Aspen Woolf looks at the most expensive versus the cheapest property in Leeds

For Sale Signs - Aspen Woolf

The North of England is having a resurgence in terms of regeneration, property development and a growing job market. There are more reasons than ever to invest in property in cities such as Leeds, Liverpool and Manchester, led by the Northern Powerhouse initiative.

Particularly since the vote to leave the European Union in June 2016, property investment across the UK has experienced a sea change. More and more investors are turning away from London and the South East as economic and political uncertainty shake a previously unwavering property market and setting their sights further up north.

Property hotspot

Leeds has become a prime property hotspot, thanks to a steady stream of city-centre regeneration and funding, along with a solid and thriving job market. Add in a bustling city centre packed with all the amenities young professionals look for, and a strong student population, it’s not surprising that investment in Leeds is constantly increasing.

At Aspen Woolf, we keep an eye on all the property investment news across cities including Leeds and have examined recent sales to get a picture of the kinds of prices people can expect.

Variety of property

The cheapest residential property that completed in March this year sold for just £36,500. At the other end of the scale, the buyers of the most expensive property sold in March paid more than 26 times this price.

This shows the sheer variety of options for people looking for property in Leeds. Whether investors are searching for the perfect buy-to-let property, or families are looking to move into a larger house, there is a scale of pricing available that isn’t seen in regions further south.Land Registry figures

The figures from HM Land Registry for March 2018 show that some property investors paid a lot of money for truly stunning properties situated in the city’s suburbs, while other people sought out and found bargains closer to the city centre.

The most expensive home sold in March was a detached house in the Boston Spa area of Leeds. It was sold for an impressive £975,000, providing a stark contrast with the cheapest flat sold for just £36,500.

UK-wide, across the same period, more than 90,000 homes were sold. The most expensive residential property on record sold for £15 million and is located in the London suburb of Barnet. The cheapest of all went for £20,000 in County Durham. This provides a good scale to measure Leeds prices by.

Detached properties

A closer look at what buyers in Leeds secured for their money can be seen by detailing some of the sales below. As mentioned, the most expensive property was located in Boston Spa. For £975,000 the buyer enjoyed a five-bedroom detached house in this leafy suburb of Leeds. Next on the list was another five-bed detached property in Foxhill Drive, Leeds, which sold for £747,000.

Another five-bed detached family home, this time in the Adel area of Leeds, sold for £650,000 and a four-bed detached home in Boston Spa went for £521,555. A lovely four-bed home in the outlying Leeds village of Shadwell sold for £515,000 and another Adel four-bed detached went for £499,995.

Bargain buys

Turning towards the cheaper end of the market, the biggest bargain was the flat sold for £36,500 in the Hunslet area of Leeds. Another flat in Lower Wortley sold for £37,250 and a terraced two-bed home for £40,000 in Lascelles Place.

No matter what kind of property buyers are looking for, Leeds is a good place to look. From apartments close to the always improving city centre amenities, to large detached homes in green suburbs, the variety available is comparable to that in the South East, but for much more affordable prices.

Investment Property Price Growth For Leeds

Leeds City Skyline view

Property investment in Leeds is increasing, and a new report by property consultancy experts JLL reveals that it’s not going to slow down any time soon.

Average investment property prices in Leeds city centre will increase by 3.5% over the course of 2018, according to the New Housing Paradigm report. The outlook for the next five years is even more positive with expectations of strong price growth at an average of 3.7% per annum.

Proving its legitimacy as part of the Northern Powerhouse and a viable alternative for property investors now looking outside of London, the level of growth expected in Leeds is second only to that projected for Manchester.

Average Rents To Rise

Rents for apartments in Leeds city centre remained flat during 2017, but it’s predicted that they will increase by 3.5% by the end of this year. Again, over the next five years, it’s expected that they will increase by 3.5% every year.

Leeds is the standout market for investors to keep their eye on over the next few years, and housing markets across Northern England are going to be among the strongest too.

London Market Stagnating

This rise of the Northern Powerhouse comes at a time when London is losing its grip as the number one choice for property investors. Its housing market is starting to stagnate, while market growth in the south of the country has been slowly starting to stabilise thanks to high property prices deterring potential investors.

London is still a key market of course, but there is no doubt that the rising interest in property investment across the north is signalling the start of a new phase for the UK’s property market.

Infrastructure Investment

Anyone who has been keeping an eye on developments across Northern England will have seen extensive redevelopment and investment in key infrastructure. Excellent and improving travel links, a relatively buoyant job market and much more affordable housing than in the south of England, have all combined to turn people’s attention to the north.

