Sheffield Property Investment
Should I consider Sheffield property investment?
Sheffield is known around the world for its industrial prowess and booming business sector. Residents of the city enjoy an enviable lifestyle and impressive job opportunities in the South Yorkshire city. It’s for these reasons that Sheffield property investment is one of the most lucrative in the UK.
Located in the heart of the country, Sheffield is one of the UK’s core cities that drives the national economy. The city is within an hour’s commute for two million people, giving it access to a large workforce. With access to such a large workforce, it makes Sheffield highly appealing to businesses and industries.
The city has a significant presence in sectors as diverse as digital, finance, logistics, and low-carbon industries. Sheffield has a modern economy which puts it on the map and drives investment from around the world.
Why buy property in Sheffield?
Sheffield House Prices
It is currently an excellent time for Sheffield property investment. According to the ONS, house prices in Sheffield have increased by 13% in the last year. Despite this strong growth in prices, it still remains under the national average, so there is room for growth in the future. According to Savills, house prices are set to increase by 11.7% in Yorkshire and The Humber in the next 5 years, with Sheffield firmly at the forefront.
Sheffield Rental Market
According to the latest census, the population of Sheffield is just over 556,000, the majority of which are working professionals thanks to the high student retention rate in the city. As a result, Sheffield is currently experiencing a supply and demand issue in its rental market, making it an ideal time to invest in the city. This is evident in the yields in the area, with PropertyData.co.uk stating that the average rental yield in the city is currently 4.2%, with regions like S1, S3 and S5 all exceeding the average.
The best areas to invest in Sheffield
Sheffield has a total of 6 boroughs across the city, including Brightside and Hillsborough, Central, Hallam, Heeley, South East, Penistone and Stocksbridge. The areas with the highest yield according to recent data are S3 with 6% in central Sheffield, S5 with 5.6% annual yields, and S1 with 5.4%. Central Sheffield has proved to be the most popular more recently, however, any of the 6 boroughs offer great investment opportunities and properties that will return a fantastic income and growth.
Sheffield Property Investment Stats
Sheffield house prices increased by 13% in the last year. (ONS, Q1 2023)
The population of Sheffield. (Census, 2021)
- £1,100 pcm
Average property rents in Sheffield. (Home.co.uk. Q1 2023)
The number of students living in Sheffield. (Complete University Guide, 2022)
Percentage of students choosing to stay in Sheffield after graduation (Knight Frank, 2021)
Student Property Investment in Sheffield
Sheffield is one of the UK’s leading student cities, and it’s clear to see why. The city is home to two of the country’s most respected universities: The University of Sheffield and Sheffield Hallam University. Both universities have undergone development in recent times that has further enhanced the city’s status as a university hotspot, something clear to see when looking at the student population in the city. Sheffield is home to over 60,000 students between the two institutions, and with the vast majority choosing to reside in the city during their studies, many need privately-owned student accommodation which only boosts the student property market in the city.
This thriving student community is not only beneficial to the student property market but also to the residential one. Sheffield has an above-average 42% of graduates who choose to stay in the region after graduating, many of whom require a rental property upon the completion of their studies. The below-average house prices in the city also make Sheffield extremely attractive for students looking to purchase their first property after university, further boosting the local economy and property market.
Invest in Sheffield’s Culture
Sheffield is one of the most culturally significant cities in the UK. The city is synonymous with the music, art and theatre industries and has produced some of the finest artists in all three fields in recent times. Bands such as Arctic Monkeys, Pulp and The Human League are some of Sheffield’s most famous musical exports, whilst artists Pete McKee and Joe Scarborough are both renowned for their South Yorkshire-inspired artwork and actors like Sean Bean and Dominic West are just two of the countless Sheffield actors who have made it big in Hollywood.
The strong cultural heritage is evident to see when you look at the countless cultural hotspots that drive visitors to the city year after year. In a report from Transport for the North, it was found that Sheffield received the 4th highest total annual visits in the North, with tourists flocking to the city to visit iconic cultural landmarks such as the Millennium Gallery, Sheffield Cathedral, Chatsworth House and the Crucible Theatre. A report compiled by Global Tourism Solutions on behalf of Sheffield Council also found that a staggering £1.2 billion is spent by tourists in Sheffield every year. This massive influx in investment from tourists only further boosts the local economy and as a result, Sheffield’s property market.
