Located in the middle of the UK within the South Yorkshire region, Sheffield has plenty on offer. Known as the ‘steel city’, Sheffield has grown to become England’s fourth-largest city. Exceeding a population of 635,000, the city’s ever-increasing inhabitants have pushed house prices up and increased housing demand. As one of the UK’s buy-to-let hotspots, Sheffield has been widely identified amongst property professionals as an area that will experience continued growth and remain a city popular amongst students. So what makes Sheffield the perfect city for property investment?
Sheffield city centre has potentially the highest rental yield of any British city. The average price of a flat in Sheffield rose by 10% from £118,538 in 2016 to £130,696 in 2017. The growing demand of flats for students and graduates provides a great opportunity for investors. This demand is driven not just by students and graduates, but also those relocating from more expensive areas, like Leeds and Manchester, as well as buy-to-let investors, many of which are targeting Sheffield’s vibrant student accommodation market.
As one of Britain’s ‘Northern Powerhouse’ cities, Sheffield is a prime position for inward investment. In 2015, the Government agreed to give £30 million a year to the city for the next 30 years, giving it the power to use new funding to boost local growth and invest in manufacturing and innovation. It is projected that this vast amount of investment will influence property prices throughout Sheffield and position the city on an upward curve for years to come.
Sheffield City Region’s economy has an output of more than £30 billion pounds per year and is home to approximately 52,000 businesses which have created and sustained approximately 700,000 jobs. A recent report released by the Centre for Economic and Business Research found that the city’s economy is set to become £80m larger by the end of 2017. The UK Powerhouse report predicts that the value of goods and services produced in Sheffield will grow by 0.7% during 2017 despite the challenges of Brexit.
In February 2017, McLaren announced a new £50m plant that will create 200 new jobs in the city. The investment, supported by the council, could be expanded in the future is just one of many investments that will boost the local economy.
Sheffield station, a combined railway and tram stop, runs frequent services to London St Pancras. The journey currently takes 2 hours however, this is expected to be reduced to just over an hour when the HS2 construction project is completed. It’s proposed that HS2 will run from London to Birmingham, then on to Manchester and Leeds calling at Sheffield; which would reduce the journey time from London. The journey time to Leeds and Manchester will also be less than half an hour. The station’s annual footfall is over 9 million passengers providing access to destinations up and down the UK.
The University of Sheffield and Sheffield Hallam University combined attract over 60,000 students to the city every year, including many from the Far East. The two universities are highly regarded, with The University of Sheffield rising to 21st in The Times University Guide 2018 – a ranking that highlights the University’s strong performance in providing graduates to leading employers.