Top UK Cities for Property Investment: Sheffield30 11 2018
Idyllically situated on the edge of the Peak District in South Yorkshire, Sheffield has evolved from a powerhouse of the steel industry in the 19th century to a leading manufacturing and engineering hub in the 21st.
Sheffield earned its nickname ‘Steel City’ as one of the world’s foremost steel manufacturers, pioneering new production methods and inventing what is today known as ‘stainless steel’.
Global competition in the steel industry led to the city’s decline in the 20th century but it has since reinvented itself. Fueled by it’s two leading universities, the city’s professional, scientific and technical sectors have seen tremendous growth in recent years. It has become a thriving modern city and a leading destination for sports, culture, and business.
At Alesco, we consider Sheffield one of the top locations in the UK for property investment. Here’s why.
Culture, history and trees
With a third of the city in the Peak District and the highest ratio of trees to people in Europe, the Steel City has become the Outdoor City. It boasts the highest household spend on outdoor equipment in the country and world-class walks, climbing routes and bike paths.
Those looking for culture and history are spoilt for choice. Highlights include the largest theatre complex outside London, the Millennium Galleries – which is the North’s most visited free attraction – and the popular Kelham Island Museum, which showcases Sheffield’s impressive industrial past.
Sheffield is also a haven for sports lovers. The city hosts the annual World Snooker Championship and has two major football teams – Sheffield Wednesday and Sheffield United.
This diverse cultural and leisure scene combines with an affordable lifestyle and outstanding job opportunities to make Sheffield a prime property investment location.
A magnet for investment
The city has attracted tremendous investment from both government and industry recently.
The £480MM Sheffield Heart of the City II project will see the development of the flagship HSBC building – securing nearly 3,000 jobs – along with new commercial spaces over an area stretching 1.5 million sq ft. The project focuses on preserving the city’s historic architecture alongside the new developments for a modern city with a unique personality and aesthetic.
Elsewhere in the city, the Council has pledged nearly £800,000 to revamp the Castlegate Quarter – the oldest part of Sheffield. The plan is to create a new green corridor and transform derelict shops and buildings into spaces for businesses and tech startups.
When it comes to transport connections, the planned HS2 high-speed rail link will reduce travel times between Sheffield and London to 87 minutes.
The city’s large pool of skilled labour and infrastructure improvements has meant an influx of major engineering companies. In 2018, supercar manufacturer McLaren opened a £50m innovation and manufacturing facility while Boeing, the world’s largest aerospace company, opened a new factory – their first in Europe.
Pioneering research and development
Sheffield has a global reputation for innovation, delivering research-led, technology-based solutions that create new opportunities for trade and investment.
Sheffield Hallam University is building on this reputation with their £14m Advanced Wellbeing Research Centre, set to become the most advanced R&D centre for physical activity in the world.
The centre will sit alongside Sheffield’s Innovation District – a major business hub and home to brands including Boeing, Rolls-Royce and Toshiba. The district was born out of a unique partnership between Sheffield’s two universities, private business and local government.
The resulting rush of talent to the city and increased graduate employment opportunities are opening up the property investment market in new, exciting ways.
High growth and high yields on property
The significant regeneration seen by Sheffield have meant property prices are growing by over 5% a year, the highest in the UK by some estimates. Its current population of 560,000 is expected to grow to 633,000 by 2037, increasing the demand for high-quality properties even further.
Sheffield’s S2 postcode is currently ranked 8th in the UK for the best buy-to-let areas with an average property asking price of £125,483 and rental yields of 8.16%. The average house price for Sheffield as a whole sits at around £200k, compared to the UK average of £310K.
Its recent investments and great potential for high growth and high yields make Sheffield well worth considering for buy-to-let investments.
Here at Alesco, we have a wide range of exclusive opportunities in the city; most are listed on our website here but to hear about our full range – including our off-market options – give us a call today or fill in your details below.