Could Leeds be the Next Property Investment Hotspot?

Could Leeds be the Next Property Investment Hotspot?

Overseas investors looking for the next big thing in UK property, have been looking north from the expensive capital of London, and many have found Leeds. A combination of a weaker pound, which makes buying UK property cheaper for investors from other countries, prices that are considered to be at their peak in London and the Government’s HS2 project, are working to make Leeds an attractive investment opportunity.

Don’t just take our word for it. According to Leeds-based Hentons, an accountancy firm and property investment firm Palace Capital, middle eastern investors, in particular, are showing increased interest in the north-west city. It certainly makes a change from the London property market hitting the headlines!

While there are a number of details at play behind the increased interest in Leeds property – residential and commercial – the price difference is the most striking.

Figures from mortgage lender Nationwide put the average price of residential property in Yorkshire and Humberside – where Leeds is situated in West Yorkshire – at £150,823 in the third quarter of 2016.  In London, over the same period, the average home price was £474,736.

As we have said, however, the price difference isn’t the only driver for overseas property investors.

The Government’s HS2 project means new highspeed rail lines will be operating from London to Birmingham, Manchester and Leeds by the early 2030s. Yes, 15 or so years is a long time. But, if you’re making a long-term investment that you hope will reap significant rewards, then looking at these additional details mean Leeds makes sense. Particularly with so much uncertainty stemming from Brexit and incoming President Trump. Buying low, with the intention of selling higher in a few years when developments have been built and politics have settled, actually sounds like a very sensible investment idea.

“Leeds is seeing some significant developments with major office and retail schemes launching this year,” Nadeem Ahmed, managing partner at Hentons told the Yorkshire evening Post. “These, plus longer term developments like HS2, are driving a spike in interest from investors. We are seeing overseas money moving into residential developments around the city core, aimed at students and young professionals.”

That combination of house building and infrastructure support from the Government is clearly supportive of Leeds as an investment opportunity. Aside from that, Leeds is a young, vibrant city. It’s got a very good, popular university and isn’t too far away from other great university cities like Newcastle, Manchester and Liverpool.

All that combines to make sense to overseas investors. According to Palace Capital, interest from middle east investors has been on the up for a while and is no longer as surprising as it was.

If the financials make sense for serious property investors from overseas, then they will probably make sense for some local investors too. And, if you’re interested in entering the Leeds property market sooner rather than later, you could do worse than take a look at what’s on offer at auction.

Our Birmingham auction is filled with all kinds of properties from the northern city and surrounding areas. So why not do some research and see what the city’s property market has to offer you as an investor. You could even take a look at our next auction catalogue too!

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