When it comes to cities that have become cornerstones of the UK’s private rented sector, and its growth in popularity over the last few years. One of the stars of the Northern Powerhouse, West Yorkshire’s largest city has welcomed a wave of new investment and new demand from both students and young professionals over the last few years, which has helped swell the rented market, and welcomed far more investment than ever before.
In the last few years, new developments towards the south of the city centre, including around the docks and canal, have seen swathes of new young professionals coming to the trendy parts of Leeds, while the northern end towards Headingley has helped to welcome more and more students to new purpose-built properties.
But why has Leeds become such a fantastic place to invest in a relatively short space of time for the buy-to-let market?
Experience Invest takes a look at just a few reasons why the city has experienced such a fantastic boost.
The north has been the real hub of growth for young businesses in new sectors over the past few years, and nowhere is this more true than in Leeds. The city has seen thousands of startup companies call it home in recent times, particularly in sectors such as legal, digital and marketing.
Whenever new sectors come to a city in this way, it can provide a real boost for property demand. New business types means a need for different skills than previously required in the city, and this can facilitate more people moving to the area to populate new jobs. In turn, this swells demand for rental property, and makes the city a fantastic place for people to invest.
Leeds is home to two main universities – Leeds Beckett and University of Leeds – and while it perhaps does not have the same number of students as nearby Manchester, it is still home to a substantial volume of people choosing to live in the city to study. At present, Beckett University stats show that there are as many as 80,000 students living in the city at present.
Student populations are an important aspect of the rental market in the UK for any city, but in an area as popular as Leeds, it takes on extra significance. Growing student numbers means that there’s a need for new private sector properties to meet demand, and to fit in with what students want from their properties. This gives investors a captive audience for their property purchases, and makes student-centric cities like Leeds a fantastic place to invest.
Perhaps one of the best reasons for business growth, and thus demand for property through population growth, is the fact that Leeds has one of the most upwardly mobile economies in the UK. According to the city’s council, the city has a £64.6 billion economy at present, and this is predicted to grow by 21 per cent in the next five years.
The city has helped to boost this economic growth in the last few years by spending big to make Leeds an exciting prospect for businesses, students and professionals alike. The spend on large scale development in the city in recent years has hit £3.9 billion, and there are plans in place for another £7.9 billion to spent across the next few years, making Leeds an excellent prospect for the future.
The power behind the Northern Powerhouse
In recent years, cities like Leeds, Manchester and Liverpool have become popular for property investors. Continued rising house prices in London have led may landlords to look further afield for lower entry level buy-to-let and commercial investments.
Company checks conducted by companies like Experience Invest help review the state of these Northern Powerhouse markets and determine locations for profitable property investments.
About Experience Invest
The Experience Invest head office is located in London. The company checks and reviews the state of the UK’s property market and offers investors unique opportunities to buy investment properties in key towns and cities including Liverpool, Manchester, London commuter belt properties and more.
There have been complaints of a lack of housing across the UK, which the professionals at Experience Invest have addressed by bringing exclusive Build to Rent opportunities to the market. Thriving areas for this type of property include Liverpool and Manchester.