasons to invest in property in Leeds: Where are the best areas?04-01-2024 | Yorkshire & Humber
Although first known for being a mill town, Leeds is now a thriving city filled with ample opportunity for both residents and those looking to invest in this thriving cosmopolitan city with a strong economy. Here, we take a look at all of the reasons to invest in property in Leeds and where the best areas are to do so.
Situated in the heart of Yorkshire, it has emerged as a prime choice for property investors for reasons such as a growing population and attractive rental yields. But these are not the only reasons for landlords to be investing in Leeds.
But, before we go into detail about why investing in Leeds will help your property portfolio expand, take some time to look at the different types of landlord insurance available to you. Get in touch with us at CIA Landlords for more information!
Reasons to invest in Leeds
As a landlord, you may be looking to invest in property in different cities in the UK and naturally, you want to find out as much as you can about the opportunities offered to you within those areas. Besides high rental yields and a growing population, Leeds has a lot to offer.
Strong Economic Fundamentals:
As we mentioned before, Leeds has a thriving economy that has its strengths in finance, healthcare, manufacturing and technology.
It is because of this that employment is stable in the city, resulting in stability in rental demand too. Additionally, housing prices are more affordable compared to other cities in the UK which will allow you to maximise your investment returns.
Rental yields in Leeds are high and consistently outperform the national average, which sits at 4.75%. Leeds’ average rental yield sits at 6.12%, ensuring a solid income stream.
Diversified Rental Demand:
Leeds’ population is projected to grow by 5% in the next decade, which means that the rental demand will be boosted higher. As a result of this, landlords will have an even better chance (more so than now) to invest in a property that is bound to be profitable.
There are multiple tenant profiles in Leeds which cater to young professionals, students, families and couples. This means that you can diversify your property portfolio and invest in different types of properties, such as student accommodation, apartments, and semi-detached or detached houses, for example.
Attractive Development Projects:
Cities need to be maintained and renovated at times, and because of this, new opportunities become available, whether they are job opportunities or new investment opportunities. Leeds is no exception to this!
There are currently major regeneration projects taking place in the city, especially in the town and district centre.
For example, the New Briggate High Street Heritage Action Zone is delivering a heritage-led regeneration of New Briggate through the use of government-funded grants for repair and improvement work to buildings and public spaces.
The area will be made more pedestrian-friendly which will increase activity in St John’s churchyard and will encourage new restaurants, cafes and bars to the area.
There is also a town and district centre regeneration scheme which is designed to improve upon public spaces and bring an increase in business and investor confidence. According to Leeds.Gov.UK “Supported by investment by the council totalling £10.3 million, the first phase of projects attracted external funding of £6.36 million and delivered improvements to town and district centres across Leeds.” (Gov.UK)
There is also now a second phase of projects being implemented to improve and regenerate the area around Kirkstall Leisure Centre, Dewsbury Road corridor and Harehills Lane corridor.
Best Areas for Buy-to-Let Investment in Leeds:
As with any city, there will be some areas that are better to invest in than others, and it is the same with Leeds. Let’s take a look at the more profitable areas in Leeds that you, as a landlord, can invest in.
Containing the inner-city districts, some of the city’s highest rental yields can be found in this area averaging at 7.8%. Naturally, this area will be most popular amongst students and young professionals, resulting in high rental demand.
This area has also been redeveloped and now has an array of different shops, restaurants and gyms between Kirkstall Bridge and Cardigan Fields. Additionally, this area is a short walk from the city centre and property averages at £180,687.
Some of the areas within this postcode have not seen regeneration, however, Saxton Gardens has and offers property at an average of £150,738. There is, therefore, still a good opportunity for high rental yields in this area and is also considered a convenient location.
Woodhouse and Blenheims
Rental yield averages at 6.3% in this area and includes the University of Leeds within the postcode. LS2 borders the northern part of Leeds city centre, which also adds to the popularity of the area for students.
Equally, there are also numerous purpose-built student accommodation properties in this area, including student blocks and private student rentals. As a result of the high demand for rent and an average property price of £157,294 rental yield will be high in this area.
Situated a mere 2 miles from Leeds City Centre, Headingley has been popular for student accommodation for a very long time. If the copious amounts of restaurants and bars don’t give it away, then the thriving hustle and bustle of the area will!
Headingley has excellent links to transport, making getting to and from the city easy and convenient, too. In saying this, property investors will have access to many opportunities that will give them the best property type for their needs.
Semi-detached properties average £282,006, with flats averaging at £177,597.
Roundhay, Moortown, Alwoodley, Adel and Horsforth
The northern Leeds suburbs of Roundhay, Moortown, Alwoodley, Adel, and Horsforth are highly sought-after by families. Their proximity to the city centre and abundance of excellent schools have established these affluent residential zones as the most costly in terms of property prices in Leeds.
Roundhay is well-known for its park, often hosting popular local events. Alwoodley boasts the Eccup Reservoir and two golf courses, sharing with Moortown an array of exquisite properties recognised for their stunning architecture.
Adel attracts families and young professionals alike due to its excellent pubs, parks, and schools. Horsforth stands out as one of Leeds’ most favoured locations, owing to its convenient transport links to the city centre, York, and other areas.
In the past year, the average property prices in these areas were as follows:
– Roundhay: £330,990
– Moortown: £346,696
– Alwoodley: £406,311
What to consider when investing in property in Leeds
As a landlord, there are always many different things that need to be taken into consideration before investing in a certain area. Your needs as a landlord will be different to the needs of other landlords, however, there are always a few solid things to take into consideration before investing in property.
- Opt for well-maintained properties to minimise maintenance costs and attract tenants.
- Prioritise areas with strong rental demand, good transport links, and access to amenities.
- Identify your target tenant demographic and choose properties accordingly.
- Seek guidance from professionals to ensure compliance with regulations and maximise returns.
- Choose the most suitable and comprehensive landlord insurance to ensure that your property is secure.
At CIA Landlords, we know how to get you the landlord insurance that you need! For more information on what we have to offer, email us at email@example.com or call us on 01788 818 670.
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