Sheffield Property Investment

Daniel Williams

Senior Property Writer

5 Min Read

Sheffield property investment has grown more and more popular over the past decade.

From its university scene to its industrial legacy, Sheffield is known for its rich Northern history, and the city continues to redevelop and improve to this day.

With a range of major regeneration projects in-store and a growing population, more and more people are choosing Sheffield as one of the best places to invest their money.

If you’re interested in learning more about Sheffield buy to let and whether this is the right area for you to invest in property in the UK, read our guide to Sheffield property investment.

Here, we’ll talk you through the history of the city, reasons to consider Sheffield investment, and advice on where to invest in Sheffield.

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What’s the History of Sheffield?

The city of Sheffield is steeped in history, with links to metalworking that go back centuries.

Steel is synonymous with Sheffield. During and after the Industrial Revolution, Sheffield became a capital of the industry.

Huge mills and vast factories were built in the surrounding area. During the Second World War, Sheffield became a vital hub for the production of armaments, resulting in the targeted bombing of the city.

After this period, employment remained high, with a strong industrial economy.

Unfortunately, as the steel industry went into decline, it pulled Sheffield with it, seeing many famous firms go under and their employees left to try and find a new start.

After years of decline, Sheffield used its entrepreneurial spirit and determination to attract significant partnerships in the late 90s and early 00s.

Over the past two decades, Sheffield has seen a dramatic resurgence, with significant investment and regeneration throughout the city.

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Why Invest in Sheffield?

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, are able to 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 also hosts a wide range of 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 mid-2016, the population of Sheffield reached 575,400 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 down to 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 2014, Sheffield was recognised as being home to 19 of the Yorkshire region’s biggest companies.

With more graduates entering the city on a regular basis, 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 strong 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.

Since 2016, cities in these regions had seen some of the fastest growth, with house prices in Sheffield having risen by 11%.

The average property price in Sheffield has also risen massively in the last five years, up 20.46%.

Predictions for the future are looking strong, too, with Yorkshire and the Humber expected to see property prices grow by 21.6% over the next five years.

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 still 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 two-bedroom flat in Sheffield is £155,243, while a one-bedroom flat average’s out at just £102,934.

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 7.83% yield.

Average rental yields for Sheffield are around 5.23%.

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, along with Manchester, is generally considered the best place to invest in property UK, which makes Sheffield’s competitive yields even more impressive.

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The Top 4 Investment Areas of Sheffield

So, what are the best areas in Sheffield for investments?

If you’re thinking of buying an investment property in Sheffield, it’s important to be aware of the different areas in the city and the varying potential they can offer.

To help you find the best place to invest in Sheffield, here are five of the top Sheffield property investment hotspots.

Sheffield City Centre

Population: 30,000

Average House Price: £139,921

Much like many other major cities, the city centre is one of the best areas in Sheffield to invest in as properties in a central location are often considered ideal for buy to let investments.

The best types of investments for those buying property in Sheffield city centre are residential and student properties.

This is because the city centre is such a desirable place to live for both these tenant groups.

Young professionals want to live in a property that’s close to their workplace and transport links, while students want to be able to walk to and from their university campus.

Rental yields of 7.49% are available within the city centre, offering some of the best investment opportunities in Sheffield.

South East Sheffield

Population: 158,000

Average House Price: £115,290 (S2 postcode)

Home to Sheffield suburbs like Arbourthorne and Norfolk Park, the South East area of the city is one of the best Sheffield postcode areas.

Home to the S2 postcode which generates massive yields of around 10.54%, the South East area tends to offer a lot of variety in prices.

With many towns considered ‘nice areas in Sheffield’, the population of South East Sheffield is mostly families.

However, some areas such as Heeley are becoming more up and coming areas in Sheffield for a younger crowd.

According to Zoopla, average asking prices can be pretty low in South East Sheffield depending on the property type and area.

East Sheffield

Population: 133,500

Average House Price: £141,250 (S5 postcode)

In the East part of the city, investors can find some of the most affordable Sheffield property investment opportunities.

East Sheffield is mainly made up of traditional terraced houses and is home to popular areas such as Parsons Cross.

While many of the towns in East Sheffield are considered more run-down than other parts of the city, investors looking to make attractive yields shouldn’t overlook the potential on offer.

Boasting the S2 and S5 Sheffield postcodes, investors can generate yields of up to 10.54%, making this one of the best places to invest in Sheffield.

Whirlow / Eccleshall

Population: 19,211 (2007 est.)

Average House Price: £338,036 (S11 postcode)

Located to the South West of the city, Eccleshall in S11 is one of the most up and coming areas in Sheffield.

This Sheffield area is close to the desirable and affluent suburbs of Dore and Fullwood, but offers slightly more affordable property prices.

The many bars and restaurants available make this one of the most popular Sheffield postcodes for students and young professionals.

Rental yields in the S11 postcode can reach up to 4.0%, while the trendy and cosmopolitan nature of the area means that investors are likely to benefit from some attractive capital growth returns.

Sheffield is a city that perfectly demonstrates a fusion of urban and rural that is uniquely English.

Sarah Roberts, RWinvest

Become a Part of Sheffield Investment

There has been a steady increase in Sheffield investment over the past decades.

More and more businesses are choosing to invest in Sheffield, and the city’s reputation as a key player in the Northern Powerhouse has played a big role in the city becoming one of the UK’s best places to invest money alongside Liverpool and Manchester.

If you’re considering becoming a part of Sheffield’s growing investment, we hope this Sheffield property guide has provided you with all the right facts and information.

Invest in the UK With RWinvest Investment Opportunities

At RWinvest, we offer a range of lucrative investment opportunities in the best places to invest money in the UK.

If you want to make a Manchester or Liverpool property investment and grow your investment portfolio while generating yields of up to 8%, get in touch with us today and we can guide you through our current options.

About Our Data

This guide was updated in April 2021. Figures and statistics shown are subject to change. The information used in this Sheffield property investment guide has been taken from a range of different online sources including Zoopla, UK House Price Index, Totally Money, and more.

Daniel Williams

Senior Property Writer

Daniel Williams is a senior property writer at RWinvest. Regularly publishing in-depth articles on topics such as the best investment areas in the UK and guides on how to invest, Daniel has a keen eye for statistics and analysing property market changes.

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