Lomond Insights: Yorkshire property market Q2 review
As we reached the midway point of the year, the Yorkshire property market looks different to the end of its first quarter. Price and inflation changes have knock-on effects in the selling and buying market, while the private rental sector continues to grow.
The rental market in Leeds is flourishing, making it an ideal destination for investors. With over 15,000 rental properties managed in the region, a 19% year-on-year increase, there are plenty of opportunities for potential investor landlords. Leeds city centre and its suburbs have become a hot spot for activity, with indicative gross yields of 6.3% for a one-bedroom apartment and 7.1% for a two-bedroom.
Leeds itself is experiencing substantial investment, with over £3.9 billion already invested and a further £7.3 billion of development in the pipeline and under construction for the next decade. This ongoing growth is expected to boost the local economy by 21%. Additionally, with over 134,000 job opportunities and being home to the third busiest railway station outside of London, Leeds offers a vibrant lifestyle with its cafes, restaurants, shopping, culture, and nightlife.
In terms of rental regulations, the proposed Renter Reform Bill has generated significant interest among agents, landlords, and tenants. Changes to Section 21 and Section 8 legislation are being closely monitored, as well as requirements for improved energy efficiency in properties. Over 93% of properties let in the past year have the potential to reach an EPC 'C' or higher, although only 48% currently meet this standard. Renters are also eagerly anticipating any regulations that make it easier to find pet-friendly properties and move in or between them.
Apart from the rental market, the sales market in Yorkshire and the Humber has been robust, with an increase in activity compared to the beginning of the year. With favourable average house prices and significant numbers of properties available, both buyers and renters have been capitalising on the opportunities.
Over 70% of home movers and more than 90% of first-time buyers in the region benefit from zero Stamp Duty Land tax when purchasing their primary residence. In terms of house sales, the majority of apartments and 87% of 3+ bedroom houses sold across the region were priced below the £250,000 tax threshold.
HOW WE PERFORMED IN Q2
Despite fluctuations in the current markets, our property experts continue to deliver brilliant service to our thousands of customers.
While we continue our efforts to grow the company even further, our teams produced the following numbers in Q2:
SALES (per branch)
35 new instructions
14 contract exchanges
6 applicants per property
LETTINGS (per branch)
12 new instructions
34 applicants per property
72 new tenancies agreed
Martin Elliot, Chief Executive Officer, summarised: “Sales and lettings market activity is stronger than at the start of the year, and we have a good stock of properties available for those looking to buy or rent."
You can read the full summary of the Yorkshire property market below, or click here to learn how Lomond is transforming the UK property market, notably in the investment sector.