The London property market, long regarded as the top location for property investors, has recently seen house price growth slow to a crawl. With house prices having skyrocketed in recent years, buyers in the capital are increasingly frustrated by overpriced properties, strict mortgage affordability checks, and high taxes.
More and more, investors are beginning to look outside of London for opportunities. And it could be argued that Leeds offers one of the best. The city has come a long way since the economic downturn, constantly evolving and developing, attracting scores of young people with multiple universities and colleages, a vibrant jobs market, huge retail destinations and a wild nightlife.
Demand for housing in Leeds far outweighs supply, due to a rapidly growing population combined with reluctance on the part of developers. However, that is beginning to change. There are numerous housing projects across the city, and many more in the pipeline, with the aim of building thousands of new homes.
With a strong local economy and favourable market conditions, Leeds is now attracting large-scale foreign investment. Additionally the upcoming high-speed rail plans, in conjunction with the complete overhaul of Leeds City Station, is poised to make Leeds the most important transport hub in the North.
According to comparison site TotallyMoney, landlords in parts of Leeds could be earning higher returns than anywhere else in the country, with yields of almost 11%, marking Leeds as a prime location for private rented sector investment.
While London appears to have hit the ceiling with regard to potential growth, Leeds looks as though it is only just beginning to flourish.