The 10 Best Buy-To-Let Areas In Leeds

The 10 Best Buy-To-Let Areas In Leeds

Leeds and the surrounding regions, including Bradford and Selby, are home to approximately 29 different postcode areas, e.g. LS1, Ls2, LS3, and so on.

Every year, we access the latest property market data for each postcode to identify the 10 with the highest average rental yields. Here are the results for 2024:

Interestingly, there are no newcomers in this year’s results. It’s the same set of postcodes in the top 10 as last year, but the order has changed.

1. LS3 – City Centre Outskirts, leading to Burley & Woodhouse

LS3 is an area of Leeds to the immediate west of the city centre, the other side of the A58, a major route that runs to the north of the urban core. In between the centre and LS4’s Burley, and covering part of Woodhouse, this area offers the highest yields in the city – shooting to the top of the table this year thanks to an average rental yield of 10.9%.

Yields are high in LS3 because of its location. The city centre, university campuses, and hospital are all within easy reach.

Landlords can find several different types of accommodation in the area. Apartments and flats dominate the main Burley Road. However, to the north, there is more traditional accommodation, including Georgian and Victorian terraces.

Yields are also high because of its local amenities. While the city centre is close by, nearby Burley also has some excellent schools, access to Oakwell Hall and Country Park, and interesting historical sites, such as the Royal Armouries, all of which make it a desirable place to live.

Because of the proximity to central Leeds, detached properties are rare. Landlords target this area because of low unit costs and its appeal among people looking to live as close to their work as possible. The average household income is £31,720, significantly lower than the city centre, pushing down rental prices and overall housing costs.

2. LS4 – Burley, Kirkstall

Last year, LS4 was the top postcode in Leeds for a buy-to-let. It’s still exceptionally strong, with yields of 9.5%, but it’s been squeezed into second-place.

LS4 is roughly 2 miles northwest of Leeds city centre and covers the suburb of Burley – a residential area primarily known for its terraced houses, mix of local amenities, and green spaces, such as Burley Park.

Burley has historically been popular among students attending the nearby University of Leeds and Leeds Beckett University due to its proximity to several campuses. As such, there’s a large portion of student accommodation, which tends to achieve excellent rental yields and helps to explain LS4’s second-place position in our table.

Apart from students, Burley also attracts young professionals who work in Leeds. It’s close to the city centre, which is ideal for those wanting an easy commute, plus an exciting range of bars, cafes, and restaurants, making it a fun and desirable place to live.

Arguably, with a 30% increase in property prices over the past five years, LS4 offers the best balance between ongoing rental income and long-term capital appreciation for investors in Leeds.

3. LS2 – Blenheim, City Centre & Woodhouse

In third place, with an average yield of 9%LS2 is an area of Leeds that encompasses the northern part of the city centre and Woodhouse. It is particularly popular among landlords because it contains the University of Leeds and Leeds General Infirmary, two major sources of tenants.

The area is actually quite a strange shape, running in a semicircle around Leeds city centre, following the major circular roads. Excellent access to shopping, places of work, gyms, and road transport make this area highly desirable, pushing up rents.

The housing stock in the area is exceptionally varied. Close to the university, you’ll find an abundance of Victorian properties, most of which are either owned by the university or rented to students. Close by is Blenheim. Here, you’ll find Victorian streets and terraces, with some newer post-war terrace builds mixed in. The most attractive properties surround Blenheim Park, a small patch of greenery with views over the city.

The closer you get to the city centre, the more opportunities there are to purchase flats. The area around Lovell Park Road offers a mix of high-quality apartment blocks and old high-rise units.

4. LS9 – Burmantofts, Cross Green, East End Park, Gipton, Harehills, Mabgate, Halton Moor, Osmondthorpe and Richmond Hill

The LS9 area comprises Burmantofts, Cross Green, East End Park, Gipton, Harehills, Mabgate, Halton Moor, Osmondthorpe and Richmond Hill. Sitting to the east of the city centre, it is a large district, encompassing both urban and suburban landscapes.

LS9 has the lowest average property price of any postcode in the top 10, offering a truly cost-effective option for landlords – especially given the strong 8.5% yields.

