We’ve all heard the saying “Location, Location, Location”. It’s not just a catchy phrase; it’s one of the golden rules of property investment.
When it comes to investing in property, location is everything!
Choose incorrectly and you could be stuck with a property that will struggle to increase in value, you will find it hard to find suitable paying tenants and you won’t achieve the necessary rental income needed to make a profit.
Leeds is one of the Northern cities where we build BTL portfolios for our clients at Lifestyle Property People and here’s why.
Affordability
The properties that we source for our client’s range from around £120k-£170k, meaning that investors only need £65k-£75k to purchase a buy-to-let property, making it a much more affordable option for investors compared to buying a property in the South.
High Demand & Shortage of Properties = Sky-Rocketing Rents
Demand for good quality rental properties is at all- time high, with Yorkshire Post recently, reporting that local letting agents are typically receiving between 25 and 30 enquiries for every single property they list. This high demand has been pushing up rents in recent years with investors typically seeing returns of 5% to 7%
The Potential for Huge Capital Growth
Thanks to major redevelopment projects and investment in infrastructure, property prices in Yorkshire cities such as Leeds are expected to increase by 28.2% by 2028. This is good news for investors who can potentially see the value of their property increase too.
To understand the potential here, just look at what happened in Manchester over the past two decades. Government investment, coupled with the relocation of global companies from London to more affordable northern cities, resulted in a massive increase in property values. Property prices in Manchester today have grown exponentially compared to where they were 20 years ago.
Leeds is in its beginning phase of this bubble, opening up a window of opportunity for investors to reap the same lucrative rewards by getting in early.
It’s An Economic Hub That’s Thriving
Leeds isn’t just growing; it’s thriving. The city’s economy generates £26.2 billion each year, making up over 40% of West Yorkshire’s £70 billion economy. This economic strength has had a clear impact on the property market – house prices have increased by 49% since 2016, and rental prices have surged by an incredible 238%.
It Has A Growing Population That Need Homes
Leeds has attracted major companies in recent years such as JP Morgan, Channel 4, and First Direct, boosting its already skilled workforce of nearly 500,000. And it’s not stopping there with industry giants such as Amazon and Microsoft, looking to set up new locations in Leeds over the next year, the number of people needing quality rental properties is only going to increase.
Don’t Miss Out on Opportunity
There’s no denying that Leeds is a city that offers a unique opportunity for property investors. Its affordability, strong rental yields, demand and huge potential for capital growth make it a prime location to build long-term wealth.
However, this window of opportunity won’t last forever. As Leeds continues to expand and attract investment, competition will increase, driving up property prices. Acting now allows you to get in early, maximise your returns, and take full advantage of the city’s growth before prices inevitably rise even further.
If you’re serious about building wealth through property investment, now is the time to take action. Download our Investing Guide today and discover how you can get started in one of the UK’s most exciting property markets.
