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The RWinvest Team
Widely considered one of the best places to invest in property, property investment Leeds has shown some of the strongest growth seen in the UK property market over the last 12 months.
With sky-high rental yields and considerable capital growth, the West Yorkshire city is a popular choice for buy to let landlords from across the UK.
If you’re thinking of making a Leeds property investment, want to buy investments in Leeds, or just want to learn more about the city, then this is the perfect guide for you.
Here, you’ll find topics like:
So, if you want to learn all about Leeds buy to let investing in 2022, then keep reading this complete guide.
Chapter 1: Why Invest in Leeds?
Chapter 2: Leeds Property Market 2021 Analysed
Chapter 1 of our guide will cover six reasons why investing in Leeds is a good idea in 2022.
We’ll be taking a look at the latest urban regeneration initiatives in the city, affordability of house prices, and more.
Key topics:
The question on a lot of property investors lips is – ‘why invest in Leeds?’
Crowned the best city to live and work in the North of England in 2021, while also named the best city for parks and playgrounds in 2020, Leeds property investment is one of the standout UK cities in 2022.
Rated as one of the hottest sales markets in the UK by Zoopla, the Leeds property market is estimated to be worth a staggering £60 billion and is generating some of the best returns possible over the last 12 months.
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 buy to let Leeds offers.
One of the primary reasons behind Leeds property investment’s reputation as one of the best areas to invest in property has been its affordability.
According to the latest property data from the Land Registry, the average house price in Leeds is valued at just £211,437 as of December 2021.
For comparison, that is 27.67% cheaper than the UK average, with detached houses, semi-detached houses, terraced houses, and flats, all cheaper in Leeds than the UK average.
The average house prices in Leeds show that rental property in the area can compete with the most prominent cities and offers good value property in Leeds.
Due to the affordable property prices seen in investment in Leeds, rental returns in the city are also excellent.
Those who find buy to let property in Leeds will benefit from average gross rental yields of 8.97%, according to the latest Zoopla rental price data from December 2021.
These statistics stack up incredibly favourably when you compare it to other cities in the UK.
Looking at the data, the Leeds city region offers the second-highest average rental yields in the UK, while also at a competitive price point.
While it’s important to note that rental yields aren’t the be-all-end-all, with a lot of other factors to consider like rental demand and house price growth – as you will see later in this guide, Leeds buy to let ticks these other boxes too.
Overall, Leeds buy to let offers a compelling blend of affordability and rental yields for investors.
Completed and Tenanted Student Accommodation
Central Liverpool Location
6% Projected Rental Returns
Up to 34% Below Local Comparable
Completed and Tenanted Student Accommodation
Central Liverpool Location
6% Projected Rental Returns
Up to 34% Below Local Comparable
A big appeal behind property investment in Leeds is the massive house price growth set for the coming years.
According to the latest Savills predictions, the Yorkshire and the Humber region is set to see house prices soar by 18.8% by 2026 – this is the joint-highest predicted growth rate in the UK alongside the North West.
Looking back at the past year, it’s clear that this growth is unsurprising.
Over the last 12 months, property prices in Leeds are 7.06% higher than a year prior.
This Leeds property prices trend has continued throughout the last two years, too, with prices rising by 13.18% since the start of the Covid-19 pandemic.
This means that despite the pressures of three national lockdowns caused by Covid-19, the average Leeds property price has increased in value by £24,617 since the start of the first lockdown.
Investments in Leeds are proving a hit in the city’s rental market thanks to surging demand over the last two years.
A report from Zoopla in June 2021 found that Yorkshire had the largest annual growth of rental demand in the UK, recording a 3% rise.
This has had a strong impact on rental prices in the region, with the HomeLet rental index recording a whopping 7.7% rise in Leeds rental prices over the last 12 months – for comparison that is higher than the South East, South West, and East Midlands.
These figures are unsurprising when you consider the rising population of the Leeds region.
Population statistics from World Population Review estimate that the Leeds population stands at around 521,148 in 2021.
A report by the Centre for Cities found that the population in Leeds has grown at seven times the rate of London in recent decades, with an increase of 151%.
Not only this, but the level of employment in Leeds is also increasing, with a 34% rise in employment recorded in 2018.
This demand for property is coming from a wide range of people such as young professionals working in the city, young families relocating to the area, and students attending the many universities Leeds has to offer – all making buy to let Leeds investments a strong choice in 2022.
