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Located in South Yorkshire, Sheffield is one of the largest cities in England, with a thriving and diverse metropolitan population of 730,000. The city boasts 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.
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. 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 let before and we predict it will continue to rise. Investors looking to purchase in Sheffield, rest assured, the city is surrounded by ample amounts of open spaces and beautiful scenic areas.
Sheffield poses as an
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, connecting residents globally. The transport hub also boasts impressive road and rail links, including the citywide Supertram network. The tram network connects to 50 stations, allowing residents to commute with ease. Furthermore, it connects commuters with bus services, rail services and six park-and-ride sites. As a result of the effortless journeys, the city attracts an array of skilled professionals who can travel to work efficiently.
This thriving commercial city presents an excellent opportunity for property investors as the capital growth of Sheffield increases. Two large scale transport projects are on the horizon, heightening Sheffield’s connectivity. Once connected to the new HS2 high-speed rail network, residents can reach London within 87 minutes. Plans also 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. Consequently, this will boost demand for property in the area, with the influx of renters in the market.
The student city is home to two world-class universities: The University of Sheffield and Sheffield Hallam. People continue to move into the area 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, which will add to the growing demand for accommodation.
The rental market is booming due to the limited availability of high-quality housing in Sheffield. High-level rental yields are achievable in the area as housing supply outstrips demand. Areas with large student populations naturally develop an increased demand for student accommodation, proving to be a hotspot for investors.
The city offers great business opportunities attracting professionals from across the region. In turn, this will increase the number of renters in the market. In 2014, 19 of Yorkshire’s biggest companies were in Sheffield, with over 52,000 businesses in operation.
According to predictions, over the next decade, 70,000 additional jobs will be available in the city. This is great news for investors because an influx of renters in the market will eliminate the risk of vacant properties. The city attracts huge funds and is home to world-renowned brands, including the largest aircraft manufacturer, Boeing, and the McLaren Automotive factory. It is also home to Rolls Royce, a business giant contributing £12.2bn to the UK economy. Economic activity is expected to increase to £3.7bn in the next decade.
The bustling city is constantly generating exciting opportunities for workers. Research-led facilities, listed below, employ professionals across the divisions of aerospace, transportation, and healthcare.
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.
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.
Sheffield continues to see a wealth of regeneration projects take place. In essence, an impressive £1.5bn worth of regeneration will be spent across two decades to revamp the city.
Following the success of the ‘Heart of the City I’ Scheme, the next project ‘Heart of the City II’ is now underway. The £470 million investment scheme will fund the development of two new hotels, retail, leisure, grade A office space and city-centre living. A further £175 million has been invested into the West Bar Square scheme, redeveloping the Riverside Business District with new offices, apartments, shops, and restaurants.
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 over time. Purchasing a property amid the regeneration of Sheffield will result in a higher ROI in the coming years.
Heart of the City II£470m
The Heart of the City II branches out across Sheffield, revitalising the city centre. From the £150m expansion of the Meadowhall Shopping Centre to the 1.5million sq ft redevelopment of the city. This master plan, set to complete in 2024, will deliver around 7000 new jobs.
The project is a huge milestone for Sheffield, and the largest single private sector investment deal Sheffield had ever seen. West Bar will become a mixed-use development, which includes offices, leisure and retail space and apartment, and will create over 8,000 new jobs.
Grey to Green Scheme£6.3m
This is an award-winning regeneration project and a milestone in Sheffield's commitment to creating a greener future. By connecting Castlegate to Victoria Quays, redundant inner ring roads have been transformed into beautiful blossoming corridors with clever and sustainable drainage initiatives.
House prices in the UK hit a record high value of £343,002 in Q3 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 £224,087 on average. 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 50.1% in the past decade, illustrating the rate at which Sheffield is expanding. Prices continue to grow, with an annual growth rate of 9.2% for 2021. 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.
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