Investment Property Price Growth For Leeds
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.
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.
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.
We at Aspen Voolf have a selection of properties ready for your investment. Why not take a look at our options in Leeds, a city with ever-growing investment potential.