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Sheffield Housing Market Overview for 2024
Current Average House Price: £223,000 (August 2024)
In August 2024, the average cost of a house in Sheffield was £223,000. This demonstrates how well the housing market is performing. That represents a significant shift from even a few years prior when the Northern Powerhouse project was still driving the city’s growth.
Sheffield’s housing market has always been a bit of a late bloomer compared to cities like Manchester and Leeds, but it is catching up quickly now. When compared to some of the more costly southern cities, such as London or the South East, where prices can be eye-watering, this average price offers a fair entrance point for property investors.
Actually, Sheffield’s lower average price combined with high rental yields has attracted buy-to-let investors seeking long-term gains. Sheffield should most certainly be on your mind whether you intend to create a portfolio.
Yearly Change In House Prices
Now, here’s where it gets interesting. House prices in Sheffield have risen by about 5.2% year-on-year, which is modest growth compared to some cities but signals strong, steady growth over time. You know, it’s the type of growth that doesn’t set off alarms but still gives investors the confidence that their capital will appreciate over the long haul.
Sources: https://cy.ons.gov.uk/visualisations/hou singpriceslocal/E08000019/
The key here is consistency—it’s much more sustainable than the rapid spikes you might see in places like London. The gradual increase also means we’re not seeing dramatic inflation in the market, which is excellent for first-time investors trying to get a foot on the ladder.
Plus, that annual growth rate is more in line with what you’d expect from a stable market, especially with the Bank of England’s base rate hikes keeping things in check. It’s a good time to buy because prices are rising, but not skyrocketing.
Comparison With National And Regional Trends
There is a clear difference between the Sheffield and the country markets. Sheffield’s price tag of £223,000 makes it a more accessible option for investors looking to capitalise on a booming city, while the national average is over £290,000.
Plus, within the South Yorkshire region, Sheffield is definitely leading the charge in terms of property price growth. While areas in the South East continue to see stagnation or even minor declines, Sheffield and other regional cities in the North continue to thrive, thanks to infrastructure investment, job creation, and a rising population.
Compared to neighbouring regions like the East Midlands or West Midlands, Sheffield offers a unique balance of affordability and potential. It’s still a city where first-time investors and seasoned investors alike can find good value, particularly in areas like Kelham Island or the city centre, where property developments are booming.
First-Time Buyers: Average Price Paid
First-time buyers in Sheffield have had a pretty good run in recent years, and in 2024, they’re paying around £194,000 on average. That’s still relatively affordable compared to cities down south, where first-time buyers are often priced out of the market.
Sources: https://cy.ons.gov.uk/visualisations/hou singpriceslocal/E08000019/
The great thing about Sheffield is that it offers a lot of variety in property types, from modern city centre flats to more spacious suburban homes, making it easier for first-time investors to find something within their budget.
For those looking to make their first investment, this price point is a fantastic entry into a market that’s both growing and relatively low-risk. Sheffield is particularly attractive because of its strong rental market—meaning you can rent out properties easily and cover mortgage payments, even with higher borrowing costs.
The affordability of properties here is also why we’re seeing more young professionals and students choose Sheffield as their home base, adding to the demand for housing.
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Key Factors Driving House Prices
Economic Growth: Sheffield Is The Second Fastest-Growing City Economy
Sheffield’s economy has been gradually rising, and it is now ranked as the second fastest-growing city economy in the United Kingdom, trailing only Manchester.
According to the Centre for Cities, Sheffield’s Gross Value Added (GVA) rose by 6.1% in 2023, which significantly contributed to driving higher housing demand. With the city’s job market expanding—especially in sectors like tech, manufacturing, and education—there’s a clear link between economic performance and property price rises.
Sheffield aims to create over 7,000 new jobs and boost economic activity by £3.7 billion by 2030. This further reinforces the city’s long-term potential for property value appreciation.
This type of growth has already pushed house prices up, with demand coming from both locals and people moving into the city for work. As more companies relocate here, more individuals will need somewhere to live, so we expect a continuous rise in housing prices.
Population Growth And The Impact On Housing Demand
According to the ONS, Sheffield’s population has been steadily increasing, and it’s around 590,000 people.
