Sheffield – UK Buy-to-Let Property Investment Hot Spot

The Northern Powerhouse city of Sheffield is one of the fastest growing cities in the UK, the fourth largest city in the England, with its population set to increase by 15% by 2039.

The city has attracted significant investment from both government and private institutions over the past 5 years and is fast becoming a key player in the Northern Powerhouse government initiative, with its large scale regeneration, improved infrastructure and connectivity with London with HS2, boosting its economy already worth £11.3 billion.

Sheffield has seen average house prices increase by 19.58% over the past 5 years, with further growth of 24.1% for Yorkshire & the Humber forecast over the next 5 years, outperforming the UK forecast of 2.2% per annum price growth. Sheffield’s average rents have also increased by 23% in the last 5 years according to Propertydata.co.uk (Q1 2020).

Sheffield presents excellent prospects for rental and capital appreciation fuelled by the city’s regeneration programmes, connectivity, student population and high quality of living, which combined with its affordability has made Sheffield a buy to let property investment hot spot.

‍

‍

‍Strong Rental Demand

• Average rents in Sheffield have increased by 23% in the last 5 years (Propertydata.co.uk Q1 2020)
• Combined with its affordability, Sheffield offers buy-to-let property investors excellent prospects for positive cash flow and strong yields

Increases in Property Prices

• Average house prices in Sheffield house prices have increased by 19.58% over the past 5-years according Zoopla  
• Savills forecasting 24.1% house price growth over the next 5 years for the region
• Sheffield average property price is £203,299 and is much lower than the average house price in the UK; therefore, remains affordable for buy-to-let property investors

Regeneration, Infrastructure & Investment

The city of Sheffield is seeing the benefit from a huge level of investment into regeneration schemes, providing an excellent opportunity for capital appreciation.

• Sheffield Heart of the City II is a £480 million regeneration project that will incorporate the development of HSBC’s flagship building. This will secure nearly 3,000 jobs and will in-turn, increase the demand for quality rental accommodation.  
• Other projects include the Castlegate Quarter, the oldest part of Sheffield, set for an £800,000 to revamp, with plans to create a new green corridor and transform derelict shops and buildings into spaces for businesses and tech start-ups.
• HS2 will run from London to Birmingham, then on to Manchester and Leeds, calling at Sheffield, reducing the journey time to London by 40 minutes.  

Sheffield Student Population

Sheffield’s student population is fuelling the demand for quality rental accommodation during their studies and also with the progression from student to young professionals, which is in turn boosting house price growth.

• The city of Sheffield is home to over 60,000 students across two prominent universities  
• The University of Sheffield is part of the Russell Group of research universities with over 29,000 students from over 150 countries
• Sheffield Hallam University with 33,800 students enrolled

‍

‍

Sheffield Population Growth

• Sheffield is England’s fourth largest city  
• The population of Sheffield is estimated to be 575,400  
• Sheffield’s population is forecast to increase by 15% to 88,600 people to a total of 652,300 by 2039 (Sheffield City Council)

Sheffield Economic Growth

• The GVA of Sheffield is £11.3 billion
• Sheffield is undertaking 10-year strategic economic plan, with 6,000 new businesses creating 17,000 new jobs by 2024 boosting the city's GVA
• The economies of the North West and Yorkshire & the Humber are expected to be two of the strongest performing economies in the UK over the next five years
• The region’s key cities are forecast to be the main drivers of this outperformance, with the Northern Powerhouse Government initiative supporting this expansion with further stimuli expected  

Regency Invest have a range of exclusive investment opportunities in Sheffield. Please click here for your free, friendly and no obligation consultation with one of our property experts.

‍