Leeds' £1.9 Billion Transformation: An Analyst's Guide

Good morning.

“Follow where the money is flowing”.

Yep, I know, we've all heard some version of this, right?

But when I first came across this concept, I couldn’t help but wonder—how do you actually follow the money?

Its’ one of those saying that people just randomly say, but never really take the time to explain what it really means.

I’ll share a tactic that one investor shared with me when he decided to venture into Newcastle some years back and began he’s property empire and he’s tactic has stuck with me for years.

But before I do, in today's edition of The Data Capital, we're diving a little bit deeper and analysing how do you follow the money and what signs can we see that some of the northern cities in the UK are attracting.

So, let's follow the money trail and see where it leads us too.

Buy-To-Let Mortgage Rates

OTHER NEWS

1. Interest Rate Adjustments

   The Bank of England has reduced interest rates from 4.75% to 4.5% to stimulate the UK's sluggish economy.

2. Legislative Reforms Impacting Landlords

   The proposed Renters' Rights Bill seeks to ban landlords from requesting more than one month's rent in advance.

3. Decline in Buy-to-Let Investments

   Recent data indicates a significant decrease in buy-to-let property purchases.
   

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Leeds' £1.9 Billion Transformation: An Analyst's Guide

Hey,

Remember when we talked about ‘following the money,’ and I mentioned a property investor I spent an afternoon with some years back?

At the time, he owned 20 properties in Newcastle, and he shared with me those famous words: "Follow the money."

I was fortunate to get an explanation of what he meant and how he applied this principle. His approach was simple: when considering an area for investment, he would check how many Starbucks were in the vicinity.

Yes, Starbucks!

At first, I was skeptical. What does Starbucks have to do with property investing?

Then it all started to make sense.

You see, Starbucks doesn’t just set up shop anywhere. Before opening a location, they conduct extensive research—backed by large budgets—to identify areas with high growth potential. If they deem an area investable, they move in.

Follow the money. It’s as simple as that.

Now, a few years later, I’m not saying you should only invest in areas with a Starbucks. But let’s apply the same principle. Large organisations and governments—both local and national—spend millions analysing, researching, and gathering insights on specific areas.

They have far bigger budgets than individual buy-to-let investors, but by tracking where these massive budgets are being spent and where large organisations are establishing themselves, we can follow the money.

With that in mind, let’s dive into some key renovations and investments taking place right now—giving us clues about where the money is flowing.

And I’ll share three bite-sized takeaways at the end that you can keep as your go-to investment principles.

A City on the Rise

Let's talk numbers for a moment. Leeds City Council's data shows planned investments totalling £1.9 billion.

The South Bank Regeneration: A Game Changer

At the heart of Leeds' transformation is the ambitious South Bank regeneration project.

This expansive development aims to double the size and economic impact of Leeds city centre, creating a mixed-use area that will fundamentally reshape the urban landscape.

With plans for 8,000 new homes and 35,000 new jobs, the South Bank project is not just changing the face of Leeds - it's creating a new beating heart for the city.

For investors, this presents a golden opportunity. As the project progresses towards its mid-2020s completion date, we can expect to see a surge in property values in the surrounding areas.

The creation of new community-focused spaces, improved infrastructure, and an influx of businesses will drive up demand for both residential and commercial properties.

Transport Investments: The Leeds Station Upgrade

Speaking of transport, the new £26.5 million Leeds Station improvement project is worth watching.

The data shows that properties near transport hubs in Leeds have historically seen above-average value appreciation. With the station being a key gateway between London and the North, these improvements could amplify that trend.

The Innovation Arc: The Future of Growth

But here's what really got my attention when analysing the numbers: the Innovation Arc. This £450 million development plan connects the South Bank, city center, and the universities.

It's set to create an innovation district with healthcare, technology, and research facilities. Looking at similar developments in Manchester and Birmingham, these innovation corridors typically lead to a 15-20% premium on nearby residential properties.

Wellington Place: A Stable Rental Demand Hub

The Wellington Place development is another one to watch. This £750 million project is already showing strong returns, with Phase 2 underway.

The government's commitment to relocate 6,000 civil service jobs here creates a stable rental demand foundation - something we don't always see with large-scale developments.

Kirkstall Forge: The Strength of Mixed-Use Developments

In terms of residential developments, the Kirkstall Forge project got my attention. The data here is interesting:

• £400 million investment creating 1,050 new homes, but it's the mixed-use aspect that makes it compelling.

• The development includes 300,000 sq ft of office space and 100,000 sq ft of retail, leisure, and community facilities.

• Our analysis shows that these mixed-use developments typically outperform single-use sites by 12-18% in terms of capital appreciation from the IPF report.

Looking at the impact value, our models suggest these developments could drive a 7-9% increase in property values across central Leeds over the next 3-5 years, with some hotspots potentially seeing 12-15% growth.

The South Bank area, in particular, shows strong potential for above-average returns.

Remember, though, that we're seeing varying timelines for these projects, with completion dates ranging from 2024 to 2028.

This staggered delivery actually works in investors' favor, as it tends to create multiple waves of value uplift rather than a single spike.

From an analyst's perspective, what makes Leeds particularly interesting right now is the combination of public and private investment. The public sector commitment helps de-risk private investment, while the scale of private sector involvement suggests strong market confidence.

BOTTOM LINE

🔥 Follow the Money, Not Just the Hype 💰💡
Big corporations and governments don’t just throw money around—they spend millions researching where growth is headed. Instead of guessing, follow their lead.

If they’re committing serious resources to an area, it’s a strong signal that something big is happening.

🚆 Infrastructure = Higher Property Value 📈🏡
Transport hubs, innovation districts, and mixed-use developments don’t just look good on paper—they boost property values by 12-20%.

If you see major infrastructure projects in the works, that’s your cue to pay attention.

⏳ Staggered Growth = More Chances to Invest 🔄💼
Big projects don’t happen overnight. They roll out over years, creating multiple waves of opportunity.

So, even if you feel like you’ve missed the boat, there’s still time to jump in and ride the next wave of value growth.

TO DO LIST

✅ Art and culture: Leeds Art Gallery and Henry Moore Institute

✅ Valentines Day in Yorkshire

✅ O2 Academy in Leeds

NEXT WEEK……..

🔜 Unveiling Leeds' Top Local Amenities & Career Opportunities!

We’re showcasing prime investment properties in Leeds—featuring key amenities, job prospects, and what makes these locations ideal for investors. 👀🏙️

🚀 Stay tuned! And if you’ve enjoyed this edition, Share The Data Capital with your friends and help them turn data into wealth.📩💡