Monday 17 May 2021
Leeds is a thriving city with an economy worth over £62.5 billion per annum and a booming population, meaning that the city is a great place to invest in buy-to-let property.
Not only is Leeds the city where the world’s first steam locomotive was made, which gave the world Cluedo, where the second Ryder Cup was hosted and M&S was born, it has a thriving housing and rental market. The city is struggling to meet the demands for housing; it is projected that 90,000 new homes are needed by 2021 with only 60,000 currently in the pipeline, and this shortfall is having an effect on property prices and rents – driving them up.
The HS2 high-speed rail link between Leeds, Birmingham and London will be located at Leeds Southbank; this project will cut the Leeds to London journey time to just 82 minutes and improve regional and city connections. It is predicted to deliver 19,700 new jobs and create a single economic corridor that will boost the Leeds City Region economy by £7.8 billion a year.
Other large-scale investment projects in Leeds include a state-of-the-art £150 million terminal building at Leeds Bradford Airport set to increase passenger numbers from 4 to 7 million.
Now is a great time to invest in Leeds as a property investor. The housing market and capital growth figures back this up, with some impressive increases historically, presently and projected.
Capital Growth Historical:
- Last 12 months Leeds apartments = +1.76%
- Last 5 years Leeds = +14.61%
- Last 12 months Leeds LS1 apartments = +2.88%
- Last 5 years LS1 = +16.45%
(Zoopla March 2021)
Average Apartment Price:
- Leeds = £149,621
- Leeds LS1 = £243,084
- Yorkshire = £126,887
(Zoopla March 2021)
Projections for Yorkshire:
- 2021 - 4.5%
- 2022 - 6%
- 2023 - 5.5%
- 2024 - 5%
- 2025 - 4.5%
- 5 years to 2025 - 28.2%
Leeds is a popular choice with businesses, students and young professionals and with more than £3.9 billion invested in large scale development projects over the last decade and a further £7.3 billion worth of development under construction and in the pipeline, therefore this Northern city’s transformation is only set to continue and prosper. With this in mind, now is the perfect time for a buy-to-let property investment in Leeds.
Leeds has a combined population of 3 million and a workforce of 1.37 million and over the next 10 years, the economy is forecast to grow by 21% with financial and business services set to generate over half of GVA over that period.
Education
Leeds is home to three internationally recognized universities and has one of the largest further education colleges in the UK.
Leeds Teaching Hospitals are going to build two new hospitals over the next 10 years as part of their new Hospitals of the Future campaign. It represents a £450 million investment in Leeds.
The fact that Leeds is so popular with students is great news for buy-to-let property investors. There are always high numbers of students seeking places to rent during their studies, making a constant stream of people looking to rent. On the back of this, as the city offers great employment opportunities due to the city’s growing economy, many graduates choose to remain in Leeds following university. This in turn increases rental demand among this thriving young professionals demographic, making buying a buy-to-let property investment in Leeds a good option.
Transport & Connections
The city is in a great location for transport and connectivity. By train you can be in York in 30 minutes, in Manchester in 50 minutes and in London in 2 hours. Leeds Bradford Airport is just 25 minutes’ drive.
Regeneration
More than £3.9 billion has been invested in large scale development projects over the last decade.
There is a further £7.3 billion worth of development under construction and in the pipeline.
A total of 460,000 sq ft of new office space is currently under construction and over 700,000 sq ft was completed in 2016, the highest level for over a decade according to the 2017 Leeds Crane Survey. Key developments completed include: No.3 Sovereign Square, a 93,000 sq ft office development by Bruntwood; MEPC’s No.5 and No.6 Wellington Place and the 200,000 sq ft Central Square in the city’s West End.
Leeds South Bank – also home to a developing educational cluster, which includes new campus buildings for Leeds City College, Leeds College of Building and UTC Leeds, the city’s first university technical college. Leeds South Bank is also going to significantly improve transport connectivity and new linkages via the southern entrance to Leeds Railway Station which will act as a catalyst for further development of the area.
Northern Civic Quarter – The former City of Leeds School building is being turned into a new hotel with a second to follow on its former car park. The Leonardo and Thoresby Buildings will become interlinked site to create 53,000 square foot of office and leisure space. (Leeds City Council – March 2021)
Temple District in South Bank – masterplan for the area that straddles Water Lane and Globe Road in Holbeck. First two phases will create two buildings with 176,000 square foot of office space alongside ground-floor retail and leisure units. They’re seeking planning permission for a further 1.1 million square foot of offices, flats, shops, hotels and restaurants.
Lisbon Square – former Leeds International Pool site on the edge of the city centre is set for a £270 million development including a 300-bed hotel and 150,000 square foot of office space.
Former Leeds Dock casino being repurposed as Grade A offices – will have a business lounge, reception area, food outlet, small cinema, 60,000 square foot of offices
Kirkstall Forge second stage.
New city centre park on the old Tetley’s Brewery £155 million redevelopment – It will stretch from the banks of the River Aire all the way down to Crown Point Road, with a new bridge between Sovereign Square and Leeds Station. This project is now one of Europe’s largest regeneration programmes and due for completion in 2023. It includes 850 new homes, as well as 85,000 square metres of office space, 15,000 square metres of leisure space and a new 400-bed hotel.
Transformation of The Headrow – The Headrow is a major route in and out of Leeds city centre and its £20.7 million makeover is going full steam ahead. It’s part of the wider £174 million project to upgrade public transport and improve the public realm across the city.
The green walkway in the heart of the city – New York has one, Paris has one and now Leeds is getting one. A garden walkway linking the South Bank to the West End. Expect a host of new shops, bars and restaurants as part of a wider mixed-use development surrounding the viaduct.
And, if this is not enough to convince you of Leeds strengths, it is also where Pudsey Bear was born and bred.
