For many years London has been well known as a property safe haven, however prices in the capital have witnessed a steep increase which has forced savvy investors to search for opportunities a little further afield.
Prominent UK cities such as Leeds, have emerged as a top location for buy to let investment.
The city’s rental market has been described as ‘booming’ by property experts who believe that the movement of large employers such as Google and Sky will help to cement the location as a property hotspot.
‘Leeds is enjoying a fast improving city centre living environment and is quickly building a reputation as one of the UK’s premier retail destinations, so its residential market and the steady capital growth that apartment values enjoyed in 2014 will no doubt continue to flourish in 2015. However, the rentals market will still dominate market activity,’ Jonathan Morgan, Managing Director at Morgans commented.
The cost of renting a property in Leeds increased by an impressive 5.1% in 2014 (Knight Frank) and property prices have increased by a stable 7.3% in 2014 (Hometrack).
Occupancy rates have also been reported in excess of 99% and, with the number of households in Leeds projected to rise by 44,500 by 2028 (ONS), the demand for property in the city is set to soar.
Off plan property in Leeds
For those considering investing in property in Leeds, an off plan property investment may provide higher yields than options which are currently available on the market.
Victoria House is an example of how investors can generate a greater return from their investment by buying off plan.
The development itself is located in a popular part of the city centre which is set to benefit from the development of a new £150 million shopping centre which is set to open in 2016.
Investors can purchase a fully managed studio, 1 or 2 bedroom apartment within the development and will secure a 3 year rental assurance of 8% NET per annum.
The fully managed nature of this opportunity will enable investor to enter the property market from only £75,950 – far less than a property in London. Also, as the apartments are off plan, investors can purchase a property 20% below comparable properties.