Sheffield has seen extensive rejuvenation in the last twenty years. The city’s gross value added (GVA) has increased by 60% since 1997 and the economy grows steadily at around 5% annually.
The Sheffield economy is going through a strong revival. The 2004 Barclays Bank Financial Planning study revealed that in 2003, different Sheffield districts were the highest ranking areas outside London for overall wealth with a proportion of people earning over £60,000 a year stands between 10 to 15%.
Knight Frank also revealed that Sheffield was the fastest-growing city outside London for office and residential space and rents in 2004 and it has since experienced steady growth. The economy has experienced stable progress, greater than that of the broader regions around. This can be seen in the current surge of redevelopment, including the City Lofts Tower, accompanying St Paul’s Place, Velocity Living, and the Moor redevelopment.
Property investment in Sheffield has received a massive inward flow of investors in the last decade. Although a city, Sheffield is informally known as “the largest village in England” because of a combination of topographical isolation and demographic growth. The population of the City of Sheffield is 593,749 (as of 2014) and it is one of the eight largest regional English cities that make up the Core Cities Group. Sheffield is the third largest English district by population. The metropolitan population of Sheffield is 1,569,000.
Why Invest in Sheffield?
Since 2004, there has been an average yearly population growth of around 6,300 annually. This continues to guarantee the prolonged necessity of property investment and demand in the area for the anticipatable future. Sheffield being an ancient city with deep traditions also ensures the influx of tourists who make up about 3% of the yearly total population. The tourists’ attraction power of this city has generated over 26,000 jobs for the past few years which further stabilises the viability of property investment in the commercial sector.
Sheffield has also two universities, the University of Sheffield and Sheffield Hallam University. The two combined bring about 60,000 students to the city every year, of course enriching the property investment potentials of the city.
In Sheffield, rental property is being snapped up faster than it can be provided. In a financial climate where purchasing a property is out of reach for many consumers, people are relying on the rental sector to provide homes for themselves. In Sheffield, where the average property costs just under £70,000 and the average monthly rent is £645, landlords are reaping gross gains of more than 11%. This is the highest in Britain and well above the nationwide average of 4.2%. In a list of the top 20 buy-to-let hotspots for January 2015, Sheffield’s postcodes featured three times, according to “This is Money”.
The Main Areas for Property Investment in Sheffield
The most profitable areas for property investment in Manchester are in student and property investment.
The presence of two of the UK’s largest universities means that demand for student rental property is extremely high. Sheffield has a higher student capacity than housing available, making it ideal for the purchase of investment properties. Students are found to prefer moving to ready-built apartments to ease learning and reduce the stress of commuting. The market is far from providing the expected supply of accommodation, and Sheffield continues to experience unrivalled demand for student beds. Sheffield has seen a significant amount of new residential development in recent years. In between 2001 and 2015, the City’s resident population increased by 13.4% with over 56,200 persons coming in.
The renaissance of Sheffield City Centre has led to an upsurge in the supply of and demand for residential accommodation. As more employers move into the City, more employees are looking to live close to work. In the current housing market, people are increasingly making employment decisions based on the quality and affordability of available accommodation in commuting distance. Employers too are becoming more aware of this and look to locate or relocate to areas where they will be able to attract the right workforce. Having a resident population in a City like Sheffield also contributes to the feeling of places being ’24 hour’ cities through people visiting bars, clubs, theatres and restaurants rather than places which are only busy during working hours.
Investment in Sheffield’s Economy
The economy of Sheffield is experiencing a robust renaissance. The district of Hallam in the city of Sheffield has the uppermost ranking in areas asides London for total wealth promotion, the percentage of persons making above £60,000 annually is at 14.3%. Sheffield is the firmest developing city outside London for workplace and residential space, investments and rentals. This is evident in the increasing revitalisations all around the city. The forthcoming NRQ and the recently completed Winter Gardens, Peace Gardens, Millennium Galleries and many projects under the Sheffield One redevelopment agency. The Sheffield economy grew by £5.6 billion in 1997 (1997 GVA) to £9.2 billion in 2007 (2007 GVA) to £18.4 billion in 2015 (2015 GVA).
The “UK Cities Monitor 2008” placed Sheffield among the top ten “best cities to locate a business today”, the city occupying third and fourth places respectively for best office location and best new call centre location. The same report places Sheffield in third place regarding “greenest reputation” and second in terms of the availability of financial incentives.
Investing in Property in Sheffield with Sterling Woodrow
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Sheffield Property Investment FAQs
The international popularity of Sheffield in steel making and coal mining makes it a key player not only in the British economy but also internationally. Sheffield remains one of the fastest-growing cities in the UK, making it a promising city to make wise investments in all sectors. The high rental yields, steadily-increasing GVA, growing elite population, presence of renowned universities and a positive economic viewpoint indicates that it is the best time for investors to look into property investment in Sheffield.
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