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.

How Much Is The Housing Market In Leeds Worth?

Leeds City Centre Birds Eye View

A recent survey focusing on property values shows that the housing market in Leeds is worth around £59.05 billion. If that wasn’t impressive enough, the key takeaway from the survey is that the market is up 4.2% on 2017.

Survey By Zoopla

How Much Is The Housing Market In Leeds Worth? Aspen Woolf

Clarence Dock, Leeds

Zoopla’s annual survey analyses ten of the largest cities in the UK to determine how much each housing market is worth. This year’s puts Leeds in at number nine in the top 10.

The information analysed by Zoopla shows how buoyant the property market is in Leeds, and that properties are continuing to be in high demand as we move through 2018.

By Postcode

Breaking the results down by postcode showed that properties in the LS17 sector are worth about £6.4 billion in total. This postcode includes areas such as East Keswick, Alwoodley, Eccup and Bardsey. This valuation is up 5.6% on last year’s results.

An estate agent responsible for Leeds and Harrogate for online estate agent Purple Bricks said: “A lot of people won’t put their property on the market until they’ve found somewhere to go to. Areas such as Roundhay and Chapel Allerton are examples of this. As a result, Leeds has become more of a sellers’ market, which is why prices may have gone up slightly and there aren’t that many properties on the market. Any property between £100,000 and £400,000 that comes to market and is priced correctly will usually sell quite quickly.”

South Leeds On The Up

Areas within the LS26 postcode are also rising in popularity, according to the survey. Places like Rothwell, Oulton and Woodlesford are part of a buzzing property market, thanks to fair prices, fewer properties on the market and excellent transport links via train or to the M1 and M62.

The Brexit Effect

It’s not surprising that investor focus is moving away from London and to regional areas around the UK. And the Northern Powerhouse initiative has further boosted the credibility of cities such as Leeds as a property hotspot.

As prices fall in the capital, first-time buyers and property portfolio investors alike are moving to new areas. Increased investment in Leeds city centre has greatly improved the job market and encouraged a new wave of interested property investors.

Getting On The Ladder

How Much Is The Housing Market In Leeds Worth? Aspen Woolf

The advice for those looking to secure their first property is to utilise schemes such as Help to Buy. And for those considering a move, now is a great time. Getting your property valued as soon as possible and taking the initiative while the Leeds property market is rising, is a good move.

There’s no doubt that the Leeds property market has been riding high over the last year or so, and it’s going to be fascinating to watch it continue to climb the rankings. There’s no reason why it shouldn’t stay buoyant and continue to be an excellent option for first time buyers and investors.

Annual Percentage Growth

Below is a list of the annual percentage growth in property value, according to Zoopla’s research. In brackets you’ll see the most popular areas in each city.

  • London – 1.54%
  • Bristol – 3.8%
  • Glasgow – 5.38%
  • Birmingham – 4.08%
  • Manchester – 4.49%
  • Edinburgh – 4.04%
  • Nottingham – 3.69%
  • Reading – 2.37%
  • Leeds, 4.2%
  • Sheffield – 5.63%.