Leeds has a greater economy than several European nations, in addition to being a part of one of the largest urban regions outside of London. Although the cost of real estate in Leeds is greater than in much of West Yorkshire, it still offers excellent investment opportunities. Leeds real estate costs continue to be far lower than the national average. Our lettings agents in Leeds, offer a host of property services with the best in market knowledge.
Why Should You Invest In Leeds?
With a population of almost 785,000, the City of Leeds is among the top five cities in England. There are about 3 million people living in the greater Leeds City Region, which extends into West and North Yorkshire.
Leeds is a significant economic hub. According to Leeds City Region, the local economy is valued at £69 billion. According to reports, it has the greatest regional economy outside of London and is also wealthier than several European nations.
Formerly an industrial powerhouse, but now developed into a strong service sector that offers many high-paying employment opportunities. According to reports, Leeds has the second-largest financial and professional services sector after London. One of the major legal hubs in the UK is Leeds. Important rising sectors include those in the digital, internet, media, and creative industries. Leeds serves as the national headquarters for broadcaster Channel.
Leeds provides chances for all types of real estate investment. The north of England is noted for its city centre apartments, inner-city terraces, and flats, but there are also sizable suburban housing developments with separate and semi-detached family homes.
Here, we’ll examine some of Leeds most well-liked buy-to-let neighbourhoods.
Leeds City Centre is currently an excellent area for urban life. There are about 32,000 residents, primarily students and young professionals. Converted warehouses, historic structures, some on the River Aire’s shoreline, and several modern apartment complexes are among the different types of properties.
Holbeck Urban Village, Granary Wharf, and Leeds Dock are well-established city centre neighbourhoods. In the upcoming years, the city centre will house a large number of new houses in the South Bank Leeds and Temple District. In the city centre (LS1 postcode), the typical home price is around £162,800, and landlords may anticipate a yield of up to 7.2%.
Headingley, which is just to the north of the city centre, has a population of about 32,150. There is a sizable campus for Leeds Beckett University in Headingley, which is a classic student neighbourhood. Young professionals and homeowners are also fans of it. For commuters, Headingley is highly convenient since it contains a wide variety of stores, pubs, and restaurants, a train station, and regular buses into Leeds city centre (every 7 minutes).
Landlords in Headingley (LS6 postcode) can anticipate a return of about 5.8% based on the average property price of about £268,800. A student rental has the potential to produce much more.
With a combined population of around 45,600, Burley, Hyde Park, and Woodhouse are inner-city neighbourhoods to the north of the city centre. Burley, Hyde Park, and Woodhouse are also highly well-liked among students since they are close to the university campuses in the city centre and are accessible by bus or foot. Also, there is a need from the employees at Leeds General Infirmary or LGI.
For HMO investors, these places provide significant potential. Average home prices (mostly in the LS2 and LS3 postcodes) are £207,000, and yields are approximately 6.5%. An effective student lease might produce much more.
There are around 78,300 people living in Armley, Beeston, and Hunslet, three suburbs in the south of Leeds. These are regions of primarily terraced houses constructed when this was the city’s industrial core. Property values are much below the average for Leeds, making buy-to-let investments quite attractive. In this region (LS10, LS11, and LS12), the average property costs between £129,500 and £165,000, while returns range from 4.5 to 6%.
There are around 165,500 people living in the north Leeds suburbs, which include locations like Alwoodley, Adel, Horsforth, Moortown, and Roundhay. These are Leeds most affluent residential neighbourhoods. Easy proximity to the city centre, the Yorkshire countryside, and well-regarded schools like The Grammar School at Leeds all help the market in this area.
As North Leeds is the most costly location in the city for real estate, profits for landlords are limited. A family residence there can cost anything from £300,000 to more than $1 million. Yields based on the postcodes LS16, LS17, and LS18 are in the range of 3-4%.
The communities that surround the most popular locations provide better value. Kirkstall, Meanwood, and Oakwood are a few examples. There is a train station at Kirkstall Forge which takes 9 minutes to get into the heart of Leeds.
Prices range from $225,000 in Kirkstall (LS5) to $262,800 in Meanwood (LS7) to $272,000 in Oakwood (LS8). The region’s yields range from 4.8 to 5.8%.
Crossgates, a suburb of north-east Leeds and Garforth, a neighbouring independent town, are sought-after by families because they provide exceptional value for midrange real estate. They both have convenient access to train stations that provide access to Leeds, and commuters find them appealing since they are close to the M1 and the Thorpe Park business park. Along the new East Leeds Orbital Drive, around 5,000 new homes are anticipated for this part of Leeds in the upcoming years.
At Crossgates (LS15), the typical property costs £220,400, and the return is about 3.8%. In Garforth (LS25), the typical property costs £254,000, and the return is about 3.5%. Investors may want to think of Pudsey and Farsley in west Leeds, which both have populations of 25,000 and 22,500, respectively. Both provide affordable real estate that’s favoured by family buy-to-lets.
Morley, which has a population of 43,300 and is southwest of Leeds, features good-value real estate. It enjoys convenient access to the M62, several sizable business parks and the sizable White Rose Shopping Centre offer a huge chance of employment. Farsley (LS12) has average prices of £228,500 and yields of about 4.5 percent. Pudsey (LS28) has average prices of £179,300 and yields of about 4.2%. In Morley (LS27), the average price is £217,700, with a yield of around 4.8%.
Overall, there are a lot of compelling reasons for investing in Leeds. Leeds provides a variety of advantages to investors seeking development, stability, and a good return on investment, from its robust economy and competent workforce to its first-rate transportation options and inexpensive housing costs. Leeds is a city that is really on the rise with its distinctive fusion of tradition, culture, and innovation. This is the ideal time to invest in its future.