Being one of the most centralised cities in the UK, the Sheffield city region has a thriving economy and currently boasts a gross value added (GVA) of £11.3bn. The city is currently in the midst of a 10-year strategic economic plan, where the city council is aiming to increase the GVA by a further 3bn. This will bring a further 6,000 new businesses and introduce 70,000 new jobs into the area by 2024.
Sheffield was previously a prosperous and busy working-class city, however, post-industrialisation led to an economic decline and an increase in unemployment meaning that many areas of the city were somewhat neglected through the ’80s and ’90s. As the city’s economy returns to former glories, there are a number of large regeneration projects taking place.
The city and government have invested hundreds of millions of pounds into the area, and the evidence is apparent all around the city in new buildings, new public spaces and a thriving local economy.
Connectivity and Transport in Sheffield
Sheffield is a very well-connected city, thanks to its central location in the UK. The most popular way to get around Sheffield is via the city’s bus and tram systems. You can purchase a ‘Citywide Pass’, which will allow you to travel around the South Yorkshire area on various methods of transport using one ticket. When travelling in and out of the city, Sheffield has Connectivity excellent transport links to various parts of the UK.
From Sheffield railway station you can catch trains with direct links to Manchester, London, Leeds and Birmingham – amongst many other regional cities. Sheffield will also be a featured stop on the High Speed 2 (HS2) rail link between London and Leeds. The city also has a great road network, being close to the M67 and M1 motorways.
Sheffield Property Investment FAQs
Is Sheffield a good place to invest in property in 2023?
Whilst the city can occasionally fall under the radar when it comes to property investment hotspots compared to the likes of Manchester or Liverpool, Sheffield is without a doubt one of the best places to invest in property in 2023 thanks to the lower-than-average house prices and strong growth forecasts for prices and rents in the future.
What is the average yield for properties in Sheffield?
According to PropertyData.co.uk, the average rental yield in Sheffield currently stands at just over 4%. The leading postcode district in the city is the S3 area, with an average rental yield of 6.5%. With the increasing demand for rental properties in the area, rents in Sheffield look set to continue their impressive upward trajectory in the future.
Are property prices rising in Sheffield?
Property prices in Sheffield are rising and look set to continue to do so in the coming years. In 2022 alone, house prices in the city increased by 13% – above the likes of London, Manchester and Birmingham. In the 5 years to 2027, prices in the Yorkshire region are forecast to increase by an impressive 11.7%, the joint highest of all UK regions (Savills, 2022).
Is Sheffield a good area to invest in for a first-time property investor?
According to HM Land Registry’s August House Price Index, the average property price in Sheffield is 33% below the national average. The below-average prices in Sheffield paired with the expected growth in the coming years make the city an excellent location to invest in for a first-time property investor.
Is Sheffield well suited to an established property investor?
In addition to being a strong location for a first-time investor, Sheffield is also extremely well suited to an established property investor. The city offers investors the chance to diversify their portfolio and invest in a cheaper market with higher growth margins than a large number of prominent UK buy-to-let hotspots.
What properties do you currently have available for investment in Sheffield?
We have a mix of available investment opportunities in Sheffield. From freehold, residential houses to stunning student studios and en-suite rooms. Take a look at our current available opportunities here.
Why choose Knight Knox for property investment in Sheffield?
Knight Knox make investing in property simple. We are market leaders when it comes to the sale of off-plan buy-to-let properties for the private investor market, particularly in regions including Manchester, Sheffield and Liverpool. We have almost 20 years of experience in helping clients find their perfect property investment in the UK buy-to-let market, offering a personal service to ensure all of your needs are met.
Our track record speaks for itself. We have launched over 100 developments with a total value of over £1.2 billion, over 90 of which are now completed and tenanted. Whether you are a first-time investor or looking to build on an established portfolio, we are certain to have the perfect property for you!