Despite widespread stagnation and a marked cooling off of activity within the UK property market, the County of Yorkshire has remained buoyant, according to property consultancy LH1 Global.
The largest county in the UK, Yorkshire is home to eight cities, with the City of York recording the strongest property price rises in 2022, with values increasing by 23.1%, or by £69,648 on average. This is closely followed by Leeds, which has undergone an incredible transformation over the past decade, with value growth of 15.3% since December 2021, which is in contrast to average prices rises of 9% countrywide over the past 12 months, the firm says.
The historic region, famous for its rolling hills and dales, as well as the production of tea and steel, has not been immune to the current market difficulties, with average asking prices across the county dropping by 2.1% in 2023. However, overall asking price growth is still up 7.1% in Yorkshire over the past 12 months, whilst Rightmove has recorded an 11% increase in home searches in Yorkshire compared to 2022.
Rental values are increasing fastest in the largest UK cities with student populations, of which there are many in Yorkshire, including Sheffield, which recorded a 12.4% year-on-year increase in average rents, while rents in Leeds are up by 11%, and York and Hull recorded increases of 6.5%.
Rayna Hunter, CEO at LH1 Global, commented: “Analysis and consideration of the UK property market typically tends to focus on the major cities of London, Manchester, and Birmingham. However, Yorkshire has the largest concentration of major cities than any other county. We have seen exceptional regeneration projects transform places such as Leeds, Sheffield, Bradford, Halifax, and York and when you compare the market performance across the county to other areas then it is a no-brainer for investors to consider these fantastic locations.
“The current and future projected price growth across Yorkshire means that there is going to be a lot of activity here in the coming years, especially with some fantastic new developments in the pipeline.”
Typically, investors from overseas opted for the London market, due to its position as one of the most popular cities in the world, however, there has been a migration to regional cities in recent years, with Yorkshire recording a 250% increase in enquiries from those based outside of the county since the beginning of the pandemic in 2020, according to the report.
The report outlined the opportunities in the region, stating: ‘In terms of property value growth, it’s difficult to find a better location than Sheffield. A progressive and innovative city, Sheffield is a popular student location, with two universities, which has made it one of the hottest locations within the UK's thriving buy-to-let market.
‘Recently voted the UK City of Culture for 2025, Bradford is fast becoming the rising star of Yorkshire. Due to its ever-growing economy of £11.6bn, Bradford has been earmarked as an area of significant inward bound investment, with savvy investors realising that Bradford is in a similar position the city of Leeds was in a couple of years ago and are anticipating sharp increases to property values.’
LH1 Global’s current Bradford development ‘The Printworks’ comprises a collection of 137 one and two-bedroom apartments, with prices ranging from £120,000 to £155,000. The Printworks is the former home of Hallmark Cards and consists of a Grade II-listed conversion, with two ground-up new build blocks, adjacent to parkland, a golf course, and a school.
The report continues: ‘Leeds has become best known in the property sector as a student city, which lends itself perfectly to buy-to-let investors, with a steady annual demand for quality apartments in city centre locations. Property prices in Leeds have been rapidly rising in recent years, with values increasing by 7.8% in 2021 and by 15.3% since in 2022.
‘The five-year total shows that property values in the city have leapt 23.8% overall, thanks to continued regeneration of various areas in and around the city centre.
‘Another strong performing, but regularly overlooked, area of Yorkshire is Halifax, which has achieved a 2% growth in sold prices in the past 12 months and a 7% increase on the 2020 market peak. Halifax is perfectly situated in-between the Peak District and Yorkshire Dales, which makes it a popular tourist destination contributing towards the town’s ever developing economy.
‘Currently on the market with LH1 Global is Halifax House, a fully tenanted development, which comprises a contemporary collection of studios, one and two-bedroom apartments, with prices starting from £89,950. Gross yields at Halifax House are reaching as high as 8% on straight ASTs and the yields for Short-Term Corporate Lets are even higher.’
