Why Invest in Leeds Property in 2024?

When it comes to investing in property, it is vital to establish local demand – thankfully for those investing in the Leeds buy to let market, demand for property is abundant. The city is home to almost 800,000 people, making it the third-largest city in England based on population. However, the broader Yorkshire region is home to 5.4 million people and is England’s largest county, making Yorkshire property investment increasingly popular, presenting an exciting opportunity for investors looking for investment opportunities.

With a student population of approximately 136,000, there is a huge appetite for this type of accommodation in Leeds, making student property investment in Leeds particularly appealing. However, student property investment in Leeds isn’t the only potential option for investors – an estimated 30% of Leeds students decide to remain in the city after graduation, and working professionals are relocating to Leeds in droves, especially from London where 23,500 individuals relocated northwards from the capital between 2009 and 2015. This migration of Londoners to Leeds is likely down to the competitive property prices and lower cost of living in the north, paired with the influx of career opportunities and business growth across the North.

Considering these factors, it is no wonder that the average rental property – specifically in Leeds – receives up to 30 enquiries, a testament to how competitive the rental market in Yorkshire is.  

According to data from Land Registry UK, the average rental yield for buy to let properties in Leeds sits at 4.94%, which surpasses the national average of 4.75%. However, certain parts of Leeds see even higher rental yields, namely the LS2, LS3 and LS4 postcodes which occupy the city centre. These yields are anticipated to remain high in the coming years considering the immense demand for property in Leeds, with the city being the second fastest growing city in terms of rental listings, with 22% more between ‘22 and ‘23.

Following Leeds 2023, the city’s designated year of culture, the cultural identity of this northern powerhouse city has never been stronger. The city is home to world-leading art, music, theatre and film to name just a few, making Leeds a thriving, vibrant place to live and work.

Firstly, Leeds is home to a variety of impressive music and performance venues, namely the Playhouse, the Grand Theatre & Opera House, First Direct Arena, and the O2 Academy. We would also be remiss to neglect the huge impact of the annual Leeds festival which takes place just outside of Leeds and brings 100,000 to the city each year.

Furthermore, Leeds is home to its own specialist art university, as well as one of the most established art galleries in the UK, Leeds City Museum. Leeds also has a thriving film culture and hosts its own film festivals each year. With the very first films being made in Leeds in 1888, the city regularly pays homage to its cultural heritage to celebrate the creation of independent visual arts.

Looking to embrace nature? Yorkshire is home to some of the most scenic walks and heritage sites in the UK – from the Yorkshire Dales to the North York Moors, to the stunning Harewood House and St. Aidens nature reserve, Yorkshire is the perfect place for lovers of nature and heritage.

If you’re searching for a city that boasts exceptional capital growth, look no further than Leeds. The city has seen exceptional property price growth over the past decade, with prices sitting at £131,526 at the beginning of 2014 before propelling upward to £207,501 by 2024. This represents a price increase of £75,975, or 57% – it’s no wonder JLL suggests that Leeds has had the highest annual price growth (over the last five years) out of all the ‘Big 6’ cities in England.

This trajectory is expected to continue over the coming years, with Savills predicting that the value of property investments in Leeds could increase by 20.2% between 2024 and 2028 across the broader Yorkshire region, building a compelling case for Yorkshire property investors.

It is also worth noting that despite this huge increase in property values, Leeds buy to let properties still remain competitively priced, with the average house price sitting at £282,000 as of January 2024. This means that Leeds units sit £74,500 below the national average, making Leeds a brilliant option for property investors searching for impressive capital growth at a competitive price.

Simply put, business in Yorkshire – specifically in Leeds – is booming. The city has one of the highest rates of citizen employment in the UK, with half a million of its citizens being in employment. 

Leeds is home to 30 national and international banks, 3 of the top 5 building societies, and all of the UK’s major credit reference agencies, making it the core of the UK’s financial sector. In fact, Leeds’ financial and professional sector employs approximately 320,000 individuals, which contributes to an economic output of £20 billion. 

It’s not just financial businesses that thrive in Leeds – world-leading corporations such as PwC, Deloitte, Ernst & Young, and KPMG all have offices in Leeds. More recently in 2019, Channel 4 also relocated their offices from the capital to Leeds, bringing with them a host of opportunities in media and production and solidifying Leeds alongside Manchester as a key Northern hub for television and film production.