• 5 year house price forecasts a 28% increase
• Economy has grown 151% since 2000
• GDP per capita has risen 123% since 2000
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Situated in South Yorkshire, Sheffield has undergone a remarkable revival since its post-industrial decline. The city's resurgence, fuelled by large-scale regeneration efforts and economic initiatives initiated by the 1997 Labour government, has transformed it into a thriving modern cosmopolitan hub with promising investment opportunities. With a strong foundation in engineering and manufacturing, Sheffield's economy has flourished, nearly doubling in size since 2000.
Entering its third phase of regeneration, Sheffield’s investment properties are experiencing a surge in private sector-led growth, indicating a bright outlook for the city's future. Renowned for innovation, Sheffield has become a magnet for a diverse range of SME businesses, driving population growth among graduates and young professionals.
Currently boasting a population of 568,960 residents, Sheffield stands as the UK's fifth-largest city. This rapid growth has strained the existing housing supply, including that for investment property, leading to a significant shortage of housing. Projections indicate a shortfall of 11,328 units by 2035, resulting in rising property prices and creating an ideal landscape for investment properties in Sheffield.
Sheffield's history is rich and varied, gaining early prominence in the 14th century for its production of blades and knives, establishing a reputation for quality cutlery. The city's trajectory changed dramatically during the Industrial Revolution in the 18th and 19th centuries, when it became a major industrial hub. Renowned for its steel production, Sheffield earned the nickname "the steel city," contributing significantly to global industry and innovation. However, the decline of the steel industry in the late 20th century brought economic challenges. In recent times, Sheffield has successfully reinvigorated itself by diversifying its economy, focusing on sectors such as health, education, and advanced manufacturing. This resurgence has made Sheffield investment properties highly attractive, offering promising opportunities in a revitalized urban landscape.
As of 2023, Sheffield is home to over 560,000 residents. The city's population has experienced an average annual growth of 2,365 inhabitants since 2000, and it is projected to increase by 3.8%, reaching more than 591,000 residents by 2040.
Sheffield's house prices have seen an impressive average annual increase of 13%. Over the next few years, property prices in the region are expected to rise by an additional 28% up to 2030.
Thanks to Sheffield's effective recovery plan, the economy has expanded by 136% since 2000, totalling over GBP17.8 billion in 2023. Furthermore, the economy is anticipated to grow by an additional 83%, reaching GBP32.6 billion by 2040.
Located within the South Yorkshire Mayoral Combined Authority (SYMCA), which includes the towns of Barnsley, Doncaster, and Rotherham, Sheffield stands out as the primary city and a major employment hub in the region, particularly for highly-skilled jobs.
Sheffield's economy has evolved, transitioning from a dependency on manufacturing and engineering to embracing diverse industries such as finance, healthcare, energy, technology, and digital sectors. Boasting one of the top 40 universities in Europe, Sheffield is rapidly emerging as an innovation centre. The University of Sheffield generates a steady stream of highly educated young professionals who fuel business growth and infuse fresh ideas into established enterprises.
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 making Sheffield investment properties a lucrative choice.
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 price growth with Sheffield investment properties 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 fuelled 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 GBP470 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. This makes Sheffield investment properties a great choice for those who want to remain environmentally conscious.
Average house price: GBP144,787
Average rental yield: 7.0%
With its high rental yield and proximity to universities, employment hubs, and amenities, Sheffield city centre is an attractive location for young professionals and students alike. The "Heart of the City II" project is a key part of Sheffield’s transformation, adding new leisure, retail, and office spaces to revitalize the area.
For young professionals, the close proximity to job opportunities reduces commuting time, allowing more time to enjoy the city's vibrant social scene. Students benefit from easy access to the University of Sheffield and Sheffield Hallam University, as well as ample recreational and cultural venues.
Average house price: GBP158,330
Average rental yield: 7.7%
Kelham Island, once the beating heart of Sheffield's industrial past, has transformed into a captivating blend of the old and new. Its historical significance is preserved through the renowned Kelham Island Museum, attracting curious minds from across the country. This trendy neighbourhood boasts a unique character, with a mix of modern apartments nestled amongst thoughtfully refurbished industrial buildings. Sheffield investment properties in Kelham Island are highly attractive due to the area's vibrant atmosphere. Bustling with trendy bars and innovative restaurants, it's become a magnet for young professionals seeking a dynamic and stylish lifestyle.
