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Leeds Property Market Insight
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Good morning. In this edition, it’s all about the insights…….does the data back the hype.
Discover the postcodes delivering double-digit rental yields, the regeneration projects reshaping the cityscape, and the data-backed insights that could transform your portfolio.
And here’s the kicker—what makes Leeds’ property market a standout even during tough economic times? Stick around to find out. Let’s turn data into wealth. 🚀
Let’s jump in!
BUY-TO-LET MORTGAGE RATES 2 - YEAR FIXED-RATE
LTV Ratio | Interest Rate | Typical Lender | Notes |
|---|---|---|---|
60% | 2.44% | West One | Lowest rates |
70% | 2.44% | Accord | Competitive |
80% | 4.94% | The Mortgage Works | Higher risk premium |
BUY-TO-LET MORTGAGE RATES 5 - YEAR FIXED-RATE
LTV Ratio | Interest Rate | Typical Lender | Notes |
|---|---|---|---|
60% | 3.94% | Furness BS | Stable long-term option |
70% | 3.99% | Birmingham Midshires | Slightly higher |
80% | 4.94% | Kensington Mortgages | Higher risk |
OTHER NEWS
The UK property market is showing resilience, with predictions of steady growth. House prices are expected to rise by 3% in 2024 and 2.5% by the end of 2025.
Recent policy changes include a Capital Gains Tax reduction from 28% to 24%, incentivizing property sales.
Long-term Outlook
The property market shows a positive trajectory, with projected house price growth continuing.
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Leeds Property Market Insights
Last week, we introduced Leeds as a promising investment destination. Today, we dive a little deeper into the market trends that make this northern powerhouse shine.
Property Prices and Growth
Leeds continues its upward trajectory, with average house prices reaching £247,000 in September 2024, up 3.4% from the previous year.
Source: UK House Price Index from Office for National Statistics and HM Land Registry
While slightly below the regional average, this growth highlights Leeds' resilience in a challenging market.
I believe this is significant because it demonstrates that, even during economic uncertainty, the data shows Leeds continues to achieve growth in difficult times.
Rental Market
The rental scene is booming, with average monthly rents hitting £948 in September 2024, a 5.3% annual increase.
Source: Price Index of Private Rents from the Office for National Statistics
This surge outpaces the regional average, reflecting strong demand from young professionals and students.
Rental Yields
Leeds offers attractive yields between 5% and 7%, with student-heavy areas like Headingley sometimes exceeding 7%.
Rank | Postcode | Area | Average Rental Yield | Average Monthly Rent | Average Property Price | 5-Year Price Change |
|---|---|---|---|---|---|---|
1 | LS3 | City Centre Outskirts | 10.90% | £1,692 | £186,728 | Not specified |
2 | LS4 | Burley | 9.50% | £1,749 | £219,955 | 30% |
3 | LS2 | City Centre | 9.00% | £1,258 | £167,637 | 24% |
4 | LS9 | Harehills | 8.30% | £997 | £144,531 | 15% |
5 | LS11 | South Leeds | 7.10% | £890 | £151,299 | 29% |
6 | LS6 | Headingley | 7.10% | £1,792 | £301,320 | 22% |
7 | LS1 | City Centre | 6.90% | £1,219 | £210,834 | 45% |
8 | LS10 | Hunslet, Stourton | 6.70% | Not specified | Not specified | Not specified |
Leeds top ranking postcodes in terms of rental yield
The city-wide average stands at a solid 5.61%, making it a lucrative option for buy-to-let investors.
Key Investment Areas
Headingley leads the pack with an average property price of £289,544 and yields of 5.8%.
The City Centre, South Bank, and Holbeck are poised for significant growth due to ongoing regeneration projects.
Factors Driving Growth
Economic Development: Leeds' (Gross Value Added) GVA is projected to grow by 16% over the next decade.
Regeneration Projects: The £500 million South Bank Leeds initiative will quadruple the city centre area and create over 35,000 jobs.
Strong Rental Demand: A large student population (over 65,000) and influx of young professionals fuel the market.
Strong Employment Growth: By 2027, Leeds' local economy is expected to be more than £1.8bn larger than in 2023.
BOTTOM LINE
As we look ahead to 2025, Leeds stands out as a beacon of opportunity in the UK property market.
With its blend of affordability, strong yields, and promising capital appreciation, it's no wonder savvy investors are turning their attention to this Yorkshire gem.
TO DO LIST
✅ Dive Deeper: Read "The Northern Powerhouse: Leeds' Rise as a Property Hotspot" for insights into Leeds’ £64.6 billion economy and its rapid growth.
✅ Map It Out: Zoom in on postcodes LS3, LS2, and LS4 in the city centre—prime spots for high rental yields and regeneration potential.
✅ Stay Data-Savvy: Keep tabs on Leeds' market performance, including an 18.8% projected property price growth by 2028.
Enjoyed this edition? Share The Data Capital with your friends and help them turn data into wealth.🚀
Keep an eye out for the next edition, where we’ll explore Investment Potential—how properties in Leeds align with local market needs and regeneration projects.
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