Why Invest in Leeds Property in 2024?

Looking to invest in property in 2024? Discover Leeds property investment and uncover England’s hidden investment gem at the core of the Northern Powerhouse. 

Leeds, a vibrant city in the heart of West Yorkshire, has rapidly emerged as a prime destination for property investment. Boasting a robust economy, dynamic cultural scene, and significant infrastructural developments, Leeds offers substantial opportunities for investors. The city’s diverse property market caters to various needs, from luxury apartments to affordable housing. With strong rental yields and capital growth prospects, Leeds stands out as a lucrative investment option. Additionally, its strategic location, excellent transport links, and thriving student population contribute to its appeal, making Leeds a compelling choice for property investors seeking high returns and long-term growth. Considering investing in Leeds? Here’s why it’s such an excellent choice for property investors…

Looking to invest in property in 2024? Discover Leeds property investment and uncover England’s hidden investment gem at the core of the Northern Powerhouse. 

Why Invest in Leeds Property in 2024: Demand

When it comes to investing in property, it is vital to establish local demand – thankfully for those investing in Leeds, 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, presenting an exciting opportunity for investors looking for investment opportunities in England’s largest county.

With a student population of approximately 136,000, there is a huge appetite for student accommodation in Leeds, with an estimated 30% of these students deciding to remain in the city after graduation. However, it isn’t just students that are relocating to Leeds and Yorkshire – 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.  

Why Invest in Leeds Property in 2024: Rental Yields

According to data from Land Registry UK, the average rental yield for 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.

Why Invest in Leeds Property in 2024: Culture

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.

Why Invest in Leeds Property in 2024: Capital Growth

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 property values in Leeds could increase by 20.2% between 2024 and 2028 across the broader Yorkshire region.

It is also worth noting that despite this huge increase in property values, Leeds 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.

Why Invest in Leeds Property in 2024: Business

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.

Why Invest in Leeds Property in 2024: Regeneration

An abundance of investment is being funneled into Leeds as part of its regeneration efforts, with the South Bank regeneration being one of the most ambitious projects the city has ever seen. The project aims to double the size of the city core by better utilising the land that sits south of the River Aire, which will essentially repurpose 253 hectares of land. The £500 million investment is set to deliver 8,000 new homes and 35,000 new jobs whilst permanently transforming the region, making Leeds an even more attractive location to live and work.

The South Bank regeneration is just one of the many projects taking place in Leeds, with the Wellington Place Financial District also set to transform the city core. This project is set to create a huge 176,000 sq ft of office space, as well as an additional 6,800 sq ft of retail and leisure space, all within a broader development that strongly prioritises sustainability. In fact, the development should generate 35% less carbon emissions than the current targets to become one of the most sustainable buildings in the UK, setting a new standard for green regeneration projects.

There are also plans for a long-awaited mass transit system to be implemented across the city, with the first phase of a tram system set to begin construction in 2028. This won’t just benefit those in Leeds, but will provide greater connectivity for those in Bradford and broader West Yorkshire.

Why Invest in Leeds Property in 2024: Connectivity

Speaking of connectivity, Leeds is an exceptionally well-connected city despite its lack of local tram network. In fact, Leed’s train station is the third busiest in the country and serves approximately 34 million passengers every year. Leed’s station has already benefitted from significant redevelopment, with £500 million being funnelled into improving the adjacent New Station Street in 2019, transforming the station into an impressive modern hub for travellers.

For those looking to travel a greater distance, Leeds Bradford Airport sits just 8 miles northwest of the city and offers both domestic and international flights. Akin to Leeds train station, Leeds Bradford Airport has seen a huge amount of investment, with £100 million being invested into terminal redevelopment which is set to complete by 2026. This investment is anticipated to create 1,500 jobs directly, as well as an additional 4,000 jobs indirectly, whilst generating a huge £940 million for the economy.

Lastly, the Northern Powerhouse Rail initiative is set to transform transportation in the north of England. Northern Powerhouse Rail is a significant rail initiative aimed at transforming the North’s economy. It seeks to enhance rail connectivity between the North’s major economic hubs, delivering faster and more reliable services across the region. By improving connectivity across the north, Transport For The North anticipate that up to 77,000 more businesses and 2.9 million more people will be put within 90 minutes of Leeds, which will be transformative for the city’s economy.

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