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Leeds has experienced huge property price growth in the last 12 months. According to Zoopla, average house prices increase by 8.4% year on year. Currently, the average property in Leeds is £207,000. This is significantly lower than London, which averages £525,000, so investors can easily secure a property. Property prices are expected to continue to climb.
Leeds offers some of the strongest rental yields in the entire UK, as the city boasts high employment rates and lots of leisure activities. This has led to an increase in rental demand in Leeds. Large employers include Channel4, SharkNinja and Jet2, who employ thousands of professionals in the Leeds area. This has created a supply-demand imbalance in the city. Therefore, rental prices are expected to continue to climb.
The average property price in Liverpool is currently £156,000, far below the national average. Despite this, many areas in Liverpool have been shortlisted as the best areas to live in the UK by numerous outlets. This is because, despite property prices, the city has a lot to offer, including luxury shopping and amenities. Large-scale regeneration is currently underway in Liverpool. This has led to a 7.6% average property price increase year on year.
Whilst property prices are below the national average in Liverpool, the rental prices are incredibly high. This is because Liverpool has high employment rates and has been actively increasing amenities available to residents. Projects such as the science park increase the number of professionals in the area looking for quality rental accommodation.
As the UK’s second city, Birmingham now has an average property price of £206,300. This is an 8.1% increase year on year. The increase follows Birmingham’s Big City project which coincided with the Commonwealth Games. This saw tourism and a large number of available jobs grow significantly in the city. Property prices are expected to continue to climb in the coming years as Birmingham looks to accelerate plans to become a thriving business hub with the installation of the HS2 line.
Rental demand is high in Birmingham as many of the UK’s leaders in science and technology have entered the city. This means that the demand for high-quality accommodation is high. An increase in skilled professionals means competition is high for apartments, so rental prices have increased. Investors in Birmingham have seen huge growth over the past few years. This will continue to increase moving forward as Birmingham aims to become the UK’s new tech hub.
As England’s northern capital, Manchester holds property prices of around £220,000. This is a large 8.1% increase year on year. This is due to the supply-demand imbalance in the city. Manchester has grown at such a rapid pace with the introduction of Media City which has attracted key businesses to the area. This includes BBC, ITV, Amazon, Adidas, Kellogg’s and many more. The city is continuing to grow, and it is expected that property prices will continue to skyrocket.
Manchester holds incredibly high rental yields, as property is available at a good price, but rental prices are high. This is because the city has grown as a business hub, comparable to London. Therefore, a property which is available at a lower price can still demand premium rental prices.
Nottingham has an average property price of £201,800. This is a 10% increase year on year, making Nottingham the fastest-growing city in the UK. This is a result of their city-wide regeneration, the Green Heart project. This project has improved the infrastructure in Nottingham significantly and while progress is still ongoing, it is reasonable to suspect Nottingham’s rapid growth to continue.
As Nottingham has invested in science, technology and education, retention in the city has grown. Students who study science and technology are now staying in the city, which has caused a spike in rental demand from young professionals. This combined with a high quality-of-life score, means Nottingham will continue to grow in rental demand in the coming years.
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