There is also a marked rising demand in Leeds specifically for the ‘build-to-rent’ market. This is fuelled by the influx of young professionals eager to enjoy the benefits of living and working in a major city, as well as a stream of affluent students willing to pay for a high level of accommodation.

Build-To-Rent Market

There are currently 3,500 build-to-rent units in addition to the 2,000 private sale units sitting in the development pipeline, all due for completion relatively soon.

Historically, this rental demand has been under-served, and this new influx of build-to-rent units will satisfy the need. Manchester has seen this particular asset class perform extremely well, and it’s likely that Leeds will follow suit.

Over the next few years, we expect to see landlords and developers working to optimise this market model.

Why 2018 Is A Good Year to Invest In Leeds Property

Clarence Dock, Leeds

When you’re considering property investment, either as someone new to the game or a seasoned investor, you need to know the latest on the market. Property hotspots alter frequently, depending on many factors, including the wider economic impact and regional investment.

Whether you’re looking to invest in a buy-to-let property, a holiday home or want to add to your existing portfolio, looking at Leeds is a good idea.

Property Investment In Leeds

Why 2018 Is A Good Year to Invest In Leeds Property Aspen Woolf

Bang in the heart of the much-discussed ‘Northern Powerhouse’, Leeds has had a good year in terms of its housing market. House prices have continued to rise throughout 2017, from a relatively low base level.

The obvious area of Leeds to invest in property is the city centre. It’s booming, and in a time where London is falling off the top spot for investment with house prices falling and owners struggling to sell, it’s a solid area to for investors to look at. Most people gravitate towards Leeds city centre, particularly young professionals, students and families. Being close to extensive and impressive amenities in a city that has a good offering of jobs, is a real draw in 2018. Naturally, this means that property prices are higher in the centre of the city, and there are many further outlying areas that offer lower prices.

Demand For Property Still Rising

The local population of Leeds has increased sharply in recent years, and driven up demand for property from buyers, renters and investors. Demand continues to outweigh supply at the moment and this is likely to continue throughout the year. The increase in demand is also showing in the suburbs, as people start to look for more value for their money.

There are plenty of developments underway, with thousands of new homes currently under construction across the city. These aim to bridge the gap between supply and demand in Leeds, where the average house price is now £164,800.

Transport And Infrastructure Improving

Why 2018 Is A Good Year to Invest In Leeds Property Aspen Woolf

Image credit: Tim Green via Flickr

As well as all the activity around boosting the provision of residential, commercial and student properties, there are other signs Leeds is on the rise. There are wide-ranging plans and investment in improving transport facilities, including a revamp of Leeds train station.

The station forms part of a larger vision to completely transform the South Bank area, which stretches from the ‘urban village’ of Holbeck to Leeds Docks. This is aimed at increasing Leeds’ international popularity as well as be a base for the creation of thousands of new jobs and homes.

Strategic Economic Plan

Leeds train station will become an important transport hub for the city, the wider region and the north of England in its entirety. High Speed 2 (HS2) and HS3 have a large role to play in the long term strategic economic plan for the city.

Overall, Leeds is an increasingly vibrant city, offering a growing range of employment opportunities. The city’s retail sector is expanding as are the financial and services sectors, all of which is continuing to attract more people to the region.

All of these factors are combining to boost the need for more property in Leeds, making it the ideal place to invest money in during 2018.

Why Leeds Is Set To Boom In 2018

The Woodhouse district near Leeds University is one example of a great place to invest.

We’ve named Leeds as the number one property hotspot in the north in our analysis reports. As we move into 2018, it’s looking rosy for the property market as a whole in the north of England, but Leeds is the jewel in the investment crown.

With a growing student population, strong innovative business hubs, a plethora of tech start-ups, new developments in the city centre and much more, its success is only going to grow as we move through a new year.

Economic Growth

Why Leeds Is Set To Boom In 2018 Aspen Woolf

While the economy is looking uncertain across the UK thanks to the changes we’re undergoing while leaving the EU, the local outlook in Leeds is promising. The investment in revitalising the city centre, and the establishment of new, affordable residential accommodation will continue to attract interest from commercial, private and student renters this year.

Major Regeneration

There are many development projects still underway, and more in the pipeline. A great example is the revamp of the South Bank, which will deliver purpose-built, high quality and spec city centre accommodation.

