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As real estate agents working in Leeds for years, we have seen the city become a popular location for short-term rentals. Leeds is unique in that it has a strong economy, a booming tourism industry and high demand for flexible, high-quality housing.
Whether you’re looking at holiday apartments in Leeds City Centre or serviced apartments near key attractions like Roundhay Park or the Royal Armouries Museum, the market here is booming.
We’ve worked with many investors who’ve achieved rental yields of up to 8% in areas like Chapel Allerton and Holbeck Urban Village, and we can confidently say Leeds is a goldmine for short-term rental investment.
Why is Leeds a Top Location for Short-Term Lets?
Overview of Leeds’ Economy and Tourism Industry
Leeds is one of the most exciting property markets in the UK, with an economy contributing over £69 billion annually. As property specialists, we’re constantly impressed by how well Leeds balances business and leisure.
Leeds offers everything investors could want in a short-term rental market. From its vibrant community to its rich history and stunning Victorian architecture. Iconic landmarks like Kirkstall Abbey and the bustling Briggate shopping street to draw tourists year-round. This creates consistent demand for holiday accommodation.
The city’s strong cultural legacy draws tourists, who visit sites like Victoria Leeds, Temple Newsam, and Elland Road Stadium. At the same time, Leeds’ thriving financial industry attracts business travellers, which makes serviced flats with free WiFi and parking very attractive. For investors, this dual demand means year-round occupancy potential.
Leeds as a Hub for Finance, Technology, and Education
We’ve often advised clients to consider Leeds for its unmatched economic strength. It’s the financial capital of the North, with a thriving legal sector and growing tech industry generating £3 billion annually.
In addition, the three main universities in the city—including the University of Leeds—draw an ongoing flow of students, visiting scholars, and foreign delegations. From our experience, businesses providing corporate accommodation close to Leeds City Centre or Headingley do remarkably well because they appeal to both academics and professionals looking for comfort and flexibility.
Key Events and Attractions Drawing Tourists and Business Travellers
Leeds’s potential to attract a varied range of guests is one of the main reasons why you should invest here. While football supporters swarm Elland Road, the First Direct Arena hosts top-notch concerts and events.
The city is a cultural centre thanks in large part to landmarks including Victoria Gate, Trinity Leeds, and Leeds Art Gallery. There is demand for every kind of lodging, from corporate travellers needing short-term rentals near major events to holiday visitors looking for luxury homes within walking distance of these attractions.
Tourists and leisure travellers flock to Leeds for its walking trails, live music at the O2 Academy, and iconic events like the Leeds Festival. Short-term rentals near nightlife hubs, clubs, and shopping destinations are particularly appealing. Here visitors and tenants can enjoy drinks and live music.
Short-term rentals with amenities like fully equipped kitchens, wi fi, smart tv, gym, safe parking, and close proximity to public transportation have greater occupancy rates, we have discovered. Families and leisure visitors often like properties close to sites like Roundhay Park or the Grand Theatre.
Property Market Trends in Leeds Favouring Short-Term Let
Leeds’s property market has evolved over years from strength to strength. Apart from its cost relative to London or Manchester, the city appeals to investors for its amazing growth potential. As more people choose the comfort and adaptability holiday rentals and serviced apartments provide, demand for them has soared.
Short-term accommodation in places like Leeds City Centre sometimes pays more nightly than standard long-term rentals, which increases profits. We’ve worked with investors who’ve seen their properties appreciate significantly in areas like Chapel Allerton and Holbeck Urban Village, thanks to regeneration projects and strong infrastructure.
If you’re looking for a city with rising demand and strong returns, Leeds is the right place to invest.
Growing Demand for Short-Term Accommodation in Leeds
Leeds is the heart of West Yorkshire, offering tourists a perfect base to explore England. The city blends modern conveniences with historical charm. Making it an attractive destination for a wide variety of travellers. Whether it’s a quick trip or a gathering with friends Leeds continues to be a top choice for holiday accommodation.
