Property for sale: Sheffield is a buy-to-let hotspot attracting investors from London

Industry bible Property Investor Today names Sheffield as one of the most valued cities in the UK and this is backed by local estate agents which say buy-to-let properties can offer excellent profits.

Property advisor Advantage Investment tells the online publisher Sheffield is a hotspot for investors due to its average property values, which are around £190,000 according to price indexes.

This figure is below other parts of the country and there is also a fast-rising housing demand. “By 2039, the population of 575,400 is expected to rise by 80,000, resulting in high demand for new homes,” adds the publisher.

“Sheffield is home to prestigious universities and a sizable student population, which contributes to the city’s rising population as a substantial number of students stay in the city after graduation.”

City estate agent Redbrik confirmed the reports findings and said an increasing number of investors are looking at Sheffield for their next buy-to-let, as the yields are more favourable than other northern UK cities. Many London-based investors are also looking to the north to generate great rental returns.

Property consultant for Sheffield lettings Jennifer Hitchman added: “I’m not surprised to see Sheffield listed as a UK investment hotspot as it’s such an incredible location for investors.

“Rents have been increasing at an unprecedented rate in Sheffield in the last 18 months, as a result of high tenant demand and a lack of good quality supply. This offers a fantastic opportunity for aspiring landlords or those looking to expand their portfolios.

“We have registered a very large number of applicants looking for properties in the city who are relocating from London due to flexible working. They are citing Sheffield as either somewhere they have roots or family connections or because of its good commuting links to London. It’s sometimes as simple as they want good proximity to the Peak District!”

An example of property attracting investors is a semi-detached house on Colister Drive, Darnall. Redbrik says rent could be £750 per calendar month rent which is around six percent yield based on £150,000 purchase price. For details visit https://www.redbrik.co.uk/property/colister-drive-sheffield-s9/

Other Redbrik examples include a two bed apartment on Dover Road, Hunters Bar, could get between £1600-£1800 rent per calendar month, which is around four and a half percent yield based on the £400,000 guide price. Details at https://www.redbrik.co.uk/property/dover-road-sheffield-s11/

A semi-detached house on Leadbeater Road, Gleadless, could get £900 rent per calendar month which is around five percent yield based on the £210,000 purchase price. Details at https://www.redbrik.co.uk/property/leadbeater-road-sheffield-s12/

The story comes as research from specialist property lending experts Octane Capital reveals that the UK’s buy-to-let sector has grown substantially in value over the last five years, increasing by almost £240bn.

Octane analysed the level of privately rented stock across each region of the UK in relation to current market values to find the total worth of the buy-to-let sector. They then compared this buy-to-let bricks and mortar value to 2017 to reveal how it had changed over the last five years.

In Yorkshire and the Humber, the buy-to-let sector rose by almost a quarter in that period, making it worth more than £18bn.