While residential property is always a popular choice amongst UK property investors, if you want a good value property with high returns, then student accommodation is an excellent choice.
Luckily for prospective Leeds property investors, the city of Leeds offers plenty of opportunities for student investment property for sale thanks to a thriving young population.
Home to one of the largest populations of students in the UK, and widely considered one of the best student cities in the country, Leeds property investment in student accommodation is certainly a worthwhile venture.
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 2021 seeing a record number of university applicants across UK cities, the future definitely looks bright for investments in student cities like Leeds. Check out our ultimate student property investment guide to learn more on this.
The appeal of Leeds buy to let has come a long way over the years thanks to huge urban regeneration in the city.
There are plenty of regeneration opportunities in Leeds, improving the appeal of investments in the city.
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, showing an exciting future for investment in Leeds.
Other projects in the city include huge £3m overhaul of Leeds City Station, £8m transformation of City park, and £7m spent on the Temple Green Park and Ride.
With so much work ongoing in North Leeds suburbs, Leeds city centre, and West Leeds, there is a huge amount of new affordable housing and buy to let property opportunities in Leeds.
To learn more about the urban regeneration in the city, you can check out our list of the top 7 best urban regeneration areas in the UK.
In Chapter 2 of our guide, we’ll be taking a look at the 2021 Leeds buy to let property market in a bit more detail.
Here, you’ll find an analysis of Leeds property prices over the last few decades, population statistics of Leeds property investment, and an in-depth look at the latest property price predictions for this Yorkshire city.
Key topics:
Market Summary:
For any investor looking to make a lucrative buy to let investment, capital growth (the increase in a property’s value over time) is key to success.
And while Leeds may not have the stand-out growth figures seen in other major UK cities over the last two years, it has represented a sizeable and consistent rate of growth since the start of the Covid-19 pandemic in March 2020.
Looking at the graph, you can see that the Leeds property prices trend has been a consistent growth, with house prices rising by 13.18% since March 2020.
These levels of growth have been seen consistently over the past few decades.
Since 2016, property prices in Leeds have increased by £40,973, or a percentage increase of 24.04%.
And over the past 20 years, prices have increased in value by a whopping 200.25% since 2001.
While these growth rates are certainly impressive, they fall short of other standout locations like Manchester and Liverpool.
As you can see from the table, Leeds isn’t the standout location when it comes to capital growth, lagging behind other locations over a 12-month, five-year, and 20-year period.
On the surface, this may mean you should focus on other cities over property investment in Leeds if you are targeting capital growth.
However, if you consider that the Yorkshire region has the highest predicted growth rate alongside the North West over the next five years, and you may feel more confident in the future of a Leeds buy to let property investment.
Market Summary:
When it comes to Leeds property investment, the city’s rental market is one of the most thriving in the UK.
Currently, the average Leeds rent is £1,580 PCM, according to Zoopla, which is over £500 higher than the national average of £1,059.
In the last year alone, rental values in the Yorkshire region has increased by 7.7%, and this is likely stemming from the massive demand seen in the city.
This demand is caused by the rising Leeds population, which is significantly made up of young people.
According to statistics from the ONS, around 30% of the population are aged 15-34.
This is vital for the future of a city’s rental market, as young people make up the majority of renters.
For this reason, investors should aim to target cities with a primarily younger population when targeting buy to let.
So, why is the Leeds population growing at such a strong level?
Well, primarily, the biggest attraction to Leeds for young people, aside from quality universities, is the exceptional business scene.
Leeds is considered one of the UK’s biggest business cities outside of London.
Home to a diverse mix of businesses, this Yorkshire hotspot has something for everyone.
Consequently, leading employers are also flocking to the city to take advantage of this influx of new talent.
With more business opportunities comes an influx of young professionals that need high-quality, well-located rental properties.
To cater to this demand, property companies are offering new residential developments for investors seeking an investment property for sale in Leeds that offers regular rental income.
Completed and Tenanted Student Accommodation
Central Liverpool Location
6% Projected Rental Returns
Up to 34% Below Local Comparable
Completed and Tenanted Student Accommodation
Central Liverpool Location
6% Projected Rental Returns
Up to 34% Below Local Comparable
There are over 32,000 VAT-registered businesses in Leeds, with a mixture of large, small, and medium-sized enterprises based in the city.
Leeds is also home to a number of NHS offices, including NHS England, and houses more than 30 national and international banks, creating employment for over 13,000 people.