Business Travellers Fueling Demand
Thanks to its thriving financial, technology and legal sectors, Leeds has firmly established itself as a hub for business travellers. Usually preferring serviced apartments in Leeds City Centre or close to business parks, corporate visitors swarm Leeds for conferences, meetings, and long-term projects.
From our experience, corporate housing with amenities like free WiFi, safe parking, and close proximity to public transportation regularly shows high occupancy rates.
Many of our clients have seen short-term lets in central Leeds enjoy year-round demand from professionals, particularly around major corporate events at the First Direct Arena or the city’s universities.
Popularity Among Tourists Exploring Yorkshire and Beyond
Tourism in Leeds is thriving, and that’s fantastic news for investors. From historic sites like Temple Newsam to family-friendly green spaces like Roundhay Park, Leeds has something for everyone. Holidaymakers also use Leeds as a base to explore West Yorkshire and the Yorkshire Dales.
Visitors often look for fully equipped holiday apartments that offer the comforts of home—something hotels simply can’t match. Properties within walking distance of attractions like the Royal Armouries Museum, Elland Road Stadium, or Leeds Art Gallery tend to command premium rates during peak seasons for exhibitions.
Rising Preference for Short-Term Rentals Over Hotels
Unquestionably, short-term rentals—especially for families, groups, and long-stay business travelers—have taken front stage. Longer stays would find serviced apartments perfect since they offer flexibility, privacy, and conveniences including fully fitted kitchens unlike hotels.
The little details included with short-term stays—gardens, terraces, access to local businesses and cafés—also appeal to guests. This change presents a fantastic chance for investors to enter a burgeoning sector with distinctive, well-located Leeds accommodation.
Leeds offers a vibrant life, seamlessly blending history, culture, and modern convenience. With an extensive bus route network, plenty of night life options, and attractions like Kirkstall Abbey and Briggate shopping street, the city appeals to plenty business and leisure travellers.
Some Exclusive Short term Rental Apartments in Leeds For Your Investment
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Key Neighbourhoods in Leeds Ideal for Short-Term Lets
Neighborhoods like Morley, West Yorkshire, and Leeds city centre are investor favorites. Their proximity to cultural attractions, scenic walking trails, and vibrant nightlife ensures high demand from both tourists and professionals. Properties near boutiques, restaurants, and shopping destinations like Briggate shopping street are particularly profitable.
Leeds City Centre
Leeds’s city centre, which is ideal for temporary rentals aimed at business and leisure guests, is the throbbing core of the city. Its close proximity to Trinity Leeds, Victoria Gate, and main travel hubs guarantees a consistent flow of visitors.
Serviced apartments here typically achieve rental yields of 6%–7%, with average property prices around £250,000 for one-bedroom apartments. Many of our clients have seen incredible success with holiday rentals in this area, particularly those offering popular amenities like free WiFi and parking.
Headingley
Known for its vibrant student population and young professionals, Headingley is a hotspot for short-term lets. Properties close to Headingley Stadium attract cricket and rugby fans, while its lively bar and cafe scene draw tourists.
The average property price here is around £220,000, with rental yields averaging 5%–6%. We’ve found that fully furnished apartments with outdoor spaces or nearby public transport links perform exceptionally well in Headingley.
Chapel Allerton
It’s been called the “Notting Hill of Leeds,” and families, creative types, and workers all love living there. It’s popular with tourists looking for something different because it has small shops, pubs, and restaurants.
Average property prices in Chapel Allerton are around £270,000, with rental yields of 5.5%–6.5%. Holiday apartments here often see higher occupancy rates thanks to the neighbourhood’s charm and easy access to Leeds City Centre.
Horsforth and Otley
For investors seeking something quieter but still in demand, Horsforth and Otley offer excellent opportunities. These suburbs attract families and tourists drawn to their proximity to Leeds Bradford Airport and green spaces.
Properties in Horsforth average £300,000, while Otley offers slightly lower prices at £270,000, with rental yields ranging from 4.5%–5.5%. Serviced apartments or cottages with gardens and parking are particularly appealing in these areas.