More working professionals and the younger generation are waking up to the fact that the North is the centre of positive change. As jobs bring new eager groups of people to cities like Leeds, the demand for apartments and homes in the city centre is constantly rising.

Developments Underway

Now the festive season has finished, various developments will begin to progress. Kirkstall Forge is a big project with more than 1,000 apartments and homes built on a 57-acre site.

The stalled Hilton Hotel development has also restarted, thanks to a new acquisition of the Woodhouse Lane site by Vita Leeds 2 (part of the Select Property Group). The original shell is 14 storeys, and this is set to increase to 16. It will house 312 studio apartments for students.

Expanding Regional Economy

All of these developments have been helped by the success of the economy across the wider region of West Yorkshire. Now worth £50 billion, the regional economy has expanded by 40% since 2007.

Our CEO, Oliver Ramsden says: “The value of property in the city is undeniable. Leeds sees strong demand for high quality and luxury accommodation for both professionals and students. Our own developments, including The Pavilion and Trinity Hall, are delivering rental yields of eight per cent.”

Foreign Direct Investment

Why Leeds Is Set To Boom In 2018 Aspen Woolf

Leeds is the fastest growing region in the UK for Foreign Direct Investment (FDI). In addition, the region is home to the fastest growing young population in the UK, and the largest workforce outside of the capital.

More than 3 million people live within Leeds City Region, and more than 7 million are within an hour’s commute.

Great Value Property

Total office costs in Leeds are 50% lower than those in London. With a talented and innovative workforce, plenty of youth and experience, and great value property, businesses are finding they can save money without cutting corners.

A number of key business sectors are booming in Leeds City Region, including Digital Tech, Advanced Manufacturing, Financial and Professional Services and Healthcare and Life Sciences.

High Investor Confidence

More than £13 billion worth of investment is currently in the pipeline or on site. According to Deloitte’s latest Leeds Crane Survey, 20 major construction projects were completed in 2016, including the highest amount of office space delivered to market since 2007.

Leeds is also a UK transport hub and incredibly well connected by air, sea, road and rail. London is just two hours away by train and one hour by air.

Reinventing A Northern Powerhouse

Leeds is moving towards a knowledge based economy faster than any other region in the UK. This is down to the strength of the education sector, with nine strong universities, a high level of graduate retention and an eager, ambitious pool of talent.

 

Check out our latest developments in Leeds.

Regeneration of Leeds City Centre Brings Investment Prospects

Leeds City Centre Birds Eye View

Leeds is undergoing a major transformation with regeneration projects being proposed in many different areas.

Capitalising on the popularity of the city as an attractive area for young professionals to get on the property ladder, the regeneration plans will continue to bring in people who have become disenchanted with the prices of properties in London and the South East.

Major Facelift Proposed

The area surrounding New Briggate and the Grand Theatre is a historically important, yet run down part of the city. Dating back to the 17th century, this area was considered the heart of Leeds and might be completely transformed if recent proposals are accepted.

Leeds City Council is submitting an application for the Townscape Heritage Programme, run by the UK’s Heritage Lottery Fund. If successful, it will be used to revamp the retail area around the Grand Theatre.

The Grand Quarter

Regeneration of Leeds City Centre Brings Investment Prospects Aspen Woolf

Initially developed in the 17th century by John Harrison, and further altered in the 19th century to become a leading cultural and commercial area of Leeds, the ‘Grand Quarter’ features various listed buildings.

These include the Grade 1 listed St John’s church and the Grade II listed Grand Arcade, which was designed and built in 1897. More recently, the area was allowed to decline due to under investment in commercial properties and by planning being dominated by vehicle access.

Transformation of Historic Buildings

Only 17% of the buildings are currently considered to be in good condition. The scheme looks to transform the area by matching funding from property owners and the HLF contribution to public area improvements.

This will also link in with the huge successes already enjoyed by the ‘Re-Making Leeds’ Programme, which is providing training opportunities for young people, and creating jobs in the building industry.

Student Accommodation

As well as retail and heritage developments, the boom in student housing is continuing in Leeds. London and Scottish Investments (LSSI) have announced that they’re going to expand into the city with proposals for a 17-storey tower block in the city centre.

The tower block, intended for student accommodation, will be built on the site of an ‘80s office block on Belgrave Street. LSSI plans to knock down the office building and replace it with a 17-storey building to house 325 student beds. They also plan amenities such as a gym, outdoor terrace and cinema room.

It’s another clear indication that the move to Purpose Built Student Accommodation (PBSA) has very much reached Leeds, and offers lots of investment opportunities. This proposed project will sit close to St Albans Place, a 376-bedroom building by developer Vita Student, due for completion in 2019.