The city’s population grew by roughly 0.9% in the last year, and what’s driving this is a mix of job opportunities and students staying on after graduating. We’re seeing more young professionals and students moving here, which has created a strong demand for housing. Local estate agents in Sheffield are seeing increased demand as more buyers look to invest in the city’s thriving property market.
Investors especially find this population increase to be important. More people means more demand for housing since it also implies more need for it. Sheffield’s population is predicted to rise by another 15,000 over the next five years if present patterns hold true, therefore maintaining the competitiveness and activity of the property market.
The Role Of Sheffield’s ‘Green City’ Reputation In Property Appeal
Sheffield’s reputation as the UK’s ‘greenest city’ isn’t just a title—it’s a selling point. With over 61% of the city classified as green space, it’s no wonder people are drawn here.
The abundance of parks, like Endcliffe Park and the nearby Peak District, make Sheffield one of the most desirable cities in terms of quality of life. In fact, Sheffield ranks in the top five UK cities for access to green spaces, according to a 2023 report by the Royal Society for Public Health (RSPH).
For individuals who make investments, this environmental appeal is very remarkable. Near green areas, students and young professionals are drawn to homes since they are recognised to have more value and sell faster. If you wish to buy in Sheffield, you could be smart to keep an eye on houses around these regions.
Rising Rental Demand From Diverse Demographic Groups
Sheffield’s rental market has always been solid, but today demand is driven not only by students. The average rent in Sheffield has risen by 9% over the past year; today it is about £858 per month.The Sheffield rental market is booming, driven by a surge in demand from students and young professionals seeking affordable housing. The truth is, though, demand has grown generally rather than only the cost of rent rising.
Sources: https://cy.ons.gov.uk/visualisations/hou singpriceslocal/E08000019/
Particularly young professionals and students account for roughly 45% of the present rental market and are a growing population. More people are choosing to rent as Sheffield’s job market grows and affordability compared to other places attracts draw-in for buy-to-let investors.
Featured Properties: High-Yield Opportunities in Key Sheffield Locations
But, before we discuss further, here are a few newly built properties we highly recommend checking out if you’re serious about making a smart Sheffield property investment:
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Property Price Trends by Type
Detached, Semi-Detached, Terraced, And Flats: How Prices Differ
Depending on the type of house in Sheffield, the prices are very different. The average price of detached properties is around £379,000. Semi-detached homes are around £243,000. And the average price of a terraced house is even cheaper at £196,000.
Sources: https://cy.ons.gov.uk/visualisations/hou singpriceslocal/E08000019/
This variation makes it clear that different property types appeal to different segments of investors and renters. For investors, this means you’ve got options depending on your strategy. Detached houses might offer great long-term capital appreciation, but if you’re after rental yields, terraced houses and flats in central areas could deliver better immediate returns.
Price Variation Across Neighbourhoods
Sheffield is a city of contrasts when it comes to neighbourhood prices. Areas like Fulwood and Ranmoor command some of the highest property prices, averaging £450,000, thanks to their green spaces and top-rated schools.
Meanwhile, more affordable areas like Sharrow and Hillsborough see average prices closer to £190,000. Finally, there’s Kelham Island, which is one of the best places in Sheffield for young workers. Over the last three years, home prices have gone up 15%, and the average price is now £250,000.
Investors need to understand how these neighbourhoods work in order to make smart decisions. Not just the average price in the city, but also finding the right place that has the most room to grow. Kelham Island, for example, was once a more industrial zone, but now it’s a hotspot. Spotting these kinds of opportunities before prices really take off can make a big difference.
Value Per Square Metre: Insights Into Affordability
Compared to other major cities in the UK, Sheffield still has very low property prices per square metre. The average price per square metre in Sheffield is about £2,100. This is lower than the average prices in Manchester and London, which are £3,500 and £6,500, respectively. This affordability gives Sheffield a unique edge, especially for investors looking to maximise their buying power.
This lower cost per square metre doesn’t just mean you’re getting more space for your money—it also means that potential capital appreciation is on the horizon as demand continues to grow. For buy-to-let investors, this translates to better yields, especially when combining lower purchase prices with rising rental demand.
