Property Investment in Sheffield – Why do it?
At first glance, Sheffield is a fairly innocuous city and perhaps doesn’t have the glamour of some other northern cities like Leeds or Manchester. However, Sheffield is being totally transformed, thanks to enormous investment in infrastructure, regeneration and all kinds of development projects. What does this mean for investors interested in properties for sale in Sheffield? Let’s find out:
- Sheffield Economy– as a very centralised city in the UK, it’s an important part of northern England’s economic output. Sheffield city region has a thriving economy and currently boasts a gross value added (GVA) of £11.3bn. The city is currently undergoing a 10-year strategic economic plan with the aim to increase the GVA by a further 3bn. This is bout to attract approximately 6,000 new businesses and introduce 70,000 new jobs into the area by 2024.
- Sheffield Property Prices – as a city in South Yorkshire, Sheffield is experiencing tremendous house price growth. Over the last year house prices in Sheffield have increased by 10%, according to Plumplot. Predictions for the future are quite promising as well. with Yorkshire and the Humber, forecasted to see property prices grow by 21.6% over the course of the next five years.
- Growing Young Population – with the increasing business and job opportunities in Sheffield the number of 20 to 24-year-olds has significantly increased. With a booming tech and start-up scene, these young professionals will be in need of high-quality apartments to rent. This is great news for property investors as the rental demand won’t be an issue for you.
- Top University City – Students account for about 10% of Sheffield’s population. It is home to the two largest universities in the country (Sheffield University and Sheffield Hallam University). While those two universities have the capacity for more than 11,000 rooms, there are almost 50,000 full-time students that also need accommodation. This leads to high demand for private residential properties for rent, both in the city centre and in the suburbs.
- Great Connectivity – thanks to its central location, Sheffield is definitely a very well-connected city. With direct links to Manchester, London, Leeds and Birmingham, as well as many other cities in the UK, it’s hard not to see the appeal. Sheffield will also benefit from the High Speed 2 (HS2) rail link between London and Leeds.
What to Expect from a Sheffield Investment Property?
The Sheffield property market still benefits from relatively low property prices. Not only that but also exceptionally high rents are in the picture. Both of these allow it to offer rental returns from 6-8% to property investors.
The city’s property prices are forecasted to grow by 28.2% over the next 5 years. This exceeds the UK forecast of 2.2% per annum.
One of the most compelling facts is Sheffield’s average rents have increased by 23% in the last 5 years. With expectations of this trend continuing in the future. Nevertheless, Sheffield is still early in the investment cycle and behind many other UK cities. Meaning, that prices and rents are much lower than in most other areas. But this also means that they have a lot more room for growth.
Another favourable thing is that the city’s massive regeneration and revitalization projects are affecting investor confidence in investing in Sheffield. As the city is currently undergoing extensive regeneration, with a range of new investment projects, the face of the city will be changed rapidly
The Sheffield Economic Plan aims to increase the population by 70,000 by 2025. This will in turn further increase the demand for housing. Plus, with the 40% of students deciding to stay in the city after graduation you’d be looking as a steady stream of tenants for years to come.
Who Should Buy a Property in Sheffield?
Given everything we’ve already talked about it’s not difficult to conclude that the Sheffield property market can offer a wide range of investment opportunities.
Firstly, buy-to-let investors can count on great returns on their investment. With the ever-increasing population and thus increasing rents, you can both count on consistent rental demand and the inevitable rise in rents.
Secondly, those interested in capitalising on the rising property prices, in the long run, would certainly have something to look forward to in the years to come. With the expected 28.2% growth, predicted for Sheffield, your investment won’t cause you too many headaches in the coming years.
And finally, the student accommodation market is up for grabs for anyone interested in this type of investment. As one of the finest student property markets in the UK, Sheffield offers lots of benefits for both students and landlords.
Here are a few of the top areas where you should look for a property to buy in Sheffield:
- Sheffield City Centre– a perfect area for those interested in buying rental and student properties in Sheffield. With rental yields reaching 7.83% in S1 postcode, you’ll find some of the best investment opportunities here.
- South East Sheffield – This S2 postcode can generate rental yields as high as 6.2%, and is most attractive to families. It also offers a variety of prices and types of properties for you to choose from.
- East Sheffield – considered as one of the most affordable areas of the City, it encompasses S2 and S5 Sheffield postcodes. Meaning, even though the properties may not be as luxurious as the other two areas you can still generate amazing yields.
- Whirlow / Eccleshall – an up-and-coming area of Sheffield that is most attractive to students and young professionals. Rental yields in the S11 postcode can go all the way up to 4.0%,
We can for sure say that investing in Sheffield property will give a huge return on investment in the future.
On our website, you can see all of our investment properties for sale in Sheffield, and if you have any questions feel free to contact us for more information.