Yorkshire Property: Where to Invest for Best ROI?

Yorkshire property is a UK hotspot for investors. The popular and picturesque northern county regularly tops the nation’s “best places to live” guides. This is thanks to a plethora of nature, culture, festivals and other hallmarks that offer a great lifestyle. 

For those looking to invest in a booming property market, there are great properties to be found in every corner of Yorkshire. Whether you are looking for a high-growth opportunity, an attractive rental market or place to get away from it all, Yorkshire property has something to offer. 

In this article, we take a look at the Yorkshire property market in more detail and some of the best areas to invest.

Why Invest in Property in Yorkshire?

In recent years Yorkshire emerged as a buy-to-let hotspot. More and more investors are looking for their next investment in cities like Leeds and Sheffield. Yorkshire property broke records in 2021! House prices rose to their highest levels in over a decade. Some areas of the county even saw property prices jump by 21% in just 12 months.

Pandemic trends only helped to bolster Yorkshire’s appeal with a rush for more space and an exodus from London to growing cities like Leeds. Leeds, York and Hull offer plenty of employment opportunities as many companies locate and relocate to the area and cheaper rents and property prices make the area increasingly appealing.

Investors looking for high yields are also looking to Yorkshire with the first quarter of 2022 presenting yields of 7.5%. While the rising cost of living and inflation is a concern across the UK, there should still be strong tenant demand across 2022. 

Property Market Trends in Yorkshire

Despite rising pressure on household budgets from inflation and the cost of living, the housing market in Yorkshire has retained quite a lot of momentum. This is partly due to the strength of the labour market. Here, the number of vacancies exceeds the number of unemployed people in recent months. 

However, in line with trends across the UK, house prices are starting to cool. Yorkshire and the Humber sit fifth on the list of areas house prices are dropping the fastest. In August 2022, the average asking price for a house on the Yorkshire market was around  £241,000 – a 0.9 percent dip between the months of July and August. Across the UK generally, the value of homes coming to market has dropped by almost £5,000.

Where is the Cheapest Property in Yorkshire?

For investors looking for the most affordable properties, West Yorkshire has some of the UK’s cheapest property postcodes, home to half of the UK’s top 10 most affordable postcodes. Bradford’s BD1 takes the top spot with properties to be found for as little as £74,000.

What are Public Transport Links Like for Houses for Sale in Yorkshire?

Yorkshire is well served by the national rail and bus network. It’s possible to get from Leeds to London in around 2.5 hours by train, and Leeds to Manchester is a little over an hour away. The public transport network in the major city of Leeds is constantly being improved, with tens of millions of pounds being invested to make travel easier with improved bus, train and cycle routes in the city. 

In cities like Bradford, 72% of addresses are within 400m of a bus stop. Also, Sheffield’s comprehensive bus and tram network covers the city. In addition to that, the neighbouring areas as well, as as it goes into the surrounding Peak District.

Are House Prices Rising in West Yorkshire?

In August 2022, house prices in the UK dropped for the first time in a year. The general word from estate agents is that so far they haven’t seen too much change on the ground. Sales and rent still remain high on west Yorkshire properties but a slowdown is expected in the near future due to the cost of living and inflation – a trend that mirrors the rest of the UK.

What are the Best Areas of Yorkshire for Property Investors?

When it comes to some of the highest ROI in the UK, different areas of Yorkshire present investors with plenty of attractive yields. Average yields across the county sit at around 4.3%. Yorkshire’s relatively low property prices and decent rents mean that investing in property in Yorkshire can offer better returns than other areas of the UK. 

In 2021, cities in Yorkshire and the Humber performed the strongest overall in terms of best rental yields, due to relatively cheap housing prices and rising rental demands as more people move into the area. Here are some of the best Yorkshire towns to buy property:

York

If considering property in north Yorkshire, York is one of the best places to live. It has a thriving student and young professional population. With plenty of sights, from the cathedral to winding streets as well as pubs and restaurants, property in York is highly sought-after. It also presents plenty of opportunities for investors. In the YO1 postcode, investors can find yields of 4.3% on average and average property prices at £391,616.

Sheffield

If you’re interested in South Yorkshire property for sale, be sure not to overlook Sheffield. In the last few years the city has topped the list of Yorkshire’s property hotspots based on sales activity. Sheffield is affordable and sits on the edge of the Peak District. This makes it hugely popular for those wanting to be closer to nature. The S10 postcode, including Fulwood and Crookes is a particular hotspot. Here, prices have increased 19% over the past 5 years. In the year leading up to April 2022, house prices in Sheffield increased from £189,338 to £202,639. 

Hull 

Hull is a city on the rise and one where the property market presents investors with prime opportunities. Located in East Yorkshire, property prices in Hull remain low. Which makes it an ideal place to upsize or relocate from other areas. All while staying within commuter distance (Leeds and York less than an hour away by train). 

With a bohemian cafe culture and more restaurants, bars and independent shops popping up, as well as millions being invested into the city and some of the finest countryside on offer in East Yorkshire, Hull is growing in appeal. In the last year, properties in Hull sold for an average of £152,786. In 2021, Hull topped the list of the highest short-term rental yields out of 50 cities in the UK at 9.2%.

Leeds

If you’re eyeing up West Yorkshire properties, Leeds is fast becoming one of the UK’s top hotspots. With a growing population, plenty of career opportunities and good transport links, as well as picturesque countryside nearby, more and more people have moved to Leeds, particularly as an alternative to London. According to Rightmove, property prices in Leeds sold for an average of £256,764 in the last year. Buy-to-let property investors enjoy average yields of 4.29 % in Leeds. And in some areas, yields of 11% can be found with the right property. 

In recent years Yorkshire has become a property investment hotspot. With exciting cities, picturesque landscapes and plenty going on, Yorkshire continues to grow in appeal to people of all ages. Towards the end of the year, property prices are expected to slow down. This will make it an ideal time for investors to snap up a property. Rental demand remains buoyant and if investors find the right property in the right area they can achieve attractive yields. Find out more about Yorkshire property investment opportunities by getting in touch with our experts today.