Table of Contents
Properties Available in Sheffield
- Sheffield
Deposit
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Yield
Property Price
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- Sheffield
Deposit
.
Yield
Property Price
.
Overview of Sheffield's Property Market Growth in Recent Years
Sheffield has quietly transformed into one of the UK’s most promising property markets over the past few years. It is not just talk either. There is real growth happening here. Prices have steadily climbed.
This is making it a sweet spot for investors who want both short-term rental income and long-term capital growth. What has been impressive is that Sheffield offers better affordability.
That too compared to major cities like Manchester or Leeds. Yet it is experiencing similar levels of excess growth. And this is not a bubble. This is sustained growth driven by many factors.
This includes a strong local economy with a growing population. It also involves a rental market that shows no sign of cooling off. Those of you who’ve seen the city evolve know that Sheffield’s property market is still very much on the rise.
Sheffield Property Prices
Sheffield’s property market has seen some solid growth recently. This makes it an attractive option for property investors. The average property price paid in Sheffield as of March 2023 was £249,471.
There is a £21,430 increase in property prices between March 2022 and March 2023. This means a rise of 9.4%. This kind of appreciation suggests that Sheffield is more than holding its own in the UK housing market. It is continuing to offer both affordability and growth potential.
| YEAR | AVERAGE PROPERTY PRICE (in Sheffield) | PRICE GROWTH |
|---|---|---|
| 2014 | 156K | - |
| 2015 | 167K | 6.7% |
| 2016 | 171K | 2.6% |
| 2017 | 178K | 4.0% |
| 2018 | 189K | 6.2% |
| 2019 | 197K | 4.4% |
| 2020 | 201K | 2.2% |
| 2021 | 222K | 10.0% |
| 2022 | 228K | 2.9% |
| 2023 | 249K | 9.4% |
Source: https://www.varbes.com/housing-market/sheffield-housing-market
Let us take a step back. Now looking at the longer-term trends then property prices in Sheffield have been growing since March 2014. Steady growth like this is great for investors.
Especially if you are looking to build portfolios with long-term capital appreciation. If Sheffield region continues to rise at this same rate then you will notice an average property price of £273,980 by 2025. And this is an appealing prospect for those considering buy-to-let in the city.
Comparison of Sheffield to other UK cities
When comparing Sheffield to other major UK cities then it is clear that Sheffield’s property market stands out in terms of price appreciation.
According to the most recent data property prices in Sheffield rose by 9.4% in the year ending March 2023. That is higher than the national average growth of 7.1%. And significantly outpaces London’s 4.5% growth.
What makes this even more impressive is Sheffield’s affordability. The average property price in Sheffield is £249,471, which is substantially lower than Manchester’s £300,000 or Birmingham’s £275,000, yet Sheffield has seen faster price growth.
For those who are looking to invest in Sheffield properties, this combination of affordability and appreciation is really attractive. It means there’s still room for growth, making Sheffield an excellent option for building a property portfolio, especially for first-time property investors.
In fact, if you’re looking into buy-to-let in Sheffield, the rising property prices are a great sign for future capital appreciation. And with the city’s strong rental demand, especially near its universities and growing economic hubs, the potential for strong rental yields in Sheffield only adds to the appeal.
Compared to cities like London, where property prices are much higher but growth is slower, Sheffield offers a more balanced opportunity for both new and experienced investors.
Plus, for those who are focused on long-term investments, Sheffield investment properties offer the kind of steady growth that can secure a strong foothold in the market without the high upfront costs of other cities.
Here, a simplified version of the stats of various location:
| CITY | AVERAGE PROPERTY PRICE | ANNUAL GROWTH RATE |
|---|---|---|
| Sheffield | £249,471 | 9.4% |
| England | £377,216 | 7.1% |
| London | £500,000+ | 4.5% |
| Manchester | £300,000 | 8.0% |
| Birmingham | £275,000 | 7.5% |
Key factors driving Property Demand
There are several key reasons driving property demand in Sheffield, making it a top choice for property investors:
Thriving Job Market
Sheffield has seen significant growth in its job market, particularly in advanced manufacturing, healthcare, and the tech sector. The Advanced Manufacturing Research Centre (AMRC) has put Sheffield on the map as a hub for cutting-edge innovation, attracting talent from all over the country.
This influx of skilled workers creates a growing demand for housing, especially in areas close to employment hubs, which is a huge advantage for anyone investing in Sheffield properties.
Note:
As per the analysis of the accountancy and business advisory firm BDO, 19 Sheffield companies that have ranked among the top 150 companies in Yorkshire. These companies generate combined revenues of £6bn. And they employ almost 25,000 workers.
| Other Business Type | Percentage of Total Businesses |
|---|---|
| Micro Businesses | 86.7% |
| Small Businesses | 11.0% |
| Medium Businesses | 1.8% |
| Large Businesses | 0.4% |
| Total Businesses in Sheffield | 16,920 |
Source: Total population.co.uk
Strong Rental Yields
When it comes to property investment then understanding rental yields is crucial. Especially in a city like Sheffield where the market is thriving. Currently the average rental yield in Sheffield sits at an impressive 6.4%.
In some hotspots yields can climb even higher. It can reach up to 7.2%. This is not just a number. It is a testament to the demand for rental properties in this vibrant city.
City Centre Yields
The city centre stands out for offering some of the highest rental yields. Particul