What makes Sheffield a Property Investment Hotspot?
What makes Sheffield a Property Investment Hotspot?
Sheffield, one of the UK’s best property investment hotspots, is located in the large county of South Yorkshire. Previously nicknamed the ‘Steel City’, Sheffield gained an international reputation for steel production in the Industrial Revolution. The city is also well known for its dynamic university scene and rich industrial heritage.
An Abundance of Outdoor Space
Although Sheffield was formerly an industrial city, it is now one of the greenest major cities in Britain! Boasting the highest ratio of trees to people in Europe (4:1). Not to mention, a third of the city lies within the Peak District National Park. This is a great selling point for investors. Properties close to outdoor spaces are extremely desirable and are currently in very high demand. Thus acting as a magnet for investors.
Buyers are assessing their home spaces to suit their current requirements in the wake of the pandemic. As lockdown restrictions ease, many people are heading to parks or outdoor spaces to meet with loved ones at a distance. As we head into warmer days, outdoor exercise has also become a lot more popular. A recent survey revealed over 55% of people are prioritising searching for a home close to a park or near open spaces. This figure has increased by 13% on the year before and we predict this will continue to rise. Rest assured for investors looking to purchase in Sheffield. The city is surrounded by ample amounts of open spaces and beautiful scenic areas.
An Excellent Transport Hub
Sheffield is a highly desirable investment city in terms of accessibility and connectivity. Four airports are conveniently located within an hour’s drive of Sheffield. The transport hub also boasts impressive road and rail links, including the citywide Supertram network. The Supertram network connects to 50 stations, allowing residents to commute with ease. The tram connects commuters with bus services, rail services and six park and ride sites. As a result of the easy commute, the city attracts an array of skilled professionals who can travel to work efficiently.
This thriving commercial city presents an excellent opportunity for property investment with two large scale transport projects on the horizon. Once connected to the new HS2 high-speed rail network, residents can reach London within 87 minutes. In addition, plans include connecting Sheffield to the booming city of Manchester with a Trans-Pennine tunnel. Therefore, broadening the employment possibilities available for the younger and working population.
Economic Recovery after COVID19
Sheffield boasts a dynamic and creative city culture, with a vast number of museums and galleries positioned in the city. It is home to The Millennium Gallery, one of the most visited tourist attractions in the North of England. The Site Gallery is also undergoing a major redevelopment. Investment projects are rapidly changing the face of the city and building on its capital growth. Additionally, the tourism sector brings in £100 million to the local economy.
Known to adapt and diversify, the city has future-proofed its economy. The Sheffield City Region Mayoral Combined Authority and Local Enterprise Partnership have approved a 20-year Strategic Economic Plan (SEP). To rescue the economy from the pandemic, SEP plans to boost South Yorkshire’s economy by £7.6bn in 20 years.
“We want to create good, high-paid jobs for local people, attract investment and ensure our people have the skills they need to thrive. We will work with our partners to improve the health of our residents, reach net zero emissions by 2040 and transform the places people live.” – Dan Jarvis, Mayor of the Sheffield City Region.
A Thriving Rental Market
Sheffield is one of the largest cities in England, with a thriving and diverse metropolitan population of 730,000. The city offers fantastic business opportunities, attracting professionals. In 2014, 19 of Yorkshire’s biggest companies were based in Sheffield. Over the next decade up to 70,000 additional jobs will be available in the vibrant city. With over 52,000 businesses in operation, Sheffield continues to see a wealth of regeneration projects take place. Investors should note, successful regeneration schemes add to the capital growth of a city. Thus, strengthening the property market as the value of the property increases overtime.
Areas with large student populations naturally develop an increased demand for student accommodation. The city is home to two world-class universities: The University of Sheffield and Sheffield Hallam. People continue to move into the city for jobs and the city is home to over 65,000 students. However, the Sheffield Council predicts this figure will rise to 100,000 by 2039, this will add to the growing demand of accommodation. The rental market is booming due to the limited availability of high-quality housing in Sheffield. High-level rental yields achievable in the area as housing supply outstrips demand.
Prime Investment Location
House prices in the UK hit a record high value of £245,606 in March 2021. Despite the inflating house prices, Sheffield remains one of the most affordable areas in the UK for buying property in the city. Buyers can purchase a property for only £207,318 on average. In addition, a typical flat is listed at only £139,883. Therefore, buyers with a smaller deposit can still secure a stable and lucrative investment. As a result of low house prices, the city generates some of the highest rental yields.
According to Zoopla, property prices have increased by 37.19% in the past decade, illustrating the rate at which Sheffield is expanding. In essence, the city is a prime investment location. With several regeneration schemes in the pipeline, it is predicted the market will continue to flourish.
Get in touch with one of our investment consultants today to secure your next investment in Sheffield!