Located in the middle of Yorkshire with easy access to all the major cities and regions, Leeds is perfect for businesses of all shapes and sizes. The city has a particular strength in the financial services sector where it is second in the UK only to London. 38% of the Leeds economy is based on finance, making the city a key destination for thousands of young professional workers.
With economic growth of more than 40% in the last decade, and forecasts of a further 21% growth in the next decade, it is no surprise that Leeds is one of the few places in the UK registering a NET annual gain of young people. Leeds recorded 6% jobs growth in 2016 and we expect this trend to continue in the future.
And this state of affairs is only set to continue in the future due to the city having £7.3bn of development either in the pipeline or already being delivered, covering sectors as diverse as transport, manufacturing, education, retail and leisure. Already the city is home to companies as large as Asda, Direct Line, Centrica, Sky plc and Yorkshire Bank, but this is only the start. The future is extremely bright for Leeds and the city will only become more attractive to young people, including the almost 40,000 people who graduate from universities in the region every year.
The plan is to add 35,000 jobs and £3.7bn to the city’s economy by 2036 – lofty goals, but ones fitting Leeds’ status as the heart of the largest regional economy outside London. The heart of this growth will be the South Bank area which is in the process of being fully redeveloped. This huge area to the south of the River Aire will be so large and economically significant that it will drag the city centre southwards and represent the biggest change Leeds has seen in over a century. It is a truly exciting development and people will be desperate to move there.
However, the rate of housebuilding is not keeping up with the population growth. There is a real lack of high quality rental accommodation close to the city centre, and there is nowhere near enough either in the pipeline or in construction to satisfy the demand at the moment – let alone in the future.
With this in mind, it is easy to see why JLL predicts that Leeds is set for 19.9% house price growth and 18.8% rental growth by 2022. All of that is on top of house price growth of almost 25% over the last five years, as recorded by Zoopla.
Leeds is one of the UK’s next big up and coming property investment markets and has comparable potential for buy-to-let investors as Manchester and Liverpool did five years ago. This is the right time to get ahead of the market and invest in a city which is on the edge of becoming a national property investment sensation.
Are you interested in investing in Leeds? Have a look at our Leeds investment page and enquire today for more information on our upcoming developments in the city.