Is it worth investing in property in Leeds right now?
Investing in the UK property market is always a good idea, especially due to rising property prices and high rates of return. Leeds is considered to be one of the best investment areas in the UK in 2022. According to estate agents in Leeds, there are three main reasons for the same: affordable property prices, high rental demand and profitable rental yields. If you have been wondering if investing in Leeds is a good idea, the answer is yes! And here are some reasons why you should definitely consider taking up this great opportunity.
Affordable property prices
As of December 2021, the average price of property in Leeds was around £211,437, whereas the average price of property in the UK was £269,945. Since then, the average property price in Leeds has risen to £250,709. If you are looking at buying a semi-detached property, it will cost around £239,425 whereas a detached property is £479,251. A terraced property in Leeds will cost around £190,254, on average. From last year, average property prices in Leeds have gone up by 2 per cent whereas, from 2019, the average property price has risen by a whopping 20 per cent. Clearly, buying a house in Leeds is rather affordable, and highly profitable.
Profitable buy to let investment
Buying a property in Leeds will prove to be a rather profitable buy-to-let investment. The average rental yield in Leeds in December 2021 was around 8.9 per cent, and this number is all set to rise in the near future. In fact, Leeds offers the second highest rental yields in all of the UK. And, with the average price of property in Leeds increasing by 13 per cent since the Covid-19 pandemic, it is safe to say that an investment in Leeds will be highly profitable, in the short term and the long term.
Increased rental demand
The rental demand in Leeds has been rising drastically in the last few years. In fact, as per a report from Zoopla, Yorkshire has seen the highest annual growth rate in rental demand in the UK, reaching a massive 3 per cent increase. With the rising population of Leeds coupled with the strong rental demand, it is but obvious that rental prices are going to rise as the years go by. Also, with increased employment opportunities in Leeds coupled with infrastructural developments, experts predict that the rental demand in this region will rise tremendously. As more and more young professionals and new families move to Leeds, the demand for rental properties will skyrocket.
High growth rate for property prices
As per the latest predictions from major estate agencies, the average price of property in the Yorkshire region is set to rise by a whopping 18.8 per cent by 2026. This is considered to be the highest house price growth in the whole of the UK, in the North West region. And, as the buyer demand as well as the rental demand in Leeds will continue to rise, the average price of property will continue to grow in the long term.
Increased demand for student accommodation
After London, Leeds is considered to have the largest number of educational institutions in the UK. With an increase in the demand for student accommodation coupled with the lack of rental vacancies, experts predict that the average rental price will rise in the near future. In fact, the expected growth rate in rental demand in 2023 is expected to reach a whopping 14 per cent!
Upcoming infrastructure projects
There are quite a few infrastructural projects as well as some housing projects in Leeds, some of which have already started while others are still in the pipeline. The Leeds Southbank project is expected to double the size of the Leeds city centre thus generating new jobs, new income and new accommodation. The upcoming speed train between Leeds and London will also increase the demand for properties in Leeds, due to better connectivity coupled with affordable housing. The upcoming spacious airport, as well as the hospitals, will completely change the infrastructure of Leeds, which in turn will make this region even more attractive to potential buyers and renters.
In essence, investing in property in Leeds will ultimately mean high rental yields, increased rental demand and higher property prices due to the upcoming and ongoing development projects in the region. Who wouldn’t want to make the most of such a great opportunity?
