The potential for profit from property here is immense. Here’s why.
The UK needs to build 300,000 new homes each year to keep up with the demand for housing. In the 12 months to June 2018, recent new home building records were broken. Property developers applied for 235,000 energy performance certificates for new homes – still 65,000 short of the target.
The UK economy is breaking records for low unemployment and high employment. Its population is growing fast, and that growth is forecast to continue. In this environment, the outlook for buy-to-let investment is very positive. All you need to do is find the best places to invest in property UK to take maximum advantage. Our research tells us that one of these places is Leeds. Here are six reasons why.
1. Public money is pouring in
Public money has poured (and is pouring) into Leeds. It has been identified as a key city in the Northern Powerhouse region. Plans for HS2 (High-Speed railway) will connect the northern cities and bring London closer. Expansion of Leeds Bradford Airport will increase international connectivity. Infrastructure is being boosted.
Initiatives and investment to promote business and economic growth should massively boost employment opportunities, encouraging above-average population growth, and fuel demand for new homes.
2. Leeds is a lifestyle location
Leeds has it all. Residents really are left wanting for nothing. Scintillating shopping, fantastic food and dining, superb sports, magnificent music, and fantastic film. All demographics are catered for by the city’s eclectic nightlife. For those who desire more relaxed recreation, some of the world’s most alluring countryside is on the doorstep. Leeds is a lifestyle city to achieve your lifestyle investment goals.
3. Leeds is a centre of education excellence
Leeds is home to four universities, providing a constant stream of highly qualified young professionals for businesses that are expanding or moving to Leeds. The University of Leeds is a top 20 Russell Group university. Around 70,000 students study in the city. They all need to live somewhere, thus boosting the demand for rental property in the city.
4. Leeds is a thriving tech hub
Leeds may house the biggest financial and professional services sector in the UK outside of London, but it’s the future that is causing most excitement. The tech sector is growing fast, and in the digital tech sector revenues, growth and incomes are higher than most other economic sectors. There are approaching 4,000 high tech companies in Leeds, and it is an internet-independent city. These future-proofed industries should boost future jobs growth and regional GDP at rates higher than the national average.
5. A commuter city ripe for investment
Leeds is a major centre of employment, with a catchment area of 1.8 million people. This further fuels the city’s economic growth, and attracts people to live in the city and its surrounds. Leeds is a diverse economy with growing visitor numbers. On average, more than 5 million people visit Leeds every week.
6. High job growth and a shortage of property is boosting rental price growth
Recent research by IP Global forecasts rapid job growth and rental prices for Leeds. It predicts a 6% annual private sector jobs growth in the coming years. Its research also shows a significant shortage of property to satisfy demand, with 90,000 new homes needed by 2021 but only 60,00 in the pipeline in Leeds. Consequently, IP Global forecasts a rapid increase in rental prices, by 18.8% between 2018 and 2021.
According to home.co.uk, the average rental price in Leeds is currently £974 per month. An 18.8% increase could add £183 per month to this average, taking it to £1,157. If IP Global’s forecast proves to be correct, there will clearly be upward pressure on property values, too.
Leeds is undergoing a period of massive investment in infrastructure and regeneration. It’s a great place to live and work, and its four universities provide a stream of highly qualified professionals who are attractive to employers. At the heart of the Northern Powerhouse, and a regional capital, Leeds is attracting new businesses and population growth.
The demand for new homes in Leeds is high and spreading to the suburbs from the city centre in this well-connected city. We haven’t found any negative news to deter investors from buying property in Leeds.
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