Where should you buy property in Leeds for investment?

In our UK property investment hotspots article, we recently featured Leeds as a good place to invest to achieve good levels of capital growth and rental yields. Here is a comprehensive list of where we think you should invest in Leeds for capital growth and rental yields.

1. The best areas to invest in Leeds for capital growth
2. The best areas to invest in Leeds for rental yields

Over the years Leeds has reversed its image from a struggling industrial town to an exciting tech city. Leeds is now the UK’s fastest-growing city. Its property market is also performing strongly, and Leeds property values were up 5% in 2020 compared to 2019 figures according to Rightmove.

Leeds is the largest employment centre outside of London, supporting a total of 498,000 jobs. It also has the highest rate of private sector jobs growth in the UK at 6.1%. It is not just a booming employment market that makes Leeds attractive.

It hosts the Leeds Festival and has many cultural attractions such as its own opera and ballet companies and Harewood House –where Downton Abbey was filmed. For those who live in Leeds, not only do they have access to a wealth of employment opportunities, but it is also one of the best cities in the UK for shopping. Leeds is welcoming more and more young professionals from London, who are looking for similar job opportunities but with a lower cost of living. Read more about why we think Leeds is a good place to live. It's also conveniently close to the Yorkshire Dales National Park and York, which is a popular winter staycation destination.

Leeds is also home of recently promoted Leeds United Football Club. David O’Leary ended his football playing career and began his managerial career at the club. Irish legends Robbie Keane and Ian Harte have also played for Leeds.

There is not just an Irish connection to the home football club, but also with the city itself. Venues such as dance halls and public houses in the north east of the city centre such as Sheepscar and the Leylands were frequented by the Irish community in Leeds, who settled in the surrounding areas such as Harehills, Chapeltown and Hyde Park. This has brought a sense of familiarity, and for those looking to invest in UK property Leeds is usually the first city they consider. According to estate agents in Ireland, many Irish investors bulk buy riverside property in Leeds and sell on as individual units. Most are looking for capital growth, and property price trends in Leeds suggests this could be a good tactic as Leeds saw second highest growth in 2020 at 5.6% according to Zoopla.

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There are some postcodes in Leeds that have seen more growth than others, read on to discover where you should buy property in Leeds for capital growth.

The best areas to invest in Leeds for capital growth

LS7

LS7 sits to the north of Leeds and covers the districts of Chapel Allerton, Potternewton, Scott Hall, Sheepscar, and Little London. According to figures from PropertyData, over the last five years LS7 experienced the highest capital growth in Leeds along with the LS16 post code at 26% to average prices of £235,527. Since 2010 areas in LS7 such as Little London have been redeveloped with ageing council blocks being demolished and replaced by low and mid-rise apartment buildings. The regeneration of residential stock along with its proximity to central Leeds has made it popular with young professionals seeking a cosmopolitan lifestyle.

LS16

LS16 contains Bramhope, Adel, Cookridge, Tinshill, and Weetwood. LS16 borders the Leeds Beckett University Headingley Campus and lies north west of the city centre. The area is a mix of council and suburban private housing and Adel has a countryside feel. According to PropertyData, prices in the LS16 postcode rose by 26% over a five-year period to 2020.

Regeneration has already started in the area such as the new Spring Wood Park residential development in Bramhope and the conversion of a disused hospital in Cookridge into 30 new homes. The Holt Park District Centre also began its regeneration process and a new leisure centre and school were built on the site.

Ongoing regeneration includes the development of 72 homes on a former school site and listed buildings between Tile Lane and East Moor Lane in Adel. Also, the rest of the Holt Park District Centre site is due to be redeveloped, with ASDA developing its store to offer better parking facilities and a coffee shop.

With new facilities and housing, we can only see prices in the LS16 postcode increasing.

LS9

Property prices in the Leeds LS9 postcode rose by 25% over the last five years. LS9 lies to the east of Leeds city centre and areas in the district include: Harehills, Gipton, Osmondthorpe, Cross Green, and Burmantofts.

In the Saxton Gardens area, council flat blocks are renovated and let to young professionals looking for affordable accommodation close to the city centre. Renovation works has increased the appeal and prices of property in the area.

The average property prices in the LS9 postcode stands at £150,738 which is below the average for the city of Leeds as a whole. This allows investors to find good value property in an area that is still experiencing regeneration.

LS3

Although LS3 appears mid-table for rental yields and capital growth, its proximity to the city centre and redevelopment means there is still room for capital growth and healthy rental yields. Its property prices are mainly reflected by the demand shown by affluent young families and parents looking to buy property for their student children to live in.

Areas such as Burley, Kirkstall, Woodhouse are in the LS3 postcode. It is close to the city centre and could be a good option for those looking for good returns. It borders the University of Leeds and Leeds Beckett campuses and this makes it a popular area for students. It is also central so young professionsl working in the city centre choose to live there for a short commute.

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West Central Apartments are in the LS3 postcode but prices start from just £164,800 which is below the average for the area of £223,895. This means that there is opportunity for these attractive new builds to grow in value and match the prices of property in the area. According to figures from HM Land Registry, property in the LS3 postcode sells second fastest out of anywhere in Leeds, averaging 13 weeks on the market.

The best areas to invest in Leeds for rental yields

LS4

LS4 contains the inner-city districts of Burley and Kirkstall and it is here that the highest yields in Leeds can be achieved, averaging 7.8%. As these areas are inner-city, they are attractive with students and young professionals alike, which boosts rental demand and yields.

The areas of Burley and Kirkstall are attractive because they are close to Headingley town centre which is full of restaurants and bars. The area itself has been redeveloped and there are now many shops, restaurants and gyms between Kirkstall Bridge and Cardigan Fields.

LS4 is close to Headingley - home of Headingley Cricket Ground

Just a five-minute walk from Leeds city centre and property averaging a modest £180,687, it is no surprise that good rental yields are achieved here.

LS9

LS9 is not only one of the best areas for capital growth, but also for rental yields. This is mainly due to its convenient location vs. average property value of £150,738. Although in some areas of LS9, yields have been boosted by a lack of maintenance on the properties, there is still scope for good rental yields with renovated property in the Saxton Gardens area.

LS2

LS2 borders the northern part of Leeds city centre and property here fetches an average rental yield of 6.3%. LS2 contains the areas of Blenheims and Woodhouse. The University of Leeds campus is in this postcode, so it is popular with students wanting to live close to their place of study and the city centre. There are numerous purpose-built student accommodation blocks and private student rentals in the area. High demand coupled with an average property price of just £157,294 will allow investors to achieve high yields.

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Investors looking to achieve high rental yields should consider areas with a high student population or places close to the city centre popular with young professionals. Those looking for capital growth should consider areas that still have a low average property price but where regeneration has recently finished or is in the pipeline, such as Little London.

Property in west Leeds is always coveted and in general, west Leeds has a more upmarket feel. We think property around the Kirkstall Road area will do well because of the recent regeneration to bring more entertainment options to the area, its proximity to Headingley and the city centre.

For investors looking to buy property in Leeds and are starting to build a property portfolio why not contact us today to find out what other properties we have on our books?