Sheffield: The Re-Invented City

With its well-connected location, the SYMCA has become an appealing destination for numerous companies to invest in. The region is now home to an impressive array of large-scale industries and collaborations with top firms such as McLaren, Rolls-Royce, Boeing, and HSBC. Sheffield's sizable population of young professionals makes it an attractive location for both large companies and SMEs looking to tap into a pool of talented and highly educated graduates.

Due to Sheffield’s explosive economic growth, the household incomes of its residents have followed a similar upward trajectory. By 2035, the lowest income bracket is anticipated to decrease to 38,560, a 70% reduction from 2010. Meanwhile, the number of households in the middle and upper-income brackets is expected to grow significantly, with increases of 68% and 1,015%, respectively, over the same period.

Sheffield has emerged as a magnet for students attracted by its cultural diversity and reputation for outstanding university education. The city is home to the University of Sheffield, ranked among the top 15 in the UK and 48th globally. Additionally, Sheffield Hallam University was recently named The Times' and the Sunday Times' University of the Year for Teaching Quality.

Ranked 60th in the QS World University Rankings' Best Student Cities, Sheffield boasts a sizable international student population. Of the 55,368 full-time students, 22% come from outside the United Kingdom, further enriching the city's vibrant and diverse atmosphere.

Sheffield's burgeoning population, driven by its large share of young residents, is fuelling a surging demand for housing, particularly in the rental sector. As 42% of graduates opt to remain in the city, Sheffield's student population ensures a steady demand. This younger demographic, possessing higher education qualifications, attracts businesses seeking a skilled workforce.

Compared to neighbouring cities in the North, Sheffield offers an affordable lifestyle for young professionals, making it an increasingly attractive destination. The influx of residents seeking the city's thriving lifestyle and job opportunities further fuels rental demand. Sheffield's projected population growth will place added strain on the housing market as supply struggles to keep pace. Investors can expect strong demand and rising rental prices as a result.

Sheffield's construction activity has struggled to keep up with the soaring demand driven by rapid population growth since the early 2000s. Between 2011 and 2020, only 7,600 housing units were added, bringing the total stock to 38,877 units by 2021. With an average of just 760 dwellings constructed per year over the past decade, the council's projected supply of 2,222 units per annum through 2039 is unlikely to be met. This has resulted in a significant undersupply of new-build, investment-grade properties in the city. A shortfall of 14,114 homes is projected by 2032, highlighting the persistent imbalance between housing supply and demand in Sheffield.

Sheffield's robust economic growth in recent years has fueled investment in numerous regeneration projects, positioning the city as an eco-friendly and modern urban centre. Consequently, Sheffield was ranked among the top 5 eco-friendly cities in the UK. Its most ambitious regeneration endeavour, the £470 million Heart of the City project, is currently underway and expected to generate 7,000 job opportunities by 2024.

The city is also a leader in energy research. The University of Sheffield's Translational Energy Research Centre, inaugurated in 2021, stands as one of Europe's largest and most advanced research and development facilities. This cutting-edge centre serves as a hub for academic and industry collaboration in the fields of bioenergy, zero-carbon production, carbon capture and storage, and combustion technology.