Buy-to-Let Mortgages in Leeds

Leeds is one of the fastest-growing property hotspots in the north of England, but is it the right location for your buy-to-let investment? Here you can find out what rental yields the city offers, how to get a buy-to-let mortgage there and more.

Is Leeds a good location to get a buy-to-let mortgage?

Average rental yields across the city are generally good, reaching 6.67% on average, according to data from Zoopla. There are also affordable house prices on offer, with the citywide average being £174,269, against a national average of £285,000.

While there are similarly strong rental yields available elsewhere in Yorkshire, a recent study suggests that Leeds has one of the fastest growing rental markets in the UK. Data from Simply Business indicates that the city’s rental market has seen annual growth of 8.02%, with Glasgow and Nottingham being the only places with higher percentages.

Other reasons to invest there

In addition to the competitive rental yields and property prices available, here are some of the other reasons to get a buy-to-let mortgage in Leeds:

• Positive economic outlook: The latest figures suggest the local economy in Leeds is worth around £64.6 billion, which compares favourably to similar sized UK cities.
• Growth forecast: Over the last 12 months, property prices in Leeds have risen by 9.37% and further growth is forecast, according to a study by Savills.
• A large student population: Leeds is home to some 60,000 students, many of whom have rental accommodation needs, not just while they are studying in the city, but also afterwards, with high numbers remaining there as graduates.
• Regeneration projects: Major investment schemes including The Majestic, Innovation Village and South Bank Leeds promise to bolster the city’s economy and housing stock over the coming years, creating new investment opportunities.

What size mortgage will you need?

Based on the average house price in Leeds (£174,269), the average buy-to-let mortgage deposit in Leeds is around £43,567 (25%) and a typical mortgage amount would be £130,701. The exact amount you will need to borrow will, of course, vary depending on the property price, which will vary depending on the usual factors, like postcode and size.

Best postcodes to invest in

The best rental yields Leeds has to offer can currently be found in the LS3 postcode (11.7%), which is the outskirts of the city centre leading to Burley and Woodhouse. Other postcodes with strong rental yields include the nearby LS4 (9.7%) and LS2 (8.5%).

The table below shows some of the most popular Leeds postcodes to get a buy-to-let mortgage in, based on the latest rental yields and average properties prices.

Source: These figures were sourced from PropertyData earlier this year

How to begin your mortgage application

Now that you have done some research into potential locations for your property investment, you can compare buy-to-let mortgage rates and deals for free on Teito. When you source a mortgage with us, you will also have the option of a consultation with one of our brokers.

We have whole-of-market brokers on our team who specialise in the Leeds buy-to-let market, and can access to exclusive deals. Choose your preferred option below to get started:

Compare buy-to-let mortgage rates in Leeds

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How Leeds compares to other Yorkshire areas

The table below shows how the rental yields and property prices in Leeds compare to other major towns and cities in Yorkshire, including Huddersfield and Bradford.

Leeds vs. Manchester

If you’re wondering whether Leeds or Manchester is the better location to get a buy-to-let mortgage in, you can gain insight into this by comparing the rental yields and average property prices available in both cities. In Manchester, the average rental yield is 6.5% and house prices were tracked at £230,967, according to the most recent Halifax Price Index.

This means that Leeds has more favourable rental yields (7.2%) but slightly more pricey properties, with average house prices currently at £241,000.

You can read more about Manchester buy-to-let mortgages in our standalone guide.

Is Leeds a good location to invest in student accommodation?

Leeds is popular among landlords in the market for properties to let out to students for several reasons. Among them is the fact rental income for landlords in the city’s student sector has seen substantial increases in recent years, with data from RWinvest suggesting average annual rental costs rose from £4,000 to almost £6,000 between 2011 to 2018.

The city is home to four universities and attracts 60,000 students per year. Popular property types there include HMOs and purpose-built student accommodation.

You can read more about getting a student buy-to-let mortgage in our standalone guide.

Why choose Teito for your buy-to-let mortgage needs?

Now that you have done some research into the Leeds market, you can compare buy-to-let rates for free and access advice from a broker who specialises in this area on Teito.

Here are just some of the reasons landlords choose to source their mortgage with us:

• You can access buy-to-let mortgage rates in seconds
• Our brokers can offer bespoke advice and exclusive deals
• We are 5-star rated on leading review websites
• You can secure an agreement in principle in minutes

Ready to compare rates and take advantage of a free, no-obligation chat with a mortgage broker who specialises in the Leeds buy-to-let market? Get started here.