Demand for privately rented accommodation remains strong, despite the Chancellor’s attempts to slow that market by increased stamp duty on buy-to-let and second homes. However, C4P notes a continued increase of interest in properties outside London. Property prices in London have increased and are still increasing that many think it is becoming a bubble. On the other hand, there are many who think London property is recession free. They are of the opinion that the property prices in London can only increase or stay stable. Even if you suppose that it is not becoming a bubble, the prices are no more affordable. Disparity in prices is so wide that a decent two bed family home in Leeds is worth 1/3rd the price of the same house in London. Return wise, investment in Leeds gives you a return of 8-10% whereas investment in London will hardly give you 5% if you are lucky.
Leeds is a university city
Demand for student accommodation is definitely growing in the UK. Leeds has four universities. Leeds University is 8th largest in UK (out of 165). Four Universities have more than 60,000 students.
Leeds is a tourist city
Leeds is a tourist destination that is becoming more & more popular.
Increasingly, visitors to the UK are rejecting hotel & bed and breakfast accommodation. Many are opting instead to rent houses or flats and tourists are now renting individual rooms in people’s homes. Renting of flats on short term basis has increased a lot. It gives tourists more space in less rent.
This has created another pool of potential renters for both home-owners and landlords in the city. Tourists comes to Leeds all year round and pay well for accommodation, so it easy to make a profit leasing out holiday properties in the city and the surrounding area.
Leeds has a growing population
Property prices and rent have risen so much in the South East that many people can no longer afford to live there. People are increasingly moving further north and Leeds is proving to be one of the most popular destinations for people looking for a new place to live.
Population of Leeds is growing gradually. At the 2011 UK census, the district had a total population of 751,500, representing a 5% growth since the last census of 2001. Leeds is multi-cultural city and popular in all communities. Its night life is famous in North.
Leeds has a growing economy
Leeds is ranked as a gamma world city by the Globalization and World Cities Research Network; and is considered the cultural, financial and commercial heart of the West Yorkshire Urban Area. Leeds is served by four universities, and has the fourth largest student population in the country and has the country’s fourth largest urban economy. After London, Leeds is the largest legal centre in the UK, and in 2011 its financial and insurance services industry was worth £2.1 billion, the 5th largest in the UK, with over 30 national and international banks located in the city. It is the leading UK city for telephone delivered banking and related financial services, with over 30 call centres employing around 20,000 people.
Outside of London, Leeds has the third busiest railway station and sixteenth busiest airport in terms of passenger numbers in England. Public transport, rail and road communications networks in the region are focused on Leeds and there are a number of twinning arrangements with towns and cities in other countries. Its assigned role in the Leeds City Region partnership recognises the city’s importance to regional economic development, and the second phase of High Speed 2 plans to connect Leeds to London via East Midlands Hub and Sheffield Meadowhall.
The fact that it is a student city and a tourist destination means that there is no shortage of things for people to do and see in the area. This makes it very attractive as a place to live for young people who cannot afford to set up home in the South East.
Leeds offers great value for money when it comes to investment property.