Sheffield could be the UK’s next big property market as a housing shortage coupled with a strong demand for rentals are creating new opportunities for real estate investors. Known as the Steel City, a nod to the city’s industrial past, Sheffield has bloomed into a modern metropolis.
According to a recent article in the Sheffield Telegraph, the economy is performing well with employment levels in the city and surrounding areas growing and incomes rising higher than inflation. The city is home to a pair of world class universities, University of Sheffield and Sheffield Hallam University, as well as several smaller educational centres. More than 50,000 students currently attend university in the Steel City.
This has benefited the city’s property market. In fact, housing price growth in Sheffield outpaced London last year and should continue to rise. Home prices rose by more than 5.6 percent last year. The English capital only recorded home price growth of 1.5 percent in 2017.
Why is Sheffield attractive?
For starters, Sheffield is unofficially the greenest city in Europe with tree-lined streets and parks found throughout the metropolitan area. There is a lot more to the city than greenery. It is one of the most diverse in the UK, with unique neighbourhoods and plenty of entertainment options available to residents.
Kelham Island is perhaps the most talked about place in Sheffield. It boasts a growing number of trendy restaurants and pubs with the waters of the River Don serving as a backdrop. And with the Sheffield city centre only 15-minutes away on foot, many of those attending events at The Crucible Theatre or O2 Academy Sheffield opt to stop by this district before and after the festivities.
Demand but no supply
Demand from both renters and buyers for homes around Kelham Island and Sheffield city is quite strong but there is a lack of modern, new-build developments. Only a few new projects are in the pipeline with investors in particular eyeing the opportunities these present.
That’s because rental yields in Sheffield are better than anything currently available in London. TotallyMoney found rental yields in the Sheffield City Centre are more than eight percent. The only London neighbourhood to bring in a rental yield of more than six percent was Olympic Park.
Great Central from Knight Knox and Qualis Developments aims to help meet the growing need for private rental properties in Sheffield. The fully-furnished units at the modern apartment complex come fitted with everything residents could want. For investors, this means they can take advantage of strong rental yields without needing to worry about things such as furniture.
Want to know more about investing in Sheffield real estate? Great Central is holding a FREE information session on 14-15 July in Singapore. Click here to sign up!