Property Investment Leeds (2021 Guide)

The Yorkshire city of Leeds has seen considerable growth over the last two decades. With a property market to rival many in the UK, and boasting an attractive living experience, Leeds property investment is quickly becoming a top option. Keep reading to find out why.

Leeds Property Investment

With a thriving economy and ever-growing population, property investment Leeds is at the forefront of investors’ minds in 2021. 

Located in West Yorkshire, Leeds is one of the largest and most centrally located cities in the UK.  

This city is known for everything from its expanding business scene to famous shopping options and nightlife attractions.  

With thriving economic prospects, combined with a high demand for living space from potential tenants, this northern city is one of the best property investment UK areas.  

Market demand for Leeds property has reached new heights due to a surge in the population.  

So, what are the factors that contribute to the appeal of this city as an area to live, work, and study in, and what are the best areas for property investment Leeds has to offer?  

We’ll cover all of this and more in our guide to investing in Leeds property. 

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Contents

Why Invest in Buy to Let Leeds? 

Leeds in sunny weather Leeds in sunny weather

The question on a lot of property investors lips is – ‘why invest in Leeds?’.  

Leeds property investment has become a more common prospect since the city has made a name for itself as one of the UK’s top property investment hotspots.  

The Leeds property market was reported to be worth £59.05 billion in 2018, a figure that increased by 4.2 % since 2017.  

Because of this figure, Zoopla ranked Leeds number nine in a list of the top ten UK housing markets, further boosting the appeal of Leeds investment. 

Its accolades don’t end here, though. 

In early 2021, Leeds was crowned the best city to live and work in the North of England, while also being named the best city for parks and playgrounds in 2020. 

While all these accolades aren’t as desirable, with the city also being named one of the worst for pollution, the city is certainly a top choice for property investment. 

So why is Leeds a good place for UK property investments?  

Before buying property in the UK, take a look at some of the reasons why you should take advantage of the opportunities for buy to let Leeds offers. 

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Leeds Property Market: A Student Investment City

Leeds City Centre Building Leeds City Centre Building

Leeds has a thriving young population, and a significant bulk of this population is made up of aspiring students. 

When it comes to property investment, cities with high student numbers and a thriving university scene tend to generate some of the best opportunities for investors.  

This is because student properties are known for generating some of the highest rental yields and most reliable demand of any property type. 

Home to one of the largest populations of students in the UK and from overseas, and considered one of the best student cities in the country, Leeds property investment in student accommodation is certainly a worthwhile venture.  

Those who are thinking about Leeds investment for their next buy to let venture in the UK should definitely explore student investment opportunities available in the city. 

University of Leeds University of Leeds

How Many Students Are in Leeds? 

Leeds has a student population of over 60,000, with more than 39,000 students enrolled in the University of Leeds alone in 2021. 

Amongst the student numbers in the city, the University of Leeds also welcomes over 11,000 international students from more than 170 countries worldwide. 

The popularity of Leeds as a university city not only boosts the success of student property investment due to the high demand for student accommodation, but also makes purchasing residential buy to let Leeds properties an equally lucrative option.  

Many students in Leeds choose to stay in the city after graduation, with Leeds Art University having been awarded the title of ‘University of the Year for Student Retention’ by the Times in 2019.  

With 2020 and 2021 seeing a record number of university applicants across UK cities, the future definitely looks bright for investments in student cities like Leeds. 

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Property Investment Leeds Regeneration

Leeds has come a long way over the years and is now celebrated as one of the UK’s most forward-thinking cities.  

There are plenty of regeneration opportunities in Leeds, improving the appeal of investments in the city.  

Throughout recent years, investment in traditional forms such as road and rail has helped to enhance the city through the creation of local jobs, along with supporting local businesses by driving growth. 

Determined and ambitious schemes such as the Northern Powerhouse are injecting investment into the city’s existing infrastructure.  

Reports even show that the economy of Leeds grew faster than London since the scheme was launched at the end of June 2014. 

Leeds has several exciting regeneration plans in place for the coming years, making the future of investment bright for the city. 

Perhaps the main project currently ongoing in Leeds is the highly aspirational South Bank Leeds regeneration. 

Here, around 250 hectares of land are set to be regenerated, which is around the equivalent of 350 football pitches. 

The project is set to double the size of the city centre, which is expected to create around 35,000 jobs and 8,000 new homes. 

Two new hospitals are set to be created in the Leeds region, in what will be a £450 million cash investment. 

The hospitals will feature an adult and children’s healthcare centre, as well 92,000 sq.m. of new healthcare space. 

