Sheffield property: Sheffield is 'one of the best cities in the UK for property investment potential'

The city is one if the top five in the UK listed by property expert Collier for overall investment potential and with the best income-to-rent ratios.

Analysts say it means affordability is good for Sheffield tenants, so there is room for landlords to increase rents over the coming years if wages rise.

The report is being heralded by residential property group Leaders, which says tenant demand continued at a strong level across the UK despite the uncertainty of the last two years, which meant landlords were generally able to increase rents to keep yields up.

South Yorkshire property: Is this the cheapest house in the region, for sale with a guide price of just £5,000?

It adds that landlords with one property reported a 4.8 per cent average yield, while at the other end of the spectrum, landlords with 20 or more properties are enjoying 7.4 per cent yields on average, primarily because of the number of landlords with houses of multiple occupancy.

Leaders, which has a team based in Sheffield city centre, says to boost the yield of a rental property, think about what you can do to appeal to the best-paid tenants and who can afford to pay the highest market rents.

They’re generally looking for fresh, modern décor, great WiFi and an energy efficient property that’s cost-effective to heat and maintain.

The advice comes as figures show two-and-a-half times more households are renting private accommodation in England than they were 20 years ago.

Experts at storage and removals specialists Lovespace believe the trend is only likely to increase amid the cost of living crisis currently gripping the UK.

In 2000, Statista.com shows there were two million households in private rented accommodation in England and by last year this figure had reached 4.43m - in statistics published just weeks ago. The number of social renter households is just under four million.

Marriage and relationship breakdown, the appeal of maintenance-free rental contracts and the need for flexible accommodation continue to fuel the demand for private rented flats and homes, alongside an increasing population.

A spokesperson for Lovespace said: “Although we are seen as a nation of people striving to own their own home, the number of people opting to rent privately is rising, and has been doing so for the last two decades. There is nothing to say this upward trend is going to do anything other than increase further over the next five years.

“Factors to account for include the continued rise in housing costs amid the cost of living crisis, plus a trend to more remote working which accelerated during the pandemic. Many employers are looking to move North from the South or expand and the quality of rental homes and available amenities mean renting holds increasingly huge appeal.”

Lovespace says the costs of stamp duty and raising funds for a deposit also deter people from buying a house, along with rising house prices making it harder for people to get onto the property ladder.

But it adds that many people just enjoy the flexibility of renting through a landlord too - being able to move between or across cities and towns with ease, without being anchored to a specific postcode and not having to pay if the boiler breaks down suddenly.