Thanks to the strength of its business scene, Leeds generates 5% of England’s total economic output of £60.5 billion and has an economy that’s larger than nine European countries.
A number of big names in business have a headquarters based in this city, including Asda Walmart, GHD, Jet2.com, and more.
More high-profile businesses are turning their attention towards Leeds and launching offices in the area.
Channel 4 opened its second headquarters in Leeds, which reached completion in late 2020 and helped to employ hundreds of employees.
The industries that Leeds is most known for are the tech sector, the finance sector, the manufacturing industry, and the creative industries.
Leeds has the second-largest financial sector outside of London, along with being ranked one of the UK’s top creative cities and boasting a digital tech sector that’s worth £1 billion.
Leeds city region is a hotspot for financial and professional services and has been coined the Financial Centre for Excellence by UK Trade & Investment.
This has helped to establish the financial sector of the city, as well as neighbouring cities such as Bradford, Halifax and York.
A major factor a potential Leeds investor will have to consider before investing is to look at the 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.
According to the latest Savills predictions, Leeds property prices are set to increase by 4.5% in 2022.
This is before a 4.0% growth is projected for 2022, with an additional 3.5% and 3.0% growth in 2024 and 2025 respectively.
Finally, in 2026, prices will grow by 2.5%, with an overall projected increase in property prices of 18.8%.
This is the joint-highest prediction in the UK alongside the North West and is 13.2% higher than London and 5.7% higher than the UK average.
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 19.9% increase by 2026, in line with rising wages.
This is fantastic news for prospective buy to let Leeds investors, with the ability to earn even more from your buy to let property investment.
So, we know that those who buy property in Leeds benefit from things like high yields, positive growth and strong demand, but how do the qualities of the Leeds property market compare to property investment opportunities in other UK cities?
The UK capital of London may seem like an unfair comparison for Leeds.
After all, the economic strength of London is unmatched in the UK, which generates around one-quarter of the UK’s total GDP.
Moreover, it also attracts more foreign investment than any other UK city, with Statista finding that London had more foreign direct investment projects in 2018 than every other UK city combined.
In fact, only Manchester came close in second place.
Despite these figures, though, the London property market and its economy have struggled in recent years.
The huge house prices in London have proved to be unsustainable, with frequent drops in property prices over the last five years.
From the latest data, you can see that Leeds is superior to the London market in most measurements.
Property prices are far more affordable than the capital, with far higher rental yields, to boot.
Moreover, the continued growth of the Leeds market is in direct odds with the London market.
Prices in the capital have increased by just 7.52% since 2016, while Leeds prices have increased by 24.04% over the same period.
With both cities located in the Northern Powerhouse, this comparison is likely at the forefront of investors thinking.
Over the past few years, Manchester has gained a reputation as the ultimate buy to let hotspot.
Not only does the city boast excellent rental yields and affordable property prices, but it also has some of the highest property growth statistics around.
The Leeds vs Manchester comparison is less favourable.
Property prices are not only more expensive in Leeds, but they also lose in both rental yields and capital growth rates.
Those who invest in an apartment or buy a house in Leeds can also expect slower property growth than in the North West.
If you’re looking to learn more about Manchester property investment and why it might be the best place to invest in the UK in 2022, be sure to read our detailed guide for more information.
Like Manchester, it’s hard to choose Leeds over this next North West city.
The city of Liverpool has exploded in popularity in recent years, with 2021 being a ground-breaking year for the city.
Property prices have soared in 2020 and 2021, with average prices now 15.42% higher than a year prior.
While Leeds boasts higher rental yields, it falls short in every other category, falling behind the capital growth seen in Liverpool over a 12-month and five-year period.
It should also be noted that while Liverpool’s average returns are less than Leeds, Liverpool property investment is well-known for offering some of the highest rental yields in the UK.
According to TotallyMoney, the L1 postcode offered the highest yields in the UK in 2020, with the potential to earn 10% returns.
Here at RWinvest, you can also get access to assured rental yields of 8% on some of our Liverpool properties.
In the penultimate chapter of the property investment Leeds guide, we’ll be looking at the best areas to buy property in Leeds.
We will be breaking down the nice areas of Leeds and good areas to live in Leeds with a look at the average house prices and gross rental yields seen in the areas.
Key Topics:
Due to huge regional variations in property investment UK areas, not every city offers the same level of investment returns.
