Property Investment in Leeds – A Guide

The most significant property investment in Leeds ultimately comes down to profit. Still, there are other considerations, such as the tenants you want and why you buy the property.

Many investors choose an HMO or a house in multiple occupations, which can be very profitable if you aim for the best ROI. HMOs for professionals and students can be found in large numbers in Leeds, and each type serves a significant market there.

But these homes frequently need a lot of care, and frequent tenant changes add to the cost. No doubt, tenants want these apartments, even though they could raise more concerns for landlords than usual.

Investing in a family house in the suburbs may be advisable if you want reliable, long-term tenants. Even though the initial costs of the property may be higher, the security of a long-term lease will guarantee a solid return on investment. It may even lead to developing a bond between you and the renter.

These properties may not require as much maintenance, especially if they are recent construction, which lowers additional annual spending and results in a favourable yield.

Due to a lack of larger family rental homes and increasing demand for larger homes with gardens due to the pandemic, these residences have recently seen the most significant increases in both capital growth and rent.

Apartments in the city centre are an excellent option for long-term investments. They are constantly in demand, especially from young people who want the extreme flexibility and convenience they provide for modern living. An investment with minimal hassle typically has very minimal maintenance costs.

You will eventually be able to cash in on your investment when you sell the property, and you may anticipate profiting from capital growth, especially in the long run. As long as demand outpaces supply, house prices are predicted to grow further.

Buying a three- to a four-bedroom home in Headingley, to the north of the city, could be an excellent choice if you intend to rent out your property to students. There will always be a steady stream of tenants wishing to rent student houses in this town, which is close to the Leeds Beckett University campus and is thought to be the centre of Leeds’ student population.

The average home price in this area is £242,225, and you can anticipate a yield of 7.4%.

Your best bet might be to buy a home in a north Leeds suburb like Roundhay, Moortown Adel, or Horsforth, which are regarded as some of the most significant areas to live in Leeds outside of the city centre if young professionals or families are your target market.

In addition to being in the attendance area for highly regarded grammar schools, residents of this location will have quick train access to Leeds city centre (9 minutes).

A home in a neighbourhood like Horsforth is anticipated to cost, on average, £285,946 and generate a yield of 4-6%.

A variety of people are looking for the same inner-city lifestyle in the city centre, whether they want to be near their place of employment or their place of study. It’s a perfect moment to invest because the city may transform in the upcoming years due to the abundance of loft-style and converted warehouse apartments and planned high-rise projects.

Investors can anticipate a 5-6% yield on an average sale price of £208,267 for a home in the city centre.