Holbeck Urban Village
Holbeck Urban Village is one of Leeds’ most exciting up-and-coming areas. With its mix of industrial heritage and trendy new developments, it’s popular with young professionals and digital nomads. Located just outside the city centre, properties here are relatively affordable, averaging £230,000, with rental yields of 6%–7%.
Investors we’ve worked with have had great success in Holbeck, especially with luxury apartments that feature modern amenities and unique designs.
Major Revitalization Projects in Leeds and Why they Matter for Investors
With a number of big revitalisation projects aimed at improving the city’s infrastructure, economy, and appeal, Leeds is going through an amazing change. The main projects and the amounts of money they will cost to complete are listed below:
South Bank Regeneration
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Description:
One of Europe’s largest urban renewal projects, the South Bank regeneration is set to double the size of Leeds City Centre. This 253-hectare project will add 35,000 new jobs, new homes, and huge areas for shopping and fun. Improving travel is a big part of this project. The new HS2 station and improvements to the riverfront are two examples. -
Investment Cost:
Approximately £500 million. -
Why It Matters for Investors:
As redevelopment continues, property values in places like Holbeck Urban Village and the South Bank are expected to rise dramatically. Short-term rentals close to these developments could search for both professional and tourist demand rising.
Leeds Bradford Airport Expansion
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Description:
The 9,500 square metre, three-storey terminal the airport is building will help improve regional connectivity and handle growing passenger count. Enhanced transportation infrastructure and environmentally friendly amenities help to lower the carbon footprint of the airport. -
Investment Cost:
Over £100 million. -
Why It Matters for Investors:
This growth is likely to increase demand for short-term accommodation in locations such as Horsforth, Otley and the city center by boosting tourist and business travel.
Holbeck Urban Village Development
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Description:
As part of the South Bank regeneration, Holbeck Urban Village is being transformed into a vibrant mixed-use area. Originally a centre for industry, it now hosts tech companies, creative businesses, apartment buildings and hip cafés. The area's legacy is under preservation, with an eye on encouraging innovation. -
Investment Cost:
Included in the £500 million allocated for South Bank Regeneration. -
Why It Matters for Investors:
There are a lot of young people moving to Holbeck Urban Village, which is increasing the demand for serviced apartments and short-term rentals.
Leeds City Square Transformation
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Description:
The City Square regeneration project aims to create a more pedestrian-friendly environment by removing traffic and introducing green spaces, public art, and improved connectivity to nearby attractions like Trinity Leeds and Leeds Art Gallery. -
Investment Cost:
Approximately £75 million. -
Why It Matters for Investors:
The transformation will elevate Leeds City Centre's appeal for both tourists and business travellers, increasing the value and occupancy rates of short-term rentals in the area.
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Description:
The White Rose Shopping Centre is undergoing a major expansion with additional leisure facilities, a movie theatre and office buildings among other developments. To better access, a train station is also under construction. -
Investment Cost:
Over £50 million. -
Why It Matters for Investors:
Improved accessibility and enhanced amenities in the south of Leeds will drive demand for holiday rentals and serviced apartments in nearby residential areas.
Benefits of Investing in Short-Term Lets in Leeds
Higher Rental Yields in a Growing Market
Particularly for short-term rentals, Leeds regularly presents some of the best rental yields available in the UK. Compared to 4%–5% for long-term rentals, investors commonly obtain yields of 6%–7% or more with weekly rates ranging from £90–£150 for serviced flats in the city core.
Strong demand from both business and leisure travellers makes areas like Headingley and Holbeck Urban Village exceptionally profitable. From our experience, homes with well-liked conveniences like free WiFi, safe parking, and fully functional kitchens usually show higher occupancy rates and income than others.
Flexibility in Letting Options
The flexibility that short-term lets provide is among their best features. Unlike long-term rentals, you can change your price and availability to fit personal tastes or seasonal patterns.
For example, many of our clients move to corporate housing in quieter months after renting their homes to visitors during the summer boom. This double attraction lets you keep control over the use of your property while maximising income.