Mixed Use Projects

Regeneration of Leeds City Centre Brings Investment Prospects Aspen Woolf

Image credit: Tim Green via Flickr

Caddick Developments has plans to regenerate part of the city centre with a £300 million project. They want to transform the Quarry Hill site (2.4 hectares) into a cultural centre surrounding the City College, West Yorkshire Playhouse and Leeds College of Music.

Named ‘SoYo’, the plans include two 16-storey residential blocks, intended for private rentals. Also within the plan are offices, a hotel, bars and restaurants, as well as an overhaul of the public spaces. Assuming approval, the developer wants to start the residential part of the project in spring 2018.

The College of Music itself is currently transforming its campus with a £57 million project, and the West Yorkshire Playhouse is going through a £14 million refurb.

Private Rentals

Dandara has engaged Interserve to deliver a £70 million project for 744 private rented apartments in Leeds. Consisting of four buildings on the southern side of the city centre, it achieved approval already in March 2015.

The apartments will be studio, one, two and three-bed, surrounded by landscaped ground and an underground purpose-built car park. Construction should complete in June 2019. Interserve is also responsible for constructing three schools in the city, with a combined value of £41 million.

South Bank Regeneration

Leeds City Council recommended a major redevelopment for approval. The regeneration of the old Tetley Brewery site on the South Bank includes 85,000 sq m of office space, 15,000 sq m of food, retail and leisure space, two hotels and 850 homes.

Led by Vastint, the UK arm of the developer has been working alongside the council for two years to get this far. They said that the scheme is a “significant regeneration opportunity” that will create “a large number of new homes, jobs and opportunities for investment”.

This number of high quality redevelopment schemes show exactly how much focus is on Leeds as a city with much to offer property investors, whether commercial, residential, or student housing.

Interested in investing. Check out our latest development,  Kirkstall Design Centre.

Why Leeds Is the Best Place in England for New Developments

Clarence Dock, Leeds

New research from Argyll Property Partners shows that Leeds is the best option in England for planning new build developments. The research covers aspects such as value, house price growth, demand for property and the likelihood of planning success.

New build properties in Leeds are worth over 40% more than properties that already exist in the city. In addition, the value of new homes in Leeds are also up 13% year on year.

More Property Sales

 

Why Leeds Is the Best Place in England for New Developments Aspen Woolf

Image credit: Tim Green via Flickr

Leeds is one of the largest local authorities in England, and as such, there are around four times as many property sales in the city compared to the average for England. Another sign that it’s a property hotspot for investors is that the planning authorities approve 95% of all major residential applications.

Second in line for the best city in terms of local authority approval for new build developers is Birmingham, which is followed then by Cornwall, County Durham, Wiltshire, Bradford, Bristol, Manchester and Liverpool. The worst local authority for new build developers was found to be Surrey Heath.

Property Values Growing

In addition to the bonus of understand local authorities, new build developers can benefit from high growth in property values. New builds in Leeds are seeing growth in double digits due to the increasing proliferation of job vacancies. This is driving up the demand for more homes in the area.

There are decent gaps between the prices of new builds when compared to existing homes, which means that there are good profits to be made. The transaction figures are high as well, suggesting that homes should be easy to buy and sell.

Building Encouragement

Why Leeds Is the Best Place in England for New Developments Aspen Woolf

The City Council in Leeds is one of the best in the country for encouraging new builds and developments. Major new projects are springing up all over the city suggesting that many house builders are discovering the opportunities Leeds offers.

Looking at the opposite end of the research, the report showed that high property prices in Surrey mean that developers must pay extremely high prices to secure a site. Compared with other areas of the country, new builds in Surrey Heath are worth around 23% less than existing properties in the same area.

In addition, and directly opposite to findings from Leeds, homes in Surrey Heath are more difficult to buy and sell. Transactions are 50% lower than the average and the local council only approves 75% of planning applications for new build developments.

Investors Benefit Up North

Investors should weigh up options around the country, and focus on the north of England for the best deals at the moment. As well as the statistics shown in the report, Leeds is fast becoming one of the hotspots for a generation of young professionals.

The jobs are there, the regeneration of the city is there, and the space is there for new projects. Add in a sympathetic local council looking to actively increase the new house building developments, and you have a prime location for developers and investors.

If you’re looking to invest, then why not learn more about our latest investment opportunity in Leeds – Kirkstall Design Centre.