One of Leeds’s most iconic suburbs has been named the UK’s top rental hotspot.
Comparison site Totally Money’s research revealed that landlords’ yields in Headingley are the highest in the country, often exceeding the 10 per cent mark. The national average is just 3.3 per cent.
The huge increase in the LS6 postcode area’s profitability has come after its traditional popularity with university students declined, leading to a change in the profile of tenants.
Headingley-based lettings agency Morgans, which has offices on Otley Road, has seen a significant change in the type of house-hunters attracted to the historically affluent suburb as students have moved closer to the city centre, leaving many large rental properties needing new occupants.
Managing director Jonathan Morgan said:
“In recent years Headingley has changed dramatically. Whereas students once played a large part in the area, the vast majority have deserted this traditional heartland in order to live as close as possible to the city, as well as Hyde Park and Woodhouse, which are both on the up in terms of the popularity stakes.
“As a result, many student landlords in Headingley are upgrading their properties so they will appeal to young professionals and families in the private rented sector. Lots of our tenants are now recent graduates, teachers, lecturers and young doctors who appreciate Headingley’s proximity to the university and hospitals as well as its parkland, transport links and the ever-growing array of shops, bars and restaurants.
“Many of those who would have previously focussed their home search around Chapel Allerton can no longer ignore the pull of Headingley, and this surge of demand has led to strong rentals over the last few years - we expect this to continue. Although property values are also rising, this is happening at a slower rate, and that’s why the area can deliver impressive rental yields.”
The agency claims that Headingley’s mix of period and new-build properties of varying sizes makes it ideal for buy-to-let investors looking for security and long-term prospects.
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