Introducing Leeds: The city providing the power to the Northern Powerhouse
September 08, 2023
One of the UK's most famous and storied cities, Leeds has many sides to it. Well known as a party town (you can always have a good night out in Leeds), it is also famous for its excellent universities and huge student population. Proportionally one of the largest in the UK this student population is spread across the city’s three major universities and nationally renowned teaching hospitals whilst having a constant stream of tourists.
Health care is big in Leeds. It’s home to the behemoth NHS Digital and the healthcare economy is a key part of the city’s Innovation Arc, a huge planned work and research hub in the city centre. The healthcare industry has quite a transient workforce – professionals often looking for short-term lets in the city. Ideal for property investors – just like the leisure and tourism crowd.
Finance is another bulwark of the Leeds economy. Home to the Bank of England’s presence outside of London and all of the financial and legal institutions that you’d see in The Square Mile - including all of the Big Five accountancies and Bix Six law firms- have significant offices in the city, making Leeds the largest financial centre in England outside of London.
All this to say, there’s a lot of money in Leeds. And thanks to the machinations of capitalism this attracts everything a would-be landlord or property investor needs:
Top earning tenants (Leeds has a much higher proportion of high-income neighbourhoods than Manchester)
A future-focused economy capable of attracting topflight talent – thereby creating a strong foundation for growth in the housing market
Thriving retail and nightlife (good for short-term lets)
Leeds is often overlooked by its larger (and noisier) northern neighbours of Manchester and Liverpool. Whilst those cities have serious swagger, Leeds could aptly be described as the diligent colleague in the background, quietly doing all the work and keeping the company afloat. Seven million people live within an hour of the city centre and it’s home to major corporates such as Direct Line Group, Centrica, BT and Asda Group. It’s also the birthplace of Britain’s best-loved high street store, Marks & Spencer. Little wonder it’s often described as the power in the Northern Powerhouse.
But whether or not Leeds packs a punch well above its weight, there’s little doubt it offers UK property investors a top location in which to buy. In 2023 alone, city rents rose by 3.9%. Average rents are now 29% higher than they were in June 2020. Savills predicts a compound growth in house prices of 11.7% over the next five years, but of course the real story is in the rental returns and yields which is why in the coming weeks we’ll be offering our clients our first ever Leeds development: 4* serviced apartments in the city centre starting from £110,000 with an 8% gross 5-year rental guarantee.
Like many others, we’re banking on Leeds.
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richard bradstock
RPA MANAGING DIRECTOR
about the AUTHOR
RPA’s founder Richard has worked in residential development investment for 20 years and oversees the general running of the business, ensuring the RPA Group retains true to its founding principles. Over his career, Richard has built an incredible network of international property investors and like-minded industry professionals.