Why investors are getting ahead of the curve in Sheffield?

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Located in the North of the UK, Sheffield is home to two major universities that house up to 60,000 students every year. Most commonly known for being the centre of the steel industry outside of London until the 1970s, Sheffield is now being revitalised as a hub for banking, insurance and technology institutions flooding into the area.

Location:

Sheffield’s location is a key element to its favourable portfolio, access to the city is suitable located just of the M1 and at the foothills of the peak district in south Yorkshire. Sheffield is popular via rail link due to Sheffield station that is connectable to all the UK’s major cities including Manchester, Liverpool, Birmingham & London. There is a £137 million investment into the transport link between Manchester and Sheffield on the valley line used by 4.2 million people yearly in order to reduce the travel times which currently can take just over an hour often resulting in commuters opting to travel via car. The new investment will help encourage more business links between the two major cities along with HS2 which will allow a much faster rail link to the south from Sheffield in the coming years for residents and those looking to do business in the area.

Regeneration:

The Sheffield city region is undergoing heavy investment to boost the city’s economic output and rival its neighbouring city of Manchester to be the powerhouse of the north. The £470 million heart of the city II project is investing into the city centre redesigning and developing 1.5 million sqft of buildings including a new urban park all part of Sheffield councils’ mission to becoming a more environmentally stable city. The focus of the project is to bring a mixture of high-quality retail, food & drink outlets to cope with the demand of the city’s population a key factor being the two major universities housing up to 60,000 students each year. Over recent years International companies such as Boeing, McLaren Automotive, Rolls-Royce, Tata, and Toshiba setting up operations in the area has helped boost the economy of the Sheffield region and increase the population of the workforce as many graduated who attend the city’s university’s now have the opportunities to stay in the area.

Demand:

Sheffield as of 2019 had a population size of 584,028 larger than that of its famous neighbour Manchester is the UK’s fourth-largest city and over the last year has seen some of the highest demand for property across the UK. The annual house price growth across the UK was 4.1% in February 2021 for the year and Sheffield’s is proving to show strong levels of price growth at 5%. However, the supply of housing is not catching up to demand and the city requires new places to live. Factors for this demand may be the recent stamp duty tax relief and Sheffield house prices on average at 147,000 falls well into this category for relief. The recent government announcement of the 95% mortgage will allow new homeowners to only have to put down a 5% deposit and be encouraged to enter the housing market. Estimates show that population increases across the all-important future buyers and renters aged 20 to 24, Sheffield will need nearly 40,000 new homes by 2038. Sheffield is already a vibrant and performing city however the recent increase in investment from major companies and the council means new housing is needed for residents and workers in the area at a high demand making the city an ideal buy to let investment.

The coronavirus pandemic still leaves uncertainty of the housing market however with the vaccine in full roll out and the UK leading the way across Europe there isn’t a stronger region to look at when choosing your next property investment. Sheffield has a growing population size and regeneration projects that outweigh its supply of housing to the new influx of workers and students who are now more than ever looking to the UK’s smaller cities for opportunities. Not the traditional hotspot of London, Sheffield offers an opportunity to get into a market ahead of the curve and take advantage of the low property prices in comparison to its Rival cities such as Manchester and Liverpool.

Source: Zoopla

 

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