Property experts have put Sheffield in the spotlight as a Buy-to-Let hotspot for 2022, attracting investors from London and beyond.
The well respected industry magazine, Property Investor Today are reporting that Sheffield’s attractiveness in the Buy-To-Let market can be attributed to several reasons.
Sheffield Property Prices
One of the key benefits of Buy-to-Let in Sheffield is it’s still affordable to do and has a better yield than many areas located further south. The average property in Sheffield is under £170,000, with many falling way under this mark. This is substantially lower than prices in the south of England and helps make Sheffield one of the most valued cities in the UK.
Average yields in the area range from 4% up to 8% in the city centre. There are areas which generally offer the highest yield for rental purposes; S1 (the centre), S3 (Kelham Island) and S2 with its proximity to the city, accessibility to transport links and an influx of new build homes. There are great off-plan opportunities now too, alongside the city centre regeneration.
Other Sheffield areas may offer a lower yield but have greater potential for capital gain over the long term. It all depends on what you want from your investment, but it’s important to know each area and how you can expect a rental property there to perform.
Sheffield is a University City
For many landlords, the main reason for investing in Sheffield buy-to-let property is likely to be the presence of two excellent universities, The University of Sheffield and Sheffield Hallam University, and over 60,000 students. Both institutions offer a huge range of opportunities for students and staff and invest in continued development to retain their high-ranking status. Additionally, Sheffield doesn’t just cater to those currently studying but wants to help young graduates and young professionals stay within the city and grow with it. Investors are still seeing success with student housing and it’s likely that this will continue.
Rising Demand and a Growing Economy
Sheffield is currently experiencing a fast-rising housing demand. The demand for housing in general is rising, and the private rental sector has a continuing vital role to play as Sheffield continues to grow.
“By 2039, the population of 575,400 is expected to rise by 80,000, resulting in high demand for new homes,” adds the publisher.
Sheffield is now recognised as a global name in the science of metallurgy, and as having a significant growing economy. The Heart of the City II development is one of the country’s largest urban regeneration projects which will see £470m invested in shops, leisure facilities, restaurants, cafes, offices and homes across the city. Expected are 70,000 new private sector jobs, thousands more new businesses and a boost of £4bn to the local economy – if achieved this will help drive wages and wealth in the area, which, naturally boosts demand for housing.
Sheffield has a booming tech scene, start-up scene, and is home to some big business names. These companies attract young professionals which is good news for those involved with Sheffield investment and rental property. The demand for suitable accommodation for young professionals, students and even families has never been greater and many of these individuals are wanting a suitable rented property that allows them to get their feet on the ground as they adjust to a new city. In-turn, investors are looking to the north for opportunities and have particular interest in the business and tech hubs.
Sheffield’s Location
Besides moves to ‘future-proof’ the city’s economy there are several other factors which make Sheffield an excellent destination for Buy-to-Let property investment, starting with the fact that it has one of the best geographical locations in the UK – with Manchester only an hour away, London just two hours away and several regional airports about an hour’s drive away. Combining these transport connections with excellent digital infrastructure, an existing pool of young student talent and more experienced professionals, plus great affordability, and it’s easy to see why Sheffield has become a popular destination for businesses
Expert Opinion
City estate agent Redbrik have confirmed the report’s findings stating they have noticed an increasing number of investors looking at Sheffield for their next Buy-to-Let. Mainly because the yields are more favourable than other northern UK cities. Many London-based investors are also looking to the north to generate great rental returns.
Find a Good Sheffield Letting Agent
No-one knows the Sheffield rental market better than a local letting agent. They can help you navigate the new and increased legislation and ensure you remain fully compliant. They can also use their expertise to fetch you the best monthly rent, find good tenants that care for your property and keep on top of routine maintenance so that your investment is protected.
Many experts are saying that the rental sector is thriving and will continue to grow in line with anticipated increasing tenant demand. At Horizon Lets we have noticed rental prices soaring and unprecedented demand for the properties that are available… many available properties have been snapped up within days of being marketed!
Like with any investment, it’s completely dependent on your circumstances. However, if you’re looking for an asset with a strong past performance and one that’s forecasting up to 17% growth by 2025, Buy-to-Let property in Sheffield is definitely one to consider.
If you have any questions or would like any help and advice please contact our team:
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