Sheffield Compared To Neighbouring Cities In Terms Of Price Growth
Sheffield’s house price growth has been steady, with an increase of 5.2% year-on-year. Leeds, on the other hand, saw a bigger increase of about 6.7%, and Manchester is still in first place with 7.3%. The number of properties sold in Sheffield has been steadily rising, reflecting the growing interest from both investors and first-time buyers. It takes a little longer for Sheffield to grow, but this is actually a good thing for long-term investors who want stability over volatility.
The city is still more affordable than its neighbours, but with the Northern Powerhouse project and ongoing investment in infrastructure, Sheffield’s prices are expected to continue rising. For investors who want to get in while prices are still reasonable, Sheffield offers a window of investment opportunities that might not last forever.
Forecast for Sheffield’s Housing Market in 2025
Predictions For House Price Growth
From what market experts can tell, Sheffield home prices will keep going up regularly until 2025 when they will have gone up by about 4 to 6 percent. In places where things change a lot, this might not seem like much. But that’s the great thing about Sheffield: it does not change.
It’s not as risky to jump from high places as it is in London or the South East. Sheffield, on the other hand, has steady growth year after year. This makes it a great place for long-term investors who want to slowly but surely get rich.
Part of the reason for this stability is Sheffield’s diverse economy and population growth, as well as its strategic location in the North of England. We expect that house prices will keep going up, but not so fast that new investors can’t afford to buy. This will keep demand high and ensure long-term capital gain.
National Market Influences On Sheffield’s Housing Sector
The housing market in Sheffield is not in a bubble, so we need to look at things at the national level that might have an effect on it in 2025. Interest rates are the most important one right now.
The Bank of England’s base rate has been climbing, and if mortgage rates continue to rise, it could slow the housing market across the UK, Sheffield included. But the good news is that Sheffield, with its lower-than-average house prices, tends to be more resilient in the face of national economic fluctuations.
We’ve also got the Northern Powerhouse project still rolling out, which is a big deal. Government investments in infrastructure, transport, and job creation in the North are keeping Sheffield’s market in good health, even as other parts of the UK might see a cooling off.
Furthermore, although house prices are declining nationally, they often remain the same or somewhat decrease in local areas such as Sheffield. This is so because companies and professionals relocating from more costly regions are starting to show more desire to reside there.
Expected Trends In Supply And Demand For The Coming Year
Sheffield’s housing demand is expected to be strong in 2025, while the quantity of available homes is probably going to continue to be limited. New house construction has not kept pace with demand over the past few years; so, until we see a spike in new projects, this trend is probably going to continue.
This is particularly true in central areas like Kelham Island and the city centre, where young professionals and students are vying for rental properties and starter homes.
On the supply side, it’s clear that developers are working to catch up, but it takes time. New builds tend to focus on apartments and mixed-use developments, which are great for investors looking for rental yields.
However, family homes in more suburban areas will likely remain in short supply, which could push prices even higher. So, we’re forecasting strong competition in the buying market, which will keep prices on the rise.
The Impact Of Business And Economic Growth On Property Prices
Sheffield’s economic growth has been a major driver of rising house prices, and this is unlikely to change in 2025. As the city brings in more companies in the creative, manufacturing and tech sectors, the need for homes will only increase. The city’s universities are also a key player here—graduates are staying in Sheffield to work, and this is adding to the demand for homes.
The big thing to watch out for is how major projects like the expansion of the Advanced Manufacturing Park (AMP) continue to bring high-skill jobs to the area. More people will choose to live in towns when there are more jobs. As the Northern Powerhouse project helps Sheffield’s economy grow, home prices are likely to rise as well.
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The Best Places for Property Investment in Sheffield 2025
Kelham Island
Kelham Island is now the place where young workers and artists want to live. This area has a lot of cool bars, clubs, and small shops. It’s trendy and lively. Over the past ten years, this area, which used to be a post-industrial area, has changed totally, and home prices have been steadily going up. We think this trend will continue into 2025, especially for rental flats and houses.
For investors, Kelham Island is a goldmine. With average prices still relatively affordable compared to other major cities, rental demand is strong, and yields are excellent. The area’s proximity to the city centre and its thriving cultural scene make it one of the best places to buy in Sheffield.
