The northern city of Sheffield is garnering global attention as a stand-out property investment prospect for 2024.
Named one of the best UK cities for investment opportunities last year by Zoopla, Sheffield’s market-leading rental yields, low capital entry point and strong five-year growth projections are firmly establishing the city as a buy-to-let investment hotspot.
Is Sheffield a good place to invest in property? Here are 8 unmissable reasons to consider a Sheffield property investment in 2024.
1. University city (student population of 67,000)
Home to two major universities including one of the UK’s top institutions, the University of Sheffield (Russell Group), 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.
2. Second fastest growing city economy in the UK
Recently voted by TimeOut as the second best city break destination in Europe, this South Yorkshire city attracts over 15 million visitors a year, bringing an estimated £1.35 billion boost to the city’s local economy in 2022.
Named the second fastest growing city economy in the UK, Sheffield has a growth rate of 12.4%, developing three times faster than London. Once known as ‘The Steel City’ for its role in steel manufacturing, key industries today are advanced manufacturing, tourism, creative and digital industries, food, and biomedical technology.
3. England’s 4th largest city with a rapidly growing population
As England’s fourth largest city, Sheffield has a population of 746,000. Increasing by 6,000 people between 2022-23, the city is experiencing a chronic shortage of quality rental properties. Attracting renters with its thriving job market and vibrant arts, food and drink scene, the city is experiencing a cultural rejuvenation fuelled by government inward investment in tourism, infrastructure, and education, aligning with Sheffield City Council’s goal to increase the city population by 60,000 people by 2043.
4. 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.
5. A city that appeals to all rental demographics
A vibrant metropolis with award-winning restaurants, quintessentially British pubs, art galleries, prestigious schools, independent businesses and shops with major brands, Sheffield attracts a wide rental demographic. Proximity to Manchester and Birmingham also makes Sheffield an ideal commuter hotspot by railway or road.
Its 250 parks create an outdoor lifestyle of wellbeing and balance for residents, inviting young professionals, couples, and families with children of all ages. Also a city renowned for its music scene as the birthplace of iconic bands, Arctic Monkeys, The Human League and Def Leppard, Sheffield fosters artistic talent and is a hub of creativity.
6. The UK’s ‘greenest city’
Sheffield was recently crowned ‘the greenest city’ in the UK, boasting 4.5 million trees (more per person than any other city in Europe), and 250 public parks for residents to enjoy. And with the Peak District just a 15-minute drive from the city centre, Sheffield is surrounded by rolling green hills across 52 square miles of national park.
An increasing priority of Generation Z (a prime demographic entering the rental sector), Sheffield also emerged as the UK’s eco-friendly leader, ranking highly on several criteria including green energy production as well as its goal of becoming a net-zero carbon city by 2050 (BBC).
7. 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.
8. Sheffield City Centre Strategic Vision
Last but not least, Sheffield’s 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!
Introducing Velocity Tower, Sheffield city centre
A stand-out project with huge growth potential in the heart of the city centre, Velocity Tower completes in February 2024 meaning you could earn immediate rental returns. Boasting a prime location (just a 10-minute walk from both universities), unrivalled amenity space and beautiful apartments, Velocity Tower will revolutionise the Sheffield rental market.
- Starting price GBP 168,000
- Predicted yield: 6.4% gross
- Capital growth forecast: 20% over five years