Average house price: GBP375,570
Average rental yield: 3.4%
These areas are popular among families and students due to their proximity to the University of Sheffield, excellent schools, and local amenities. Shops, parks, cafes and restaurants not only make S10 a desirable place to reside but also increases the rental appeal for investors alike.
Average house price: GBP399,656
Average rental yield: 3.3%
Ecclesall Road thrives as a vibrant commercial and residential district, attracting young professionals and students with its diverse offerings of shops, bars, and restaurants. The area boasts excellent transport links, ensuring convenient access to Sheffield city centre, which further enhances its appeal. Moreover, ongoing developments in and around Ecclesall Road suggest a promising future, creating a fertile ground for both commercial and real estate investment opportunities. Investors can choose from a variety of property types, including modern apartments and traditional terraced houses, allowing them to tailor their investments to specific strategies.
Average house price: GBP233,874
Average rental yield: 4.6%
This suburb offers a variety of Sheffield investment properties at affordable prices, making it an attractive location for families and young professionals. It also benefits from good transport links to the city centre and local amenities.
Average house price: GBP242,147
Average rental yield: 4.2%
Sheffield's S8 postcode entices residents and investors alike. It offers a diverse housing mix, from starter homes to family-friendly options, alongside excellent schools and the vast green expanse of Graves Park, the city's largest. Woodseats, a vibrant area within S8, fosters a strong community with its pubs, cafes, and independent shops. This combination of affordability, amenities, and community spirit translates to lucrative investment opportunities, with possibilities for strong rental yields and capital appreciation.
IP Global has identified two exceptional investment opportunities in Sheffield for its investors: Langford Tower and Kelham Ridge. Langford Tower, located in the heart of Sheffield, offers sweeping city views and is a landmark development. IP Global has secured exclusivity on 97 units for our clients. On the other hand, Kelham Ridge is situated near historic Kelham Island, once a center of manufacturing. The area's old factories and workshops have transformed into trendy galleries and microbreweries, giving it a unique charm. With 84 units available, Kelham Ridge is expected to attract the growing young, professional, and student community. The combined investment value of these developments is USD24 million.
Although house prices in Sheffield are currently more affordable than in Manchester, Birmingham, and Leeds, the market is expected to grow. House prices in Sheffield are projected to increase by 11.7% by 2027.
Sheffield investment properties are an excellent opportunity for wealth creation. With explosive economic growth and a rising demand for properties, the city has attracted numerous businesses and firms seeking to leverage its growing population and highly educated workforce. Although regeneration projects aim to address the housing demand, the supply is not expected to meet the need fully.
However, it continues to be one of the most budget-friendly locations in the UK for purchasing real estate. Sheffield's investment property market is an ideal choice for investors seeking a secure and profitable buy-to-let investment at a reasonable cost.
Rental yields in Sheffield vary significantly by postcode, making it difficult to provide an accurate average. In some areas, rental yields are as low as 3%, while others can reach over 6%. It is also dependent on whether the property will be let on a short-term or long-term model.
We offer free consultations with our experts to provide precise information based on comparable listings in the market ensuring you have an optimal return on investment.
The city offers affordable housing and living costs compared to other major cities in the UK, making it attractive for both professionals and families. Additionally, Sheffield is home to two reputable universities, The University of Sheffield and Sheffield Hallam University, which provide excellent educational opportunities. The city also boasts a vibrant cultural scene with various festivals, events, and a thriving music scene. With access to beautiful green spaces and the nearby Peak District, Sheffield combines city living with the advantages of a more rural environment, making it an appealing place to live in 2024.
Sheffield is definitely worth considering for experienced property investors looking to diversify their portfolio in 2024. Here's why:
Thriving and Diverse Economy: Sheffield boasts a diverse and expanding job market, attracting a steady stream of professionals and students. This creates consistent demand for housing across various price points.
Affordability: Compared to major cities like London, Manchester, and Birmingham, Sheffield offers significantly lower property prices. This translates to a more accessible entry point for investors and potentially higher rental yields.
Growth Potential: With a growing economy and ongoing developments, Sheffield is poised for future growth. This presents a strong possibility for capital appreciation on property investments.
The best places to purchase Sheffield investment properties typically include areas with strong rental demand, good transport links, and potential for capital growth. Some of the most promising areas for Sheffield investment properties are:
Sheffield, UK
Langford Tower is a landmark development situated in one of the most sought-after postcodes in Sheffield.
Sheffield, UK
Kelham Ridge, Sheffield, is comprised of studio-, one- and two-bedroom apartments featuring contemporary interior design ...
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