Sheffield set to become a ‘Buy-to-Let’ hotspot
Low property prices, improvements to the city centre and high tenant demand due to soaring student retention rates have created the perfect conditions to make Sheffield a buy-to-let hotspot, according to one of the region’s leading lettings agents.
ELR has seen a sharp increase in the number of tenants looking for private accommodation – reporting to have placed more than 100 tenants in the past 12 months, a 19% increase on the previous year.
However, the agents say the influx of potential tenants far exceeds the number of available properties to rent.
Nick Riddle, Director of Sheffield Estate Agent Eadon Lockwood and Riddle (ELR) said: “At the moment we have 17 properties to rent on the books, and more than 100 tenants looking for good quality accommodation – especially in S7,10,11,17 and North Derbyshire – making this a great region for the buy to let market.
“The greatest demand is for 2 and 3 bedroom homes, up to about £800 pcm. However, we have had success in finding tenants for properties in the higher rental brackets.
“Property prices across Sheffield are relatively affordable but the reality is that many young people are still struggling to raise the necessary funds to put down a deposit on their first property.”
Nick believes that despite the ongoing residential development across the region, and the introduction of government subsidies and flexible mortgages, some families, young people and private buyers are still struggling to raise the funds to purchase their first property.
Richard Attwood, Lettings Valuer at ELR, said: “At present, the number of potential tenants outweighs the number of available properties available to rent.
“Sheffield’s renting population is only set to grow as high student retention rates from the two popular universities, new property developments in the city centre and investment in infrastructure and the high street attract more people to the city.”
Sheffield’s attractiveness is no disadvantage and with changes across the city landscape including new homes, renovated buildings and commercial hubs, it’s only going to become more popular.
With an influx of people moving to the city for work, students from the University of Sheffield and Sheffield Hallam University remaining in the city, they’ve grown to love and ever-developing commercial, cultural and arts scenes, those who wish to live here but don’t have the accessible funds to buy a home are turning to rented property.
The result of this is that Sheffield is becoming a buy-to-let hotspot.
Attwood said: “It is an excellent opportunity for private landlords to invest in a new property with such a high chance of finding a suitable tenant at short notice upon completion. With sensibly priced houses, flexible mortgages and the increasing price of rent, conditions are ideal for investment.”
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