Why investors should turn their attention to the latest Yorkshire buy to let hotspot

14th May 2021

By Callum Ward

The UK property market has offered an extremely buoyant revenue source for countless investors in recent times. Despite the numerous lockdowns, restrictions and economic turbulence over the last 18 months, UK property has proved its incredible resilience time and time again, solidifying its status as one of the world’s leading investment classes.

According to the Office for National Statistics, private rental prices grew by 1.4% in the UK throughout 2020, whilst house prices increased by an incredible 8.5% in the 12 months in the same period. When we break this down on a regional basis, one of the most impressive regions throughout the year was Yorkshire and The Humber. House prices in the region increased by a massive 10.4%, almost 2% higher than that of the UK average, whilst rents increase by 1.6%.

For those who keep up to date with the UK property market this will probably come as no surprise. The Yorkshire region has had something of a renaissance in recent times that has well and truly transformed the economy in the area, and in turn the property market.

One city has been and still is at the forefront of this renaissance is Sheffield. The South Yorkshire city has blossomed into a prime buy to let hotspot in the last few years thanks to numerous developments and regeneration schemes throughout, with many speculating that the city will follow in the same trajectory as Manchester and transform into a prime economic hub in the UK. The city is no doubt on the right track to do just that, however another there is another Yorkshire city following in a similar trajectory to that of Sheffield’s and quietly transforming into a buy to let hotspot… Bradford.

Located in the Western part of Yorkshire, Bradford’s remarkable yet somewhat unbeknownst economic resurgence has resulted in an extremely prosperous market for property investors. The comparison to Sheffield’s impressive growth in recent times are extremely similar. According to Zoopla, house prices in Sheffield have increased by 17.67% in the last five years, with the current average price paid standing at just over £190,000 and average rent at £784pcm (home.co.uk). In the same period, Bradford had surpassed its fellow Yorkshire city and experienced a 20.56% increase, with the current average price paid at just under £135,000 and average rent at £556pcm. Both cities have bettered the average increase across England in the last five years (15.98%), however both city’s average paid price is drastically lower than that across England (£298,586).

Sheffield’s buy to let market has been massively boosted in recent years by the increase in graduates remaining in the city upon completion of their studies. According to Sheffield Hallam University, 26.5% of graduates from Sheffield universities choose to stay in the area after graduating, resulting in a young, exciting and ever-increasing population in need of high-quality rental accommodation. The positive effect that the younger Sheffield population has had on the property market in the area may even be bettered by Bradford’s when you take a look at the population in the area. The city’s population is dominated by the younger age groups, with nearly 70% of the district’s population aged under 50 and more than 30% aged under 20 according to data from Bradford City Council. With younger people continuing to rent rather than buy a home, Bradford’s young population is bound to mimic Sheffield’s and boost the buy to let market even more.

In addition to the younger population in the city, investors who have invested in Sheffield in the past have massively benefited from the lower-than-average prices paired with the impressive growth, and now Bradford looks set to follow in its Yorkshire counterpart’s footsteps. In the five years to 2025, prices in Yorkshire and The Humber region are forecast to increase by an impressive 28.2% according to Savills, bettered only by the North West’s 28.8% and drastically higher than the UK average of 21.1%. This has resulted in an extremely rare but prosperous mix of lower-than-average prices paired with higher-than-average price growth in the area making for an excellent investment location – and what better city to invest in than Bradford?

Here at Knight Knox, we’ve just launched our latest investment opportunity in the city, Card House. With prices from just £105,000 and an assured rental return of 7% for 2 years, be sure to get take a look and enquire today!

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Why investors should turn their attention to the latest Yorkshire buy to let hotspot

14 May 2021

The UK property market has offered an extremely buoyant revenue source for countless investors in recent times. Despite the numerous lockdowns, restrictions and economic turbulence over the last 18 months, UK property has proved its incredible resilience time and time again, solidifying its status as one of the world’s leading investment classes.

According to the Office for National Statistics, private rental prices grew by 1.4% in the UK throughout 2020, whilst house prices increased by an incredible 8.5% in the 12 months in the same period. When we break this down on a regional basis, one of the most impressive regions throughout the year was Yorkshire and The Humber. House prices in the region increased by a massive 10.4%, almost 2% higher than that of the UK average, whilst rents increase by 1.6%.

For those who keep up to date with the UK property market this will probably come as no surprise. The Yorkshire region has had something of a renaissance in recent times that has well and truly transformed the economy in the area, and in turn the property market.

One city has been and still is at the forefront of this renaissance is Sheffield. The South Yorkshire city has blossomed into a prime buy to let hotspot in the last few years thanks to numerous developments and regeneration schemes throughout, with many speculating that the city will follow in the same trajectory as Manchester and transform into a prime economic hub in the UK. The city is no doubt on the right track to do just that, however another there is another Yorkshire city following in a similar trajectory to that of Sheffield’s and quietly transforming into a buy to let hotspot… Bradford.

Located in the Western part of Yorkshire, Bradford’s remarkable yet somewhat unbeknownst economic resurgence has resulted in an extremely prosperous market for property investors. The comparison to Sheffield’s impressive growth in recent times are extremely similar. According to Zoopla, house prices in Sheffield have increased by 17.67% in the last five years, with the current average price paid standing at just over £190,000 and average rent at £784pcm (home.co.uk). In the same period, Bradford had surpassed its fellow Yorkshire city and experienced a 20.56% increase, with the current average price paid at just under £135,000 and average rent at £556pcm. Both cities have bettered the average increase across England in the last five years (15.98%), however both city’s average paid price is drastically lower than that across England (£298,586).

Sheffield’s buy to let market has been massively boosted in recent years by the increase in graduates remaining in the city upon completion of their studies. According to Sheffield Hallam University, 26.5% of graduates from Sheffield universities choose to stay in the area after graduating, resulting in a young, exciting and ever-increasing population in need of high-quality rental accommodation. The positive effect that the younger Sheffield population has had on the property market in the area may even be bettered by Bradford’s when you take a look at the population in the area. The city’s population is dominated by the younger age groups, with nearly 70% of the district’s population aged under 50 and more than 30% aged under 20 according to data from Bradford City Council. With younger people continuing to rent rather than buy a home, Bradford’s young population is bound to mimic Sheffield’s and boost the buy to let market even more.

In addition to the younger population in the city, investors who have invested in Sheffield in the past have massively benefited from the lower-than-average prices paired with the impressive growth, and now Bradford looks set to follow in its Yorkshire counterpart’s footsteps. In the five years to 2025, prices in Yorkshire and The Humber region are forecast to increase by an impressive 28.2% according to Savills, bettered only by the North West’s 28.8% and drastically higher than the UK average of 21.1%. This has resulted in an extremely rare but prosperous mix of lower-than-average prices paired with higher-than-average price growth in the area making for an excellent investment location – and what better city to invest in than Bradford?

Here at Knight Knox, we’ve just launched our latest investment opportunity in the city, Card House. With prices from just £105,000 and an assured rental return of 7% for 2 years, be sure to get take a look and enquire today!

Callum Ward

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