- Average Property Price: Approximately £194690
- Average Rental Yield: 7.7%
Sharrow
Sharrow is another area to keep an eye on in 2025. It’s an affordable neighbourhood that’s been quietly developing over the past few years. Located close to the city centre and within walking distance of Sheffield’s universities, Sharrow is popular with both students and young professionals.
The average property price here is lower than in other parts of Sheffield, but that’s exactly what makes it so appealing to investors.
What we like about Sharrow is its potential for growth. As nearby areas like Ecclesall Road continue to become pricier, more people are moving to Sharrow, and we’re seeing early signs of gentrification. For property investors, getting in now could mean strong capital appreciation in the coming years.
- Average Property Price: Approximately £265,313
- Average Rental Yield: 6-7%
Fulwood
Fulwood is the place to be if you want to make a more traditional purchase. This leafy suburb has great schools, lots of green space, and big independent homes, making it one of the best places in Sheffield for long-term tenants. In 2025, Fulwood’s property prices are expected to rise as demand for family homes continues to outstrip supply.
While the initial cost of buying in Fulwood is higher than in other parts of Sheffield, the long-term returns are solid. Family homes in good school catchment areas always hold their value well, and with Sheffield’s population growing, we expect demand for these types of properties to remain strong.
- Average Property Price: Approximately £355,000
- Average Rental Yield: 5-6%
Hillsborough
Hillsborough is a neighbourhood that often flies under the radar, but it’s one of the best spots in Sheffield for strong rental yields. It’s affordable, well-connected by public transport (thanks to the tram system), and popular with students, families, and young professionals alike. The area has a good mix of terraced houses and flats, making it a versatile option for investors looking for different types of rental properties.
In 2025, we expect Hillsborough to remain a stable, reliable choice for buy-to-let investors. With rental demand steady and property prices still relatively low, it’s an area that offers great value for money and strong potential for steady rental income.
- Average Property Price: Approximately £233,874
- Average Rental Yield: 4.6%
Investor Strategies for 2025
Timing The Market: Should You Invest Now Or Wait?
If you’re thinking about investing in Sheffield’s property market in 2025, the timing question is key. Sheffield has been experiencing steady growth, with house prices increasing by around 5.2% year-on-year.
So, if you’re looking to invest, there’s an argument for jumping in now rather than waiting. With demand for housing on the rise and supply still limited, we’re expecting prices to keep climbing, especially in high-demand areas like Kelham Island and Hillsborough.
One thing to think about is that mortgage rates have gone up over the past year and are now around 5%. That might make it more expensive to borrow money, but waiting might only lead to higher home prices in the long run.
If your goal is long-term capital appreciation or securing strong rental yields, it might be better to lock in an investment now, rather than waiting and risking further price increases. In a market like Sheffield, where the growth is steady but not volatile, “now” often ends up being the best time to invest.
Maximising Rental Yields And Returns
It looks like 2025 will be a great year for Sheffield real estate investors to get the best returns, especially in the buy-to-let market. The need for rentals is high because of students, and young workers. During the last year, the average rent in Sheffield has gone up by 4.8% and is now around £812 per month. That’s good news for investors looking to generate passive income.
If you’re targeting higher yields, properties in up-and-coming areas like Sharrow and Hillsborough offer strong rental potential without the premium price tags of more central locations. On the other hand, if you’re looking at long-term growth, areas like Fulwood—where family homes are in high demand—could offer both capital appreciation and steady rental income.
The key strategy here is to balance your portfolio: invest in properties that not only offer good rental returns but are also positioned for price growth over the next five to ten years.
How Long Do Properties Take To Rent Or Sell In Sheffield?
For investors, it’s important to know how long properties typically stay on the market—whether you’re planning to rent them out or sell later. On average, properties in Sheffield take about 45 days to sell, but for rental properties, it’s much quicker. In high-demand areas, well-priced rental properties can get snapped up in as little as a week.
The need for rental homes is likely to stay high in 2025, especially in places close to universities and the city centre. Because so many students and young workers move to Kelham Island, flats and townhouses are usually rented out very quickly.
