Leeds is a growing, redeveloped city that has been attracting a lot of attention which is great for property investors.
It has captured the attention of business owners and individuals for a wide variety of reasons. This historic city offers the Leeds Corn Exchange which is filled with Independent boutiques, the Henry Moore Institute Exhibit, the Victoria Quarter’s Glass Roof Arcade that has a wide variety of high-end brands and three Universities. The Universities are responsible for attracting more than 65,000 students that flow through the city each year. One of which is the largest in Europe and ideal for student rental. The students of the University are responsible for a lot of the diversity in the area and for keeping many of the nearby properties fully occupied.
Leeds is the gateway to many property development and investment opportunities in the region. In fact, Property Hub has identified some of the UK’s best Property hotspots for the year of 2018 as it relates to the best place to invest for capital growth and the greatest housing demands.
The UK’s Housing Market
Considering some of the higher prices and the not so desired property rental yields within and around London, some of the more seasoned investors have looked to the north to find greater returns. It has been estimated that the north will begin to see some of the UK’s highest average price growth increases within the coming decade. Although the north has been earmarked as the next largest area for capital growth, how do you know which cities will yield the best returns? After speaking directly to some local property experts within the country and studying some housing pricing reports, we’ve come up with some of the best places to invest in the UK – particularly within the city of Leeds.
Considering Investing in Leeds? Here are Some Areas with Promising Growth Potential
Investing in Leeds offers a lot of benefits and potential returns. Mainly due to its growth potential from several different areas that have already added to its overall robust growth.
Each of the following areas contributes to Leeds economic growth and stability. There is growth in the number of students who enroll in one of the three universities each year. There is growth in tourism, the development of major shopping centres and marketplaces, growth in foreign and domestic business opportunities and the city’s overall economic development. These areas are also responsible for the increase in Leeds property value.
Increase in Population
Leeds has experienced a growth in its population and now has over 3 million people who live within its region. In addition to that, more than 7 million people live outside of Leeds and have access to the city and all that it has to offer within just a one hour commute.
The city of Leeds has experienced capital appreciation over the years. It has experienced a 4 % growth from prior periods. Leeds also has new property development projects within the City Centre, very strong business hubs, new tech start-ups and other opportunities. These trends are only expected to continue to grow.
Leeds also has property in well sought-after postal codes that make it an ideal area for growth. LS1 and LS11 are great areas for businesses and employment, particularly for city employees. Other areas that have resulted in good impressive yields include LS6 and LS8.
Despite the fact that other areas within the UK appear to be economically unstable, the city of Leeds is still exceptionally promising. It has established affordable new residential housing and accommodations for its residents. There have also been investments made into revitalising the City Centre, all of which make investing in properties much more attractive for investors across multiple spectrums. This includes students accommodation, private residential properties and commercial properties will all be attractive investments for the city of Leeds.
The city of Leeds offers very promising capital growth, especially with the impact of its three Universities. The growth of its combined student enrollment is contributing growth to the city’s overall population, which is further driving up rental housing demands and housing prices in those areas. This growth in part was due to a £100 million European Investment Bank Loan for capital investments in the area. This included investments made into student housing in Leeds.
Although Leeds is a very modern city, it has a substantial housing stock that is also creating stable housing prices which yields a much higher return for investors.
Growth in Property Value
Leeds has experienced a growth in property value in that the costs for its offices are 50 % less than the office cost in London. Another good thing about this is the increase in smaller businesses who can take advantage of these lower prices without feeling like they are losing quality.
The green light for a new Leeds Industrial Park is estimated to produce 500 new jobs. This lends itself to the potential need for additional housing for those who may need to move closer to the Industrial Park.
Foreign Growth Opportunities
Leeds has also become a very fast and growing area within the UK due to its FDI, short for Foreign Direct Investments. It has experienced foreign investments that have been made in the UK, which in 2014, became the top region for Foreign Direct Investments in all of Europe. They secured a total of 887 projects which was a record number that increased its overall market share and jobs than any other country in Europe according to the EY Professional services firm, Attractiveness Survey.
Of the English regions, Yorkshire experienced the largest increase in project growth, with increases of 145 %. The city of Leeds, in particular, captured 15 inward investment projects.
Considered one of the gems of the North, Leeds attracts millions of tourist each year. With so many things to do in Leeds, including shopping, dining and the nightlife, schooling, business opportunities and more, many travellers from its neighbouring cities spill over into Leeds just for the tourist attractions and the many other things that there are to do in Leeds.
Shopping Centres: According to research, Leeds is now the UK’s third largest shopping destination. The Trinity Shopping Centre is one of the largest shopping attractions in the city of Leeds. It attracts both tourist and locals alike. It houses a wide variety of retail shops, dining and entertainment all under one roof. And it’s a great attraction all year long –in the winter time, the mall displays wonderful Christmas trees, lights and decorations that it looks like a magical Christmas wonderland. This location is great for both commercial and residential investments within the immediate area and the neighbouring communities due to the high volume of foot traffic.
Somewhat different from a traditional shopping centre, Leeds Corn Exchange offers a very unique yet upscale shopping experience. One of the key reasons is because of its architectural design. Often referred to as the architectural masterpiece, Leeds Corn Exchange is located in one of the Northern parts of England’s prime commercial real estate structures. Visitors won’t see any retail chain shops here – that’ because the Leeds Corn Exchange offers independently owned smaller niche based retail enterprises. The advantage is that the retailers here at this Grade A, high-quality shopping centre offers niche specific goods that you just can’t find everywhere. As you can imagine, the property value in this area alone is considered a bit higher just due to its close proximity to this unique shopping centre.
Parks and Recreation: Most of the cities that are located in England have a difficult time finding beautiful green parks and recreational areas. However, there are several of them just outside of the more popular cities. For example, three miles on the outskirts of Leeds City Centre lies Roundhay Park, which is a total of 700 acres. It has two lakes, an all natural parkland filled with a beautiful formal garden, and playgrounds. This park is a great addition that travellers and locals alike have added to their schedules to make their Leeds experience even more enjoyable.
Also located in Roundhay Park is Leeds Tropical World. This very popular tourist attraction has something special for everyone. It offers a one of a kind butterfly house that contains roughly 40 different types of butterflies from all across the globe. They also offer both a rainforest as well as an Australian like outback just before heading across the hot desert. Tropical World is available rain or shine. It is a great place for children, youth and adults alike. This is particularly great for large groups that need to stay at one of the nearby apartments. Apartments are a great investment for short term or long term stay for small or large groups.
Leeds also consists of a large amount of Victorian style buildings as well as modern architectural structures that has become quite tourist attraction as well. Mainly because of the different types of building structures that provides a visual contrast that many travellers rarely experience in one place.
With tourism comes the need for extended stay. Thus there is often a need for apartment rentals to accommodate the rental needs of travellers beyond that of a traditional hotel stay.
To conclude, there has been a host of new property investment opportunities that has developed within the city of Leeds – in and around the City Centre and the trend appears to be moving upward. Additionally, the development of the High Speed 2 Railing which links London to Leeds a lot faster will no doubt attract people from London to purchase in Leeds and/or rent property in Leeds considering the significantly lower housing prices that are available in Leeds.