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As one of Europe’s greenest cities, Sheffield offers the perfect balance between industry and nature. The city is one of the northern powerhouses which have experienced large property price growth in the past 12 months, with a massive 8.5% increase.
Furthermore, Sheffield has become a very attractive location for tenants. This is because of green living, high levels of employment and great rental properties at affordable prices when compared to other large UK cities.
According to Zoopla’s latest market report, the average property price in Sheffield is £171,600. This is considerably lower than other northern cities such as Leeds and Manchester where the average property would cost £208,000 or £219,000 respectively. Lower prices also make it far easier to save for deposits when buying a property using a mortgage. This is one of many reasons investors are leaving London.
This makes it the ideal location for first-time investors or seasoned investors looking to add to their investment portfolios. Lower property prices also represent lower-risk investments, meaning your capital is more secure if property prices were to dip.
To find out more about Sheffield councils plan for the city, read more, here.
Sheffield is undergoing a large regeneration scheme, Heart of the City 2022, completing in 2023. This will see the creation of 7,000 new jobs and several new amenities, as a result of the project working professionals will relocate and therefore further boost rental demand. The plans will add £470m worth of developments and strengthen the local economy.
The city council is keen to keep the city’s green living standards high, with environmentally and socially responsible master planning. The city is also capitalising on £37m of the government Levelling Up funding by adding a new rail upgrade which will help commuters travel to London in just 87 minutes.
Rental demand is high in Sheffield, partially because of the graduate retention rate of Sheffield Hallam University. The university is a huge draw for young adults in the city and with many amenities and jobs available, large numbers of graduates stay in Sheffield beyond their university years.
With high rental demand comes higher rental prices and as Sheffield property prices are low, the rental prices offer better yields. The creation of new jobs from the Heart of the City scheme will further fuel this rental demand as more skilled professionals move to Sheffield. Right now, properties in Sheffield can yield as high as 7%, offering a large return on investment for investors.
Investors in Sheffield have benefitted from 8.5% property price growth in the past 12 months. Property price increases generate higher capital appreciation, an investor in Sheffield can expect this to continue to climb as Zoopla forecasts further growth across northern cities over the next 5 years.
While property prices may have increased slightly more in other areas of the UK, Sheffield is building upon strong foundations which will allow for sustainable growth over the next decade.
According to statistics from Varbes, Sheffield house prices have risen by 42% in the past 10 years and 20% in the past 5 years. This was likely a result of the first Heart of the City scheme, which saw thousands of jobs created and the improvement of much of Sheffield’s city centre.
Sheffield boasts the highest tree-to-person ratio in Europe, with over two million of them across the city. With 250 public parks and over 52 square miles of national parks, Sheffield is one of the greenest cities on the continent. The city council are committed to furthering the city’s green living through future developments.
To investors, this means an increased quality of life for residents and a more sustainable future for Sheffield. Securing a development sooner rather than later may put investors in a position of strength as the city council may be reluctant to build on green land in an effort.
For residents, there are plenty of green activities around the city such as Parkwood Springs which boasts an exciting cycle path for adrenaline junkies. However, for those looking to enjoy a quiet weekend activity, Westwood Country Park is full of history and includes the route of the old railway system, which opened in 1854, making it a perfect location for a long stroll.
Sheffield is an exciting northern powerhouse for investors with lots of opportunities for sustained growth. For investors looking for strong capital appreciation, the city has seen property prices rise considerably in the past year and is expected to continue this level of growth over the next few years. However, still has a lower average property price than other northern cities, allowing investors to purchase property before prices climb further.
For landlords, the high yields and rental demand mean that you will see a strong return on investment. With regeneration adding over 7,000 jobs to the city, it will attract more potential tenants to Sheffield, further increasing rental prices in line with demand. For investors looking for property in the north of England, Sheffield has a lot of value in the market.
CityRise has some incredible investment opportunities available in Sheffield, here.
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