There are so many reasons to consider Sheffield property investment, but to help give you a better idea of why you should invest in property in Sheffield, here are five benefits of Sheffield buy-to-let.
Invest in Sheffield’s Thriving University Scene
If you’re looking to buy a student rental property, Sheffield is definitely a UK city to consider.
Like many cities up North, Sheffield is widely known as a top university city.
Boasting first-class institutions such as the University of Sheffield and Sheffield Hallam, the city is populated by around 63,000 students.
The student scene of Sheffield has undoubtedly played an important role in the development of the city, especially when it comes to student property investment in Sheffield.
Any city with a large student population will naturally develop a demand for property in the form of student accommodation.
Many of those involved with Sheffield property investment utilise this demand by purchasing student properties in Sheffield, and by doing so, can generate some attractive returns.
Student property is generally more affordable to purchase than residential, which is why student accommodation investment is seen as one of the best options for investors with a lower budget and a great Sheffield investment for first-time investors.
Invest in Sheffield’s Culture
From music to art to theatre, Sheffield has a dynamic and creative city culture.
Sheffield has been on the cutting edge of the UK music scene with bands like The Arctic Monkeys, Bring Me The Horizon, Pulp, and Def Leppard.
Sheffield’s independent creative drive can be seen in the surprisingly high number of specialist record labels.
As well as this, there are plenty of performance venues, music festivals and rehearsal spaces too.
Sheffield has a vibrant art scene, with a range of contemporary and historic galleries.
The Millennium Gallery is one of the most visited tourist attractions in the North of England.
As well as showcasing the city’s heritage, the Millennium Gallery hosts many current exhibitions.
The Graves Gallery houses a stunning collection of fine art, and the Site Gallery is undergoing a major redevelopment that will treble the size of this art space.
An increasing number of creative professionals are also moving to the area and boosting the need for Sheffield property investment more than ever.
The city has many historical and unique theatres, like the Crucible Theatre, Lyceum Theatre, Lantern Theatre and the Crucible Studio.
Hosting a wide range of productions, from musicals to cutting-edge modern theatre, Sheffield’s theatres are a vital part of the city’s creative culture.
Sheffield’s defiant northern spirit is a common theme in the art, music and theatre that it produces.
Invest in Sheffield’s Growing Population of Young Professionals
Sheffield has a large and diverse population.
In 2023, the population of Sheffield has reached 746,000 per Macrotrends, making it England’s third-largest district authority.
Over recent years, there’s been a significant increase in the number of 20 to 24-year-olds living in Sheffield, which is good news for those involved with Sheffield investment.
With buy-to-let, one of the main tenant groups tends to be young professionals, which is why a higher population of young people living in an area is such a good sign when it comes to UK investments and the rental market – boosting the appeal of Sheffield buy to let.
Part of the reason behind Sheffield’s growing young population is likely the fantastic business opportunities available.
Sheffield has a booming tech scene, start-up scene, and is home to some big business names including PlusNet and B. Braun Medical.
In 2023, Sheffield was recognised as being home to 6 of the Yorkshire region’s fastest-growing companies by Ward Hadaway, more than other cities in the region like York.
With more graduates entering the city regularly, and a forecast for up to 70,000 jobs to open up in Sheffield over the next ten years, Sheffield property investment is likely to remain popular for many years to come.
Invest in Sheffield for Capital Growth
For anyone investing in UK property, capital growth is one of the key components of a good investment.
Areas with solid capital growth rates are crucial if you want to maximise your returns when you choose to sell your property.
The fact that Sheffield investment offers such strong potential for capital growth is another reason to consider investing in a rental property in Sheffield.
In a report from Zoopla in 2019, the top UK regions for house price growth have been in the North of England, the Midlands, Scotland, and Wales.
This growth has continued, as in 2023 This is Money reported that Sheffield had seen a 77% increase in house prices since 2013, making it one of the fastest-growing markets in the UK.
The average property price in Sheffield has also risen massively in the last five years, up 36.33%, using data from the Land Registry.
Predictions for the future are looking strong, too, with Yorkshire and the Humber expected to see property prices grow by 11.7% over the next five years by Savills.
If you’re a property investor looking to make large returns from your rental property, Sheffield buy-to-let is definitely something to consider.
Invest in Sheffield for Rental Yields
While property prices may be growing in Sheffield, this Northern city remains one of the most affordable areas in the UK for buying property.
Sheffield property investment opportunities are perfect for investors who want to make a stable and lucrative buy-to-let purchase without spending too much.
According to Zoopla, the average asking price for a semi-detached house in Sheffield is £240,804.
Because of the affordability of property in Sheffield and a high level of rental demand, the city also generates some high rental yields.
The S1 postcode, for instance, ranked among Totally Money’s list of top buy-to-let postcodes, with a 7.57% yield.
As well as this, the average rental yields for Sheffield are around 4.65%, according to a combination of data from the Land Registry, home.co.uk and Varbes. This will bring you a solid and consistent return year on year, although you can find much higher yields if you invest in some of the best areas in Sheffield.
While this is lower than Liverpool’s average yield of 6.39%, it’s still an attractive rate for those looking to make some significant rental income.
Liverpool and Manchester are generally considered the best places to invest in UK property, making Sheffield’s competitive yields even more impressive.