Other projects ongoing or that have been completed in Leeds include a new student accommodation skyscraper called Atlus House, new Grade A office space called The Majestic, and a huge transport overhaul in Leeds City Station. 

The latter is one of the most exciting, with the creation of new pedestrian areas and a transformation of the main concourse. 

South Bank Leeds

Perhaps the main project currently ongoing in Leeds is the highly aspirational South Bank Leeds regeneration. 

Here, around 250 hectares of land are set to be regenerated, which is around the equivalent of 350 football pitches. 

The project is set to double the size of the city centre, which is expected to create around 35,000 jobs and 8,000 new homes. 

Leeds General Infirmary

Two new hospitals are set to be created in the Leeds region, in what will be a £450 million cash investment. 

The hospitals will feature an adult and children’s healthcare centre, as well 92,000 sq.m. of new healthcare space. 

Other Projects

Other projects ongoing or that have been completed in Leeds include a new student accommodation skyscraper called Atlus House, new Grade A office space called The Majestic, and a huge transport overhaul in Leeds City Station. 

The latter is one of the most exciting, with the creation of new pedestrian areas and a transformation of the main concourse. 

Increased Growth for the Leeds Property Market  Increased Growth for the Leeds Property Market 

Increased Growth for the Leeds Property Market 

Regeneration in Leeds is set to provide a catalyst for the city’s economy, attracting a larger demographic to the city as the expansive plans maximise its appeal to commuters and present a healthier opportunity for investment. 

With regeneration comes increased growth, and this is evident in the rising rate of property prices in Leeds.  

Predictions from JLL reveal that property prices in Leeds are expected to increase by 17.1 % by 2023.  

Better yet, in recently updated predictions, Savills expects property prices in the Leeds property market to increase significantly, with an expected growth of 28.2% for the Yorkshire and the Humber region.   

This shows that for those with capital growth as their main property investment goal, looking for an investment property for sale in Leeds is a good route to take. 

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Liverpool Prices from £139,950

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ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

10% Deposit

Off Market Manchester Apartments

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Manchester Prices from £219,112

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Leeds Property Predictions for 2021 and Beyond

A major factor a potential Leeds investor will have to consider before investing is to look at future growth of the city. 

Capital growth and rental growth are two of the most important factors for investors. 

Not only does it show an increase in income from rent, but it will also help investors make a huge profit on the purchase price of their property. 

Luckily for Leeds investors, the Leeds property prices trend and future estimations are incredibly optimistic, with the local region set to have some of the biggest growth in the UK over the coming years. 

Property Price Growth by 2025 in UK Regions Property Price Growth by 2025 in UK Regions

According to the latest Savills predictions, Leeds property prices are set to increase by 4.5% in 2021. 

This is before a 6.0% growth is projected for 2022, with an additional 5.5% and 5.0% growth in 2023 and 2024 respectively. 

Finally, in 2025, prices will grow by 4.5%, with an overall projected increase in property prices of 28.2%. 

Only the North West, Liverpool, and Manchester, exceed this growth, with an overall increase of 28.8%. 

It’s a similarly positive outlook for the rental market, too. 

Savills rental market predictions have found that the average UK rent is set for a 17% increase over the next four years, in line with rising wages. 

This is fantastic news for prospective investors, with the ability to earn even more from your buy to let property investment. 

The Top Five Best Areas in Leeds

The prospects for property investment Leeds offer present a good investment option overall, but certain Leeds buy to let postcodes come with varying levels of potential.  

Before you buy Leeds property, find out about the best areas in Leeds to invest with these top five Leeds buy to let hotspots. 

Armley, Hunslet and Beeston 

Population: 78,300 

Average House Price: £169,777 

First up in the best areas in Leeds are the suburbs of Armley, Hunslet and Beeston. 

Located to the West of Leeds, these areas are popular with property investors due to their low house prices.  

These areas mostly consist of terraced houses, which make them ideal for Leeds property investors looking to rent to families. 

Yields in this area are strong thanks to the average property prices of £169,777 – which is lower than the average house price in Leeds.  

In Armley, you can expect prices of just £148,290, while Hunslet and Beeston are slightly more expensive with prices around the £180,000 mark. 

Regeneration plans for the area include the development of a new park which is to be introduced to the South Bank area of Hunslet, helping improve the quality of life for residents and boost the appeal of the area. 

It’s unclear how much house prices will increase in these suburbs. However, with overall growth predictions for Leeds property prices being so high, it’s likely that house prices will see some significant growth in the Armley, Hunslet and Beeston areas. 

