Why Invest in Leeds Property in 2025?

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.  

Rental demand in Leeds remains robust, with private rents rising by 3.0% year-on-year to an average of £1,097 in December 2024. This steady increase supports strong rental yields for buy-to-let investors, with some areas such as Burley achieving exceptional returns of up to 11.6%, according to PropertyData. Despite these exceptional rental yields, Leeds properties remain very reasonably priced for property investors, with the average property in Burley’s LS2 postcode being £184,995 – this is approximately £100,000 below the national average, showcasing just how lucrative Leeds property investment can be if you are a savvy investor.

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.

In November 2024, the average house price in Leeds stood at £249,000, reflecting a 6.3% annual increase. This growth rate surpassed the regional average increase of 5.7%, putting the city ahead of the curve and thereby making Leeds an attractive market for capital appreciation. Despite this increase, Leeds properties remain exceptionally affordable in comparison to the national average of £289,000, making the city a particularly promising area for investors.

This trajectory is expected to continue over the coming years, with Savills predicting that the value of property investments in Leeds could increase by 18.8% between 2024 and 2028, building a compelling case for Yorkshire property investors.

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.