5 of the Best Areas to Invest in Property in West Yorkshire
If you're looking for an investment opportunity then the housing market is an option worth considering, low interest rates and rising house prices provide an encouraging environment to achieve a good return on your investment. In addition, Yorkshire and the Humber is one of the regions which has seen some of the most substantial growth over recent years making it one of the most sought-after areas for prospective investors.
Is Now a Good Time to Invest?
Many landlords are currently looking to invest in property within the UK and it’s easy to see why. Rental prices have risen by 10.4% since January 2015 (ONS, 2021) and house prices have risen by 39.3% in the same period (ONS, 2021). In addition, the market achieved this growth despite the COVID-19 pandemic, showing the resilience of the property market within the UK. Property investors can therefore expect to achieve a great yield and strong capital growth in the current climate, largely due to the recent growth in house and rental prices.
Why Invest in Yorkshire?
With average rental yields in the UK being 4.3%, Yorkshire and The Humber offers an appealing average yield of 5.4% on rental properties, this ranks as the third highest region for rental yields in the UK (Shawbrook Bank, 2021). Property prices have also grown at a rate greater than average growth within the UK with prices rising 12% in the region over the last year (ONS, 2021).
We’ve done the research and found the most promising areas to invest within West Yorkshire, so you don’t have to, here’s a list of our recommended investment areas:
North Leeds
North Leeds is home to the University of Leeds Campus and Leeds Becket Headingley Campus, this makes the areas of Woodhouse, Hyde Park, Headingley, Kirkstall and Burley some of the most popular student areas in Yorkshire. Paragon Bank found student property yields to be 13-18% above the rest of the market, showing why student areas are promising to prospective investors. With yields high as well as rental demand, North Leeds student areas make for a relatively safe and profitable investment. It is however important to mention student lets are often prone to a substantial amount of wear and tear so factor this into your decision!
Leeds City Centre
Leeds City Centre is becoming an increasingly commercialised area and is the largest city in Yorkshire by some way. The growing number of high-rises and businesses means that the City Centre is an area incredibly popular with young professionals with large budgets. This makes the area an interesting option for property investment for those with a larger budget who are looking to achieve a higher monthly income.
South Leeds
The South Leeds areas of Hunslet, Beeston and Armley offer some of the cheapest house prices in the city with an average price of £140,695 (Rightmove, Oct. 2021). This offers a great opportunity for investors on a smaller budget looking to generate a strong yield on investments. The area is good for commuters and young families as it benefits from close proximity to Leeds City Centre.
Morley
Morley is an up-and-coming area South of Leeds which is an ideal location for commuters due to its good transportation links to Leeds City Centre with regular bus and train routes. The area is also just off the M62, making Morley perfect for those who work further afield. Morley is appealing to young professionals looking for somewhere to rent with an easy commute. This healthy demand for rental properties means that, given the right property, investors can achieve an impressive yield on their properties, often higher than the national average.
Wetherby
Wetherby house prices have been soaring in recent years with Rightmove reporting a current average price of £450,793 within the area (Oct, 2019), this is up a staggering 19% since 2019! For those with a larger budget looking to invest in property this is a great indicator of a potentially high growth in capital from investing in the area. In addition, the supply of rental properties within Wetherby is relatively low, meaning less competition to attract tenants.
If you’re planning on investing in a buy to let property, take a look at the properties we have on offer. Also, be sure to check out our fully managed lettings service where we take care of everything from finding the right tenant, to rent collection, and even property managment, helping you save time and making your investment as stress free as possible.
