A property expert has identified a Yorkshire city as a great location for buy-to-let seekers. (Image: Getty)
A expert has singled out a UK city as ticking all the right boxes for people seeking buy-to-let purchases.
Buy-to-let are homes that buyers purchase with the intention of renting it out to tenants. Specific buy-to-let can be used to purchase them, most of which are interest only. This meansmonthly payments are only the interest on the loan without the requirement to repay “capital”, as with a repayment , explains.
Joseph Lane, Founder and Director of a brokerage specialising in supporting investors, developers, and business owners, picked out a city as a good location for those seeking an investment of this kind, due to its comparatively low prices and strong local demand.
Lane said: “There are multiple reasons why the city of Sheffield should be on the radar of any landlords looking to begin or grow their portfolios in 2025.
“Buyers should be searching specifically in areas close to the city centre and within the vicinity of the university campuses.”
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Lane recommends looking for properties close to the city centre and uni campuses. (Image: Getty)
For standard rentals, two-bedroom flats are popular among young professionals and small families, and according to the firm, they’re typically priced around £180,000.
For Houses in Multiple Occupation (HMOs), larger four to five-bedroom houses are described as ideal, catering to students and young professionals, with prices averaging at £240,000, according to .
Another factor that makes Sheffield attractive for buy-to-let investors is the robust demand, partly due to its large student body across its two major universities, the University of Sheffield and Sheffield Hallam.
This is also driven by an influx of young professionals in healthcare, education, and the digital industries.
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Sheffield benefits from a sizeable student population (Image: Getty)
According to the firm, landlords focusing on standard rentals can expect to get gross yields of about 5.5-6.5%.
For HMOs, which require more management but cater to multiple tenants, can have higher yields, often reaching 8-10% gross, as a result of the higher rental income potential per .
The potential for capital growth is also said to be significant, due to urban regeneration projects and the city’s expanding economy.
These make Sheffield a promising location people looking to employ both buy to let and HMO strategies, the company says.
The city was recently named the as the UK’s top foodie cities by , which curated a ranking using Google reviews, Guide ratings, social data and sentiment of cities outside .
Sheffield . It has four restaurants in the Michelin Guide, 71 food markets, 99 food festivals and a boasted a “foodie population score’ of 54”.
the city was also named one of Europe’s best city breaks in 2023 by TimeOut.