Influence of Surrounding Areas on Sheffield’s Market
Housing Trends In Neighbouring Regions And Their Effects On Sheffield
Sheffield’s property market doesn’t operate in isolation. As a key south Yorkshire city, Sheffield offers unique investment opportunities that attract both local and out-of-region buyers. It’s heavily influenced by what’s happening in nearby cities like Leeds, Manchester, and even places like Barnsley and Doncaster.
Leeds, for instance, saw a sharp 6.7% rise in house prices last year, while Manchester saw even higher growth at around 7.3%. As prices in these cities rise, investors who are priced out of those markets are turning their attention to more affordable alternatives like Sheffield.
More people are becoming interested in Sheffield because of this demand spread. People who work in Leeds or Manchester but want to buy or rent in Sheffield because the prices are more fair have already shown more interest. It looks like this trend will keep going, which will keep Sheffield’s real estate market competitive and help prices rise even more.
How Sheffield’s Growth Compares With Nearby Cities
When comparing Sheffield’s growth to nearby cities like Leeds and Manchester, Sheffield stands out for its steady, reliable increases. In Leeds and Manchester, prices have gone up quickly, but in Sheffield, prices have been going up at a slower but more stable rate—around 4-6% per year.
Still, the average home price in Sheffield is around £223,000, which is a lot less than the over £290,000 prices in Leeds and Manchester. For investors, Sheffield’s slower rise is a good sign that the market is stable. You can be sure of more stable results and there is less chance of a bubble.
Plus, Sheffield is a better place to build a portfolio than more expensive towns because it has lower entry prices. As part of the Northern Powerhouse initiative, Sheffield continues to get money to improve its infrastructure and create jobs, which will help it grow in the long run.
FAQs: House Price Forecast in Sheffield 2025
The need for housing in Sheffield is being driven by a few main causes that have been building for a while now. First, the business in Sheffield is doing very well. Businesses and people looking for work are drawn to the city because its economy is growing faster than any other in the UK.
More people are looking for homes to buy or rent because of all the new jobs, especially in tech and industry. The two main universities in Sheffield also play a big role in this area. A lot of students come to the city every year, and many of them stay to work after they graduate, which increases demand even more.
Plus, Sheffield is still pretty cheap compared to other places in northern England. This is likely to interest people who are getting their first home, young workers, and investors. City parks are important, so don’t forget about them. People who want to live in the city but still be close to nature will like the fact that more than 60% of Sheffield is green.
The fact that house prices are still much lower than the national average is one of the things that makes Sheffield such a good market. There were about 223,000 homes for sale in Sheffield in August 2024. English and Welsh homes cost about £290,000 on average.
That’s quite a gap, especially when you consider the potential for future growth in Sheffield. The city offers good value without the inflated prices you see in cities like London or even Manchester.
That said, Sheffield’s house prices have been on the rise. Over the past year, they’ve increased by about 5.2%. So while it’s still a good deal compared to the rest of the country, those prices are creeping up, which might make it a smart time to invest before they climb even further.
Price increases for single-family and semi-detached houses in Sheffield are a good sign. These homes are very popular, especially in family-friendly places like Fulwood and Dore.
Long-term tenants want space, good schools, and access to parks, and that’s exactly what these areas offer. Detached houses have hit an average price of around £425,000 in some of Sheffield’s most desirable suburbs, and they’re only getting more popular.
But let’s not overlook flats and terraced houses. In places like Kelham Island and Walkley, prices for these properties have been rising steadily too, thanks to demand from young professionals. Investors are paying attention here because the rental yields are solid, especially in areas where new developments are popping up.
It’s likely. Sheffield rental prices have been slowly going up, and we think that will keep happening until 2025. Rental prices have gone up by about 4.8% in the past year because there aren’t many houses available and people want to live there.
There is no sign that demand will go down any time soon since more people are coming to Sheffield to find work and the number of students is still high. The rental market is very strong in places like the city centre, Kelham Island, and neighbourhoods with lots of students close to colleges.
If you’re a landlord or investor, this is good news—rising rents mean higher yields. And with the local economy continuing to grow, along with infrastructure improvements, the trend of increasing rental prices is likely to hold up through 2025 and beyond.
Area Guide
Danny Bell
I’m Danny, one of the consultants here at Flambard. Having grown up in and around various sports teams and a family real estate business, my sociable, completive nature has excelled me in such a challenging yet rewarding job.
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