This is even true when looking at individual cities, with regions in the city offering different levels of rental demand, house prices, and rental returns.
With this in mind, we’ve run the numbers and have worked out the top five best areas in Leeds for buy to let in 2022.
Below, you will find a look at the capital growth, rental returns, and house prices seen in the most popular Leeds buy to let areas.
So, if you’re looking at investment property for sale Leeds, or are looking for property to buy in Leeds, then this section is a must-read.
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.
With affordable property prices of just £187,879 and returns of nearly 6%, Leeds city centre is offering a top prospect in 2022.
If you’re looking for flats to buy in Leeds city centre, prices are really affordable, t00.
Here, you can expect prices of just £129,764 for a one-bed flat to buy Leeds city centre, with two-bed flats to buy Leeds city centre valued at only £205,898.
factoring in this affordability with the upcoming South Bank scheme and a rising Leeds city centre population and you have a recipe for success in this buy to let hotspot.
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.
Located to the West of Leeds, Armley is a popular location for Leeds property investors due to low house prices.
Mostly consisting of terraced houses, ideal for Leeds property investors looking to rent to families, you can find a home in Armley from just £139,623
Yields in this area are strong thanks to the average property prices of £139,623 – which is lower than the average house price in Leeds.
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 Armley over the coming years.
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 11.74% in Headingley, thanks to incredibly 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.
Two separate but nearby areas in Leeds, Garforth and Crossgates, present excellent property investment potential and are some 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.
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.
Prices here are far more expensive than other areas in Leeds, though, which is worth keeping in mind if you have a smaller budget.
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 8.06% 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 18.8 % over the next four years.
For those who want to buy property in Leeds, these inner-city areas in Leeds present a fantastic investments solution.
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.
With affordable property prices of just £187,879 and returns of nearly 6%, Leeds city centre is offering a top prospect in 2022.
If you’re looking for flats to buy in Leeds city centre, prices are really affordable, t00.
Here, you can expect prices of just £129,764 for a one-bed flat to buy Leeds city centre, with two-bed flats to buy Leeds city centre valued at only £205,898.
factoring in this affordability with the upcoming South Bank scheme and a rising Leeds city centre population and you have a recipe for success in this buy to let hotspot.
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.
Located to the West of Leeds, Armley is a popular location for Leeds property investors due to low house prices.
Mostly consisting of terraced houses, ideal for Leeds property investors looking to rent to families, you can find a home in Armley from just £139,623
Yields in this area are strong thanks to the average property prices of £139,623 – which is lower than the average house price in Leeds.
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 Armley over the coming years.
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 11.74% in Headingley, thanks to incredibly 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.
Two separate but nearby areas in Leeds, Garforth and Crossgates, present excellent property investment potential and are some 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.
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.
Prices here are far more expensive than other areas in Leeds, though, which is worth keeping in mind if you have a smaller budget.
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 8.06% 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 18.8 % over the next four years.
For those who want to buy property in Leeds, these inner-city areas in Leeds present a fantastic investments solution.
The final chapter of our Leeds property investment guide is perfect for those considering buying property in Leeds 2022.
Here, you’ll find a look at investment property Leeds and investments in Leeds available from RWinvest.
You will also be able to learn more about RWinvest and the services we offer in Leeds property investment.
Keep your eye on this section as we will update it whenever we get newly available properties to buy in Leeds.
Key Topics:
After one of the most successful years in the UK property market, RWinvest has sold out of available properties in the Leeds area.
Not to worry, though, as we have some fantastic investment properties available in other top UK locations like Manchester, Liverpool, and Luton.
Check the links below to find the latest residential investments for sale in the UK.
We hope you enjoyed our guide to property investment Leeds.
If you’re interested in making a Leeds investment, then RWinvest is the perfect company for you.
Named the North West’s Best Property Business in 2020, RWinvest is a property investment company with over 17 years of experience in residential and student property.
With a property portfolio worth over £1bn, and over 1,000 five-star reviews, you can feel assured that you’re making one of the best property investments possible in 2022.
Our properties start from just £38,950 with huge returns available at up to 8% NET.
If this sounds good to you, then be sure to contact our property specialists today and find your perfect residential or student investment.
Alternatively, be sure to check out our news page to keep up to date with the latest property investment news in 2022.
DISCLAIMER: This guide to buy to let in Leeds was last updated in December 2021. Property statistics frequently change so this may mean that certain statistics have changed by the time you read this guide.
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