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Property Investment in Leeds

If you are reading this, it’s likely that you believe that property is the best place you can invest your money for the long term. After all it has consistently outperformed every other asset class for decades when you consider both its yield and capital growth. 
But where is the best place to invest and which kind of properties work best? 
You need to be armed with a certain amount of knowledge and information to be able to make an informed choice before you buy. Without that in place, you could be making all kinds of very expensive mistakes! Sadly we see this quite a lot. 
That’s where our team of property professionals come in. 
You’re in the right place - we’re the leading property investment specialists in Leeds and we’re here to advise and guide you on the strategies that are proven to work best, coupled with an in depth understanding of our local market that comes from many years of experience here on the ground in our local market. 



Should I invest for yield or capital growth?


Everyone is different and so you should ask why you are purchasing and what your strategy should be for your circumstances. For example, do you need additional cashflow now, or is this primarily for a pension pot for the future? Although cash flow is more predictable, capital growth is a huge advantage when investing in property as historically property doubles in average every 7-10 years! Investing for a mix of yield and capital growth is therefore a wise choice.

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What kind of yield can I expect in Leeds?


This varies from area to area but broadly speaking, in Leeds, you should expect yields of 4-7% on buy-to-let properties, and 8-12% on HMO’s. ROI is generally considered more important than yield however and, once you know what your detailed costs are, you will be able to calculate this fairly accurately. ROI will be much higher if purchasing with a mortgage as leverage, since less of your own cash is required.

What kind of capital growth can I expect in Leeds?


House prices increased by 9.1% between September 2021 and 2022, and 7.6% during the same period in the year prior (Source - Zoopla).
Leeds has consistently performed in the top 5 cities in the UK for capital growth for many years now. Leeds is currently seeing one of the largest regeneration projects in Europe with its redevelopment of the South Bank, a £500m scheme, which will see the creation of 35,000 jobs and which is set to double the size of the city centre.
The average price for a property in Leeds at the time of writing (November 2022) is £241,113 up from £136,692 10 years ago (Source - ONS).
Property values go down as well as up and you need to be prepared for that. The long-term trend, especially for an island, with increasing demand for homes and where we have historically been unable to meet house building targets, has been an upward trend.
When investing in property, you should always do so with a long-term outlook.

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Which are the best areas in Leeds to invest in property?


We get asked this question a lot and there’s no one size-fits-all answer. It depends on the results you are looking to achieve, your budget, and the kind of tenants you wish to attract. We know every area in Leeds extremely well so we can help you to narrow this down.

Which types of property work best for investment in Leeds?


Again this is a matter of personal preference and will come down to what you wish to achieve. It will also depend on your level experience and how passive you wish your investment to be. Once we have spoken to you, we can start to identify this and fit this into your strategy. Some investors prefer small city centre apartments, some prefer large HMO’s, some look for semi detached properties for families. Each have their pros and cons and we’ll talk you through these when we speak. Although HMO’s often have higher yields, it should be recognized that they have higher regulation, come with more challenges, higher turnover of tenants, and larger overheads. If done correctly HMO’s can be more lucrative, but they often require more knowledge and experience as a Landlord, otherwise they could become costly. Buy-to-lets on the other hand are an easier investment type with far few challenges, less overheads, and where tenants typically stay longer. Capital growth is very different for different property types so this also needs careful consideration before you invest. 

Summary



There’s a lot to consider and you should spend plenty of time gaining the knowledge you need to invest wisely before purchasing any property.
Our team of experts have been advising investors for many years and our in depth understanding of our local market makes us a great place to go to when you have questions about investing in the Leeds property market.