Top 5 reasons why you should invest in Leeds
Leeds has been named one of the top 10 housing markets in the UK across recent years boasting an average 7.1% rental yield against a 3.53% UK average, and a projected 17.1% capital growth from 2017 to 2023. In this article, we explore the 5 biggest factors behind the appeal of Leeds, highlighting why you should invest in one of the most lucrative property markets within the UK.
HS3 - the rail network to change the UK
High Speed 3, also referred to as the Transnorth line, is the new high speed rail network which aims to connect some of the UK’s largest cities to include London, Birmingham, the East Midlands and Leeds. This infrastructure project will see commute times between key UK destinations shrink making it much easier for people to live, commute to and do business in Leeds, the economic hotspot of the North.
HS3 will also naturally open the city to more tourists increasing GDP of the local economy.
Improved transport links will higher the amount of skilled labour required to fill new jobs, meaning unemployment is forecast to reduce by up to 23% by 2030.
Key investments including Southbank and Kirkstall Forge
Leeds has already seen an increase in large corporations locating secondary headquarters within the city centre and surrounding business parks. HS3 will only make this a more relevant move as business people will be able to travel in and out of Leeds for meetings in less than half the time currently required. Channel 4 is a prime example of this. Having confirmed that Leeds will host its new National HQ, this will include creative and digital departments and benefit residents across the region, creating career opportunities and the need for more infrastructure developments.
As a city, Leeds is investing in every inch of its land from the inside (Southbank), out (Kirkstall Forge). The Southbank development is set to double the size of Leeds city centre making this the biggest change the city will have seen in over 100 years and, incredibly, one of the largest city centre developments in Europe.
Southbank will be, as quoted, “a distinctive global destination for investment, living, learning, creativity and leisure.”
As you head towards the outskirts of Leeds you will find Kirkstall Forge, an area built by Monks around 1200 AD, now to have £400m invested in the area. The 57 acre plot, built on the banks of the River Aire, will see 1,500 homes and 400,000 sq ft of commercial, retail and leisure space with the addition of a primary school.
The Northern Powerhouse’s leading economy and the Leeds BID
“The Northern Powerhouse is the government’s vision for a super-connected, globally-competitive northern economy with a flourishing private sector, a highly-skilled population, and world-renowned civic and business leadership.”
Contributing a phenomenal £69.6 billion GVA to the national economy, Leeds has the largest economy in the Northern Powerhouse with the highest rate of private sector jobs growth in the UK.
Outside of London, Leeds is also considered to be the most successful business, financial and legal hub in the UK and is transforming into a knowledge based economy faster than any other UK city - the key to a successful Northern Powerhouse.
All of this will flourish with ease as LeedsBID aims to highlight the cities profile both Nationally and internationally with unique marketing campaigns and reputable events. Bringing in more tourists and increasing the safety and quality within the city for all those who live and work there is all the more proof that now is the right time to invest.
Leeds average yield looking down on larger cities
The demand for rental housing in Leeds from young professionals is comparable to that previously expected of larger, more expensive cities resulting in high rental yield which can, and will, only increase with time and current plans.
With rental yields in Leeds being much higher than many other major UK cities it is certainly a hotspot for property investment. Across Yorkshire, Leeds tops the region for average rental yields; LS6 is noted as the most profitable with 7.1% and the average price of property at the affordable sum of £181,713.
Capital Growth maximised in the West Yorkshire hub
With rental demands and population growth currently at 7 times the rate of London, Leeds is clearly a fantastic area for property investors to maximise on capital growth especially combined with the current performance of rental yields in the city.
Over the last 10 years this West Yorkshire city has enjoyed business growth of 39% with the fastest growth industries including distribution and logistics, communication and financial and business services. This success story is the reason why property prices in Leeds are projected to rise by 17.1% between 2017 and 2023.
Are you ready to invest in Leeds?
For a conversation on how we can support your investment needs - whether it’s your first time or 10th - get in touch with our team on 0800 011 2277.
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