Is Sheffield a property investment hotspot?
Sheffield has a fascinating industrial history, and we have the city to thank for the invention of stainless steel. While the early 1980s saw a decline in industry within the area, by 2008 Sheffield was ranked among the top ten business locations in the UK, and the city continues to go from strength to strength. As such, Sheffield property investment is a hot topic. In this article, we’re going to look at the reasons why the demand for housing in the city is on the increase, and whether you should consider commercial property investment in Sheffield.
Should I buy property in Sheffield?
Sheffield is in an almost perfect location as far as property investment is concerned. Situated on the edge of the Peak District National Park, modern-day Sheffield is a far cry from the steel mills of the past. In fact, it’s now one of the greenest cities in the UK and has been named a Tree City Of The World.
As far as travel connections go, Sheffield is also perfectly positioned. It sits right next to the M1 motorway, which means those who need to commute further afield can do so with ease via the North’s main motorway. Plans for a trans-Pennine tunnel that connects Sheffield to Manchester are also tentatively in the works.
For those who use public transport, the Sheffield Supertram is well-maintained and allows seamless travel throughout the suburbs and to nearby Rotherham. The city will also be connected to the government’s new HS2 high-speed rail project, which will make rail travel to London possible within 87 minutes.
With great transport links, amenities and work/study opportunities, it is no wonder why so many buy-to-let investors are considering Sheffield as a viable option. This trend is expected to continue over the next two decades at least - which we’ll explain in detail below.
Why invest in buy-to-let property in Sheffield?
Sheffield is one of the fastest-growing areas in the UK. This means demand for accommodation within the city is at an all-time high. At present, census data suggests the population of Sheffield sits at just over 575,000, with official forecasts suggesting the ‘Steel City’ will be home to some 652,000 residents by the end of the next decade, an additional 80,000 people who will require housing by 2040.
While Sheffield’s industrial past has left an indelible influence on the city, new technology is what is currently driving the demand for housing in the area. Many businesses have moved to the city (or are in the process of moving) with the intention of providing well-paid jobs in innovative high-tech sectors.
One such example is the Advanced Manufacturing Park in nearby Rotherham, or AMP, which has been granted enterprise zone status. Within the AMP, you’ll find engineering stalwarts like Boeing, Rolls Royce, and McLaren, the latter of which has recently sent up a brand-new Composites Technology Centre. In addition to this, the University of Sheffield has made a home for its own Advanced Manufacturing Research Centre within the AMP.
Each of these organisations is continuing to drive technological innovation in the area, to the point where the AMP is set to expand by over 430,000 square feet, with up to 2,000 new jobs set to be created via the development. This will undoubtedly create some of the best opportunities for commercial property investment Sheffield has offered in decades.
Student property investment Sheffield: is it still viable?
Increasing numbers of businesses specialising in new technology are being drawn to Sheffield, and this is partly because the area attracts many of the best and brightest young engineering minds from around the world. Sheffield is a massive university city and is home to approximately 60,000 students at any one time.
This means that around one in ten residents in the city is currently studying. As any buy-to-let investor should know, students tend to rent, which means there is a huge demand for rental property in the area. The University of Sheffield has two campuses in the city - one located in the centre of Sheffield, and another two miles away on Eccleshall Road - an area that has a reputation for being vibrant, diverse, trendy and desirable for students to live.
In fact, many of the suburbs close to the city centre prove popular with students looking for multiple-occupancy housing. Broomhill, Crookesmoor, Crookes, Broomhall, Hillsborough, Millhouses, Ranmoor, Woodseats and Hunter’s Bar - which was famously mentioned in an Arctic Monkeys track - all have some of the best opportunities for student property investment Sheffield has to offer.
For further information, why not use our Property Postcode Data tool to find the best areas by postcode for Sheffield property investment?
Are house prices falling in Sheffield?
For those on a budget, Sheffield property investment makes perfect sense. While it is a city on the rise, it’s also one of the cheapest major areas in the UK to purchase property. The average property price in Sheffield is just over £138,000 - with only Newcastle and Liverpool offering better value for money as far as comparative university cities go.
While property prices have a tendency to fluctuate from postcode to postcode, average property prices in Sheffield have risen by over £30,000 over the past fifteen years. This represents one of the largest increases of any major UK city and offers the sort of capital appreciation no would-be property investor would sneer at.
If you would like further information on Sheffield property investment, why not sign up to PropertyData for a free two-week trial? You’ll gain access to real-time property price data by postcode, along with a wealth of tools that will provide you with detailed information that could facilitate more informed investment decisions.