Leeds City Centre 

Population: 32,300 (Centre for Cities estimate) 

Average House Price: £206,340 

One of the most popular areas in Leeds for investments, the city centre is amongst the key areas to consider if you’re looking for property to buy in Leeds.  

City living most commonly appeals to students and young professional tenants who want to live close to their workplace, university, and the hustle and bustle of Leeds.  

This means that if you want to target these desirable tenant types, Leeds city centre may be one of the best areas to look to for investments. 

The rental yields on offer are another reason why the city centre is one the best buy to let areas in Leeds.  

Rental yields within the city centre have an average of around 5%, while extensive regeneration schemes suggest that this is one of the best areas in Leeds for capital growth. 

The South Bank Scheme, for instance, includes development plans to extend the city centre and create numerous new homes, shops, offices, and a public park. 

If you’re looking for flats to buy in Leeds city centre, prices are fairly affordable. 

Here, you can expect prices of just £128,661 for a one-bed flat to buy Leeds city centre, with two-bed flats to buy Leeds city centre valued at only £200,686. 

If you want to learn more about flats to buy Leeds city centre, be sure to contact our property specialists today to find out more about the latest offers. 

Headingley 

Population: 32,150 

Average House Price: £166,459 

Another area that is one of the best areas in Leeds is Headingley. 

Headingley is a big student hotspot in Leeds due to Leeds Beckett University campus, making it one of the best buy to let areas in the city for student investment.  

However, the area is also becoming a lot more popular with families and young professional tenants due to the excellent transport links and local amenities available. 

Rental yields have been known to reach as high as 9.8% in Headingley, thanks to incredibly low prices and high rent costs aimed at students.  

In 2018, the Headingley Investment Fund was launched – a scheme created by local residents as a way to promote their local community.  

Other recent regeneration plans include the redevelopment of Headingley Stadium, helping to bring funding and exposure to the area.  

If you’re looking for houses or flats in Leeds to buy for an investment, Headingley is a great option. 

Crossgates and Garforth 

Population: 86,200 

Average House Price: £270,805 

Two separate but nearby areas in Leeds, Garforth and Crossgates, present excellent property investment potential, and are one of the best areas in Leeds. 

Due to strong transport links, these suburbs have a high population of both young professionals and families who are looking to either buy a house in Leeds or rent. 

Yields are likely to reach around 5% across the area, while capital growth potential looks high thanks to regeneration plans like the ELOR project.  

Prices here are far more expensive than other areas in Leeds, though, which is worth keeping in mind if you have a smaller budget. 

This project involves the expansion of Thorpe Park business park, the introduction of a new railway station, and the development of around 5,000 new properties. 

Burley and Hyde Park 

Population: 45,600 

Average House Price: £189,610 

Located between the city centre and Headingley lie two popular inner-city Leeds suburbs. 

The Burley and Hyde Park areas of Leeds are popular spots for student property investment, due to the high number of students living in the area.  

Yields in this area can come to a massive 7.96% but could go even higher for student properties, which are often low priced. 

Being so close to the city centre, it’s likely that property prices in Burley and Hyde Park will increase over time in line with the overall Leeds property price growth of 28.2 % over the next four years. 

For those who want to buy property in Leeds, these inner-city areas in Leeds present fantastic investments solution. 

Armley, Hunslet and Beeston

Armley, Hunslet and Beeston 

Population: 78,300 

Average House Price: £169,777 

First up in the best areas in Leeds are the suburbs of Armley, Hunslet and Beeston. 

Located to the West of Leeds, these areas are popular with property investors due to their low house prices.  

These areas mostly consist of terraced houses, which make them ideal for Leeds property investors looking to rent to families. 

Yields in this area are strong thanks to the average property prices of £169,777 – which is lower than the average house price in Leeds.  

In Armley, you can expect prices of just £148,290, while Hunslet and Beeston are slightly more expensive with prices around the £180,000 mark. 

Regeneration plans for the area include the development of a new park which is to be introduced to the South Bank area of Hunslet, helping improve the quality of life for residents and boost the appeal of the area. 

It’s unclear how much house prices will increase in these suburbs. However, with overall growth predictions for Leeds property prices being so high, it’s likely that house prices will see some significant growth in the Armley, Hunslet and Beeston areas. 

Leeds City Centre

Leeds City Centre 

Population: 32,300 (Centre for Cities estimate) 

Average House Price: £206,340 

One of the most popular areas in Leeds for investments, the city centre is amongst the key areas to consider if you’re looking for property to buy in Leeds.  

