Why Bradford could be a star performer for property investors in 2018
When you’re searching for the best places to invest in property UK, Bradford may not be the first city that springs to mind. However, our research has found that it could be the cut-price gem in your property portfolio. In this article, you’ll read about the six things we think make Bradford a great place to invest in property.
Introducing Bradford
Situated in the heart of West Yorkshire, Bradford has a population of more than 500,000. Though it is a city, residents here live on the doorstep of some of the UK’s best countryside. The Peak District National Park is only 40 minutes away by road, as is the Yorkshire Dales.
The city is an eclectic mix of the historic and the modern. It’s lively, with some great work and leisure opportunities – perfect to set up a business or move to for all lifestyles. And we think it’s going to get better, which is why it could prove to be one of the star locations for property investment in 2018.
Here are six reasons why you should be looking at Bradford for your next property investment.
1. Great yields at an affordable value
Property prices in Bradford are very affordable. Since the Global Financial Crisis, the average property price in Bradford has increased by only 6% to around £128,000 (home.co.uk). This is more than £80,000 below the national average.
For buy-to-let investors, the gross rental yield will be very attractive, too. Average rent is £556 per month, providing a rental yield of around 5.25%.
2. Investment in regeneration
There is some major regeneration investment taking place here. This is transforming every aspect of the city, with money being ploughed into the economy, local business facilities, commercial and offices, public spaces, retail, transport, and residential.
The City Centre Growth Zone has benefitted from £35 million of investment to support businesses here – but this is a drop in the ocean. In the last few years, total investment in regeneration and infrastructure projects has hit around £1 billion.
3. A thriving local economy
There are around 17,000 companies in Bradford, ranging from small startups to nationally recognised brands such as Morrisons, Gratton, Yorkshire Building Society, and Jet2.
4. A young, well-educated, and fast-growing population
Bradford has a young population – one of the youngest in the UK. It’s growing, too. It is set to increase by more than 10% over the next 20 years, to 582,900 from 530,000 today.
Of its more than 220 schools, 20 have been rated as outstanding by Ofsted. With 23 private schools and the renowned Bradford Grammar School here, there are plenty of quality educational opportunities for families.
The growing, well-educated population is a draw for businesses. It should also provide buy-to-let investors with a steady stream of tenant demand.
5. Transport development will put Bradford at the heart of the Northern Powerhouse
Bradford could be the next stop for high-speed property investment. That’s our conclusion now that the city has been targeted for a High-Speed Rail station. This will bring Manchester, Liverpool, Leeds, and Newcastle much closer for commuters and businesses. Manchester city centre will be just 20 minutes away.
The knock-on effect on Bradford’s economy is estimated as a huge £1.3 billion. The population growth forecasts were made before the High-Speed Rail station plan was announced. It could be that the local population grows much faster than currently predicted.
6. A lifestyle city
Bradford is a lifestyle city, offering something for everyone – from the amazing countryside surrounding the city to the range of bars, bistros, cafes and restaurants, via The Broadway (a delight for retail therapy). In the city centre, the £25 million Bradford City Park is loved by locals. It’s a place to meet, relax, and has become a venue for outdoor performances.
For those who enjoy eating out, Bradford offers something to suit all tastes (not just the curries for which the city is so famous).
Should you consider investing in Bradford?
Our research points to Bradford as providing exceptional property investment potential in 2018. There has already been a tremendous amount of investment in regeneration here, and this is continuing. Property prices are very affordable, and rental yields are attractive. Property prices could rise substantially in the coming years, as the benefits of High-Speed Rail filter through.
As a destination for beginner investors and seasoned investors seeking to expand their property portfolios, we believe Bradford has much to offer. To discover our up-to-date property investment opportunities in the area, get in touch with Gladfish today on +44 207 923 6100.
Live with passion
Brett Alegre-Wood