Property Investment Leeds: The Complete 2024 Guide (2024)

Chapter 1 of our guide will cover six reasons why investing in Leeds is a good idea in 2024.

We’ll be taking a look at the latest urban regeneration initiatives in the city, affordability of house prices, and more.

Key topics:

• Affordable house prices
• High rental yields
• Huge rental demand
• Massive urban regeneration

The question on a lot of property investors’ lips is – ‘why invest in Leeds?’

Crowned the best city to live and work in the North of England in 2021, while also named the best city for parks and playgrounds in 2020, Leeds property investment is one of the standout UK cities in 2024.

Rated as one of the hottest sales markets in the UK by Zoopla, the Leeds property market has generated some of the best returns possible over the last 12 months, with the city boasting an economy estimated to be worth around £64.6 billion.

So why is Leeds a good place for UK property investments?

Before buying property in the UK, take a look at some of the reasons why you should take advantage of the opportunities buy-to-let Leeds offers.

One of the primary reasons behind Leeds property investment’s reputation as one of the best areas to invest in property  has been its affordability.

According to the latest property data from the Land Registry, the average house price in Leeds is valued at just £245,191 as of October 2023.

For comparison, that is over £40k cheaper than the UK average, with detached houses, semi-detached houses, terraced houses, and flats all cheaper in Leeds than the UK average.

The average house prices in Leeds show that rental property in the area can compete with the most prominent cities and offers good value property in Leeds.

Due to the affordable property prices seen in investment in Leeds, rental returns in the city are also excellent.

Those who find buy-to-let property in Leeds will benefit from average gross rental yields of 6.30%, according to the latest Zoopla rental price data from April 2023.

These statistics stack up incredibly favourably when you compare it to other cities in the UK.

Looking at the data, the Leeds city region offers one of the highest average rental yields in the UK while also at a competitive price point.

While it’s important to note that rental yields aren’t the be-all-end-all, with a lot of other factors to consider, like rental demand and house price growth – as you will see later in this guide, Leeds buy to let ticks these other boxes too.

Overall, Leeds buy-to-let offers a compelling blend of affordability and rental yields for investors.

A big appeal behind property investment in Leeds is the massive house price growth set for the coming years.

According to the latest Savills predictions, the Yorkshire and the Humber region is set to see house prices soar by 20.2% by 2028 – this is the joint-highest predicted growth rate in the UK alongside the North West and North East.

Looking back at the past year, it’s clear that this growth is unsurprising.

Over the last 12 months, property prices in Leeds are 9.37% higher than a year prior.

This Leeds property prices trend has continued throughout the last three years, too, with prices rising by 28.64% since the start of the Covid-19 pandemic.

Investments in Leeds are proving a hit in the city’s rental market thanks to surging demand over the last two years.

A report from Zoopla in June 2021 found that Yorkshire had the largest annual growth of rental demand in the UK, recording a 3% rise.

This has had a strong impact on rental prices in the region to this day, with property prices in the region recording a whopping 9.37% rise over the last 12 months – for comparison, that is higher than the South East, South West, and East Midlands.

These figures are unsurprising when you consider the rising population of the Leeds region.

Population statistics from World Population Review estimate that the Leeds population stood at around 530,984 in 2023.

A report by the Centre for Cities found that the population in Leeds has grown at seven times the rate of London in recent decades, with an increase of 151%.

This demand for property is coming from a wide range of people such as young professionals working in the city, young families relocating to the area, and students attending the many universities Leeds has to offer – all making buy to let Leeds investments a strong choice in 2024.

Browse all properties

Take a look at our latest property investment deals in top UK locations.

Start your Property Search

While residential property is always a popular choice amongst UK property investors, if you want a good value property with high returns, then student accommodation is an excellent choice.

Luckily for prospective Leeds property investors, the city of Leeds offers plenty of opportunities for student investment property for sale thanks to a thriving young population.

Home to one of the largest populations of students in the UK, and widely considered one of the best student cities in the country, Leeds property investment in student accommodation is certainly a worthwhile venture.

How Many Students Are in Leeds?

Leeds has a student population of over 60,000, with more than 39,000 students enrolled in the University of Leeds alone in 2023.

The popularity of Leeds as a university city not only boosts the success of student property investment due to the high demand for student accommodation but also makes purchasing residential buy-to-let Leeds properties an equally lucrative option.

Many students in Leeds choose to stay in the city after graduation, with Leeds Art University having been awarded the title of ‘University of the Year for Student Retention’ by the Times in 2019.

With 2023  seeing the second-highest number of university applicants across UK cities on record, the future definitely looks bright for investments in student cities like Leeds.

Check out our ultimate student property investment guide to learn more on this.