City living most commonly appeals to students and young professional tenants who want to live close to their workplace, university, and the hustle and bustle of Leeds.  

This means that if you want to target these desirable tenant types, Leeds city centre may be one of the best areas to look to for investments. 

The rental yields on offer are another reason why the city centre is one the best buy to let areas in Leeds.  

Rental yields within the city centre have an average of around 5%, while extensive regeneration schemes suggest that this is one of the best areas in Leeds for capital growth. 

The South Bank Scheme, for instance, includes development plans to extend the city centre and create numerous new homes, shops, offices, and a public park. 

If you’re looking for flats to buy in Leeds city centre, prices are fairly affordable. 

Here, you can expect prices of just £128,661 for a one-bed flat to buy Leeds city centre, with two-bed flats to buy Leeds city centre valued at only £200,686. 

If you want to learn more about flats to buy Leeds city centre, be sure to contact our property specialists today to find out more about the latest offers. 

Headingley

Headingley 

Population: 32,150 

Average House Price: £166,459 

Another area that is one of the best areas in Leeds is Headingley. 

Headingley is a big student hotspot in Leeds due to Leeds Beckett University campus, making it one of the best buy to let areas in the city for student investment.  

However, the area is also becoming a lot more popular with families and young professional tenants due to the excellent transport links and local amenities available. 

Rental yields have been known to reach as high as 9.8% in Headingley, thanks to incredibly low prices and high rent costs aimed at students.  

In 2018, the Headingley Investment Fund was launched – a scheme created by local residents as a way to promote their local community.  

Other recent regeneration plans include the redevelopment of Headingley Stadium, helping to bring funding and exposure to the area.  

If you’re looking for houses or flats in Leeds to buy for an investment, Headingley is a great option. 

Crossgates and Garforth

Crossgates and Garforth 

Population: 86,200 

Average House Price: £270,805 

Two separate but nearby areas in Leeds, Garforth and Crossgates, present excellent property investment potential, and are one of the best areas in Leeds. 

Due to strong transport links, these suburbs have a high population of both young professionals and families who are looking to either buy a house in Leeds or rent. 

Yields are likely to reach around 5% across the area, while capital growth potential looks high thanks to regeneration plans like the ELOR project.  

Prices here are far more expensive than other areas in Leeds, though, which is worth keeping in mind if you have a smaller budget. 

This project involves the expansion of Thorpe Park business park, the introduction of a new railway station, and the development of around 5,000 new properties. 

Burley and Hyde Park

Burley and Hyde Park 

Population: 45,600 

Average House Price: £189,610 

Located between the city centre and Headingley lie two popular inner-city Leeds suburbs. 

The Burley and Hyde Park areas of Leeds are popular spots for student property investment, due to the high number of students living in the area.  

Yields in this area can come to a massive 7.96% but could go even higher for student properties, which are often low priced. 

Being so close to the city centre, it’s likely that property prices in Burley and Hyde Park will increase over time in line with the overall Leeds property price growth of 28.2 % over the next four years. 

For those who want to buy property in Leeds, these inner-city areas in Leeds present fantastic investments solution. 

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How Does the Leeds Property Market Compare to Other UK Cities?

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We hope you enjoyed our guide to property investment Leeds. 

Property investment Leeds offers is some of the best in the UK, but just falls short of rivals like Manchester and Liverpool. 

If you’re interested in learning more about these two cities, or want to make an investment, then check out our residential investments for sale in the UK. 

Here at RWinvest, we offer some of the best properties in the UK. 

Founded in 2004, we have helped over 75,000 people make the investment of their dreams. 

With a property portfolio worth over £1bn, and over 951 five-star reviews, you can feel assured our name is one of the best in the business. 

And if that isn’t enough to sway you, we were crowned the North West’s best property business in 2020, and have recently been nominated as Business of the Year in the prestigious Echo Regional Business Awards. 

You can invest in our Liverpool and Manchester properties from just £50k, and get access to significant returns of up to 8%. 

If this sounds good to you, then be sure to contact our property specialists today and find your perfect residential or student investment. 

DISCLAIMER: This guide to buy to let in Leeds was last updated in July 2021Property statistics frequently change so this may mean that certain statistics have changed by the time you read this guide. 

3 Units Remaining

The Summit

Stylish Baltic Triangle Living

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

10% Deposit

Off Market Manchester Apartments

Premium Residential Investment

Manchester Prices from £219,112

5.5% NET Rental Return

10% Deposit Required