1. Market-leading returns and capital growth
JLL recently reported that rents in Sheffield increased by a significant 9% annually (2022-23). Achieving average city centre rental yields of 6.4% (with some reaching 7.2% in the S1 postcode according to Property Data), it’s no surprise that Sheffield is turning the heads of property investors.
While sold prices are up by 18% on the 2020 peak, property in Sheffield remains affordable by comparison to other popular investment cities. Seeing steady capital growth over the last five years, experts predict that Sheffield property prices will see a 20% increase over the next five years, making now an ideal time to invest.
2. Thriving job market
Major blue-chip employers such as Siemens, HSBC, Boeing and IBM have an established presence in Sheffield, creating vast career opportunities and attracting high earning professionals seeking long-term rental homes.
Business incubation spaces and innovations such as the Advanced Manufacturing Park (AMP) have led to a thriving media, tech and creative sector, raising Sheffield’s profile as a digital hub.
3. Sheffield City Centre Strategic Vision
The government-funded ‘Strategic Vision’ sets out some exciting long-term goals for the city and its residents.
To accommodate for population growth of 60,000 people by 2043, Sheffield City Council have already started mass regeneration of the city centre, with over GBP 470 million invested to develop a key section of the city’s central spine. The plan also sets out to create over 7,000 new jobs and boost economic activity by GBP 3.7 billion by 2030 – exciting times for Sheffield!
4. University city (student population of 67,000)
Home to two major universities including one of the UK’s top institutions, The University of Sheffield, and Sheffield Hallam University, the city’s student population is at an impressive 67,000. The University of Sheffield is within the top 20 universities in the UK, and the top 50 in the world.
Of over 15,000 graduates leaving Sheffield’s universities every year, over 6,000 (42%) of those graduates choose to stay living in areas in Sheffield to start their careers, adding to a growing talent pool of young professionals seeking quality rental accommodation.
5. Value for Money
Prices remain incredibly low in comparison to other cities similar in their offering. It’s most likely because Sheffield is the furthest behind in the property cycle. So investors can benefit from strong rental yields now while anticipate a high probability of significant growth in the long-term.
