A mortgage brokerage is recommending one particular city for landlords seeking to invest in 2025.
Joseph Lane, founder and director of Mortgage Lane, says Sheffield ticks the right boxes for buy-to-let investors.
He says: “Buyers should be searching specifically in areas close to the city centre and within the vicinity of the university campuses” and he offers four specific pieces of advice.
Type of Property: For standard rentals, two-bedroom apartments are popular among young professionals and small families, typically priced around £180,000. For HMOs, larger four to five-bedroom houses are ideal, catering to students and young professionals, with prices averaging £240,000.
Local Demand: The demand in Sheffield is robust, stemming from a large student body across its two major universities and the influx of young professionals in healthcare, education, and across the digital industries.
Yield: Landlords focusing on standard rentals can expect gross yields of about 5.5% to 6.5%. For HMOs, which require more management but cater to multiple tenants, yields can be higher, often reaching 8% to 10% gross, reflecting the higher rental income potential per property.
Investment Viability: Lane adds: “The city of Sheffield offers excellent investment opportunities due to its affordable entry prices and strong rental demand. The city is particularly attractive for HMO investments, where higher yields can be achieved due to the constant influx of students and young professionals. The potential for capital growth is also significant, driven by urban regeneration projects and an expanding economy, making Sheffield a promising location for both traditional Buy to Let and HMO strategies.”