The reason for LS9’s high yields mainly comes down to its excellent transport links and access to open spaces. This part of Leeds has multiple greens and parks, and it is also on the main intersection of the A64 from York, the A61 (M1), and the A58 that connects the west of the city.

Closer to the city centre in the East End Park area, you’ll find budget apartment accommodation, mostly built in the 1960s and 1970s. Moving further out to the Halton Moor area, there are traditional post-war semi-detached properties, with attractive front gardens. The Harehills area has classic terraced properties on gridiron streets. These tend to sell for bargain prices, helping landlords make excellent returns.

5. LS11 – Beeston, Holbeck, Hunslet

Moving up two places from last year, LS11 is one of the most dynamic areas for a buy-to-let investment in Leeds, with a current average rental yield of 7.1%. LS11 covers a large section south of Leeds city centre, encompassing Beeston, Holbeck, Hunslet, and more. It’s ideal for renters who work in the city but prefer more affordable accommodation.

The area’s popularity is driven by its improving transport links and ongoing regeneration projects, particularly in Holbeck. Once an industrial heartland, Holbeck is rapidly transforming into a thriving residential district, attracting young professionals looking for affordable housing in touching distance of Leeds’ bustling city centre.

Beeston, with its blend of terraced housing and newer developments, has long been an affordable option for both renters and buyers. The area has a community feel, with a range of schools, parks, and local shops, making it more attractive to families.

In terms of capital appreciation, LS11 has seen significant growth, with property prices increasing by 29% over the past five years. This makes it an excellent option for investors seeking both rental yield and long-term gains.

6. LS6 – Headingley and Hyde Park

LS6 mainly encompasses the Headingley and Hyde Park areas of town. Again, because this postcode covers a large area, property opportunities for buy-to-let investors are varied.

The Hyde Park area of town features rows of densely-packed terraces with access to the eponymous park and city centre. Further north in Headingley, things become distinctly more suburban with larger properties, front gardens, and detached homes.

Headingley has access to the city via Headingley Lane, which connects to Otley Road. It is also close to both the Burley Park and Headingley rail stations, great for commuters who need quick access to Leeds city centre or other northern cities.

The Hyde Park area of town is popular among workers and students. Headingley is more for middle-aged professionals, people in senior managerial or clerical positions, and their families.

Yields are high here mainly because of the growing economic vibrancy of Leeds’ urban core. Gentrification is in full swing.

7. LS1 – Hunslet, Stourton, Belle Isle

Leeds postcode LS1 encompasses most of the city centre and its historical areas. Yields are high, thanks to the area’s prime location. It is close to places of work, transport links, entertainment, and universities.

LS1 has a population of around 330,000 people with an average household income of £62,920. Just under 1 in 4 people who live in the area have higher or intermediate managerial jobs, professional occupations, or administrative roles. Around half have mid-level white collar or skilled manual labour roles, and 25 per cent are semi-skilled or unskilled, working in the lowest grade occupations, or unemployed. Because of this diversity, the area attracts a mixture of landlords, ranging from those looking for cheap flats to luxurious penthouses.

High yields are also being driven by the fact that LS1 is one of the trendiest places to live in Yorkshire. Leeds city centre offers a mixture of hip bars serving local ales, boutique stores, and quirky cafés. The Belgrave Music Hall and Canteen, Headrow House and The Tetley, a contemporary art gallery, are all within walking distance.

Most properties in Leeds city centre are apartments, flats, studios or maisonettes. While there are some terraced and semi-detached homes, they are rare. Because of a recent surge of building work, a large number of small dwellings are for sale in the area. Landlords typically purchase homes of multiple occupation (HMOs) and rent out units to tenants.

Despite heavy urbanisation, LS1 is close to several parks and gardens, including Merrion Street Gardens, St John’s Park, and Park Square. Benches, flowers, paths for dog walking and green picnic spaces are available.

8. LS10 – Leeds City Centre

Retaining its position from last year, LS10 continues to be a solid choice for buy-to-let investors, with an average rental yield of 6.7%. Covering the areas of Hunslet, Stourton, and Belle Isle, LS10 is located south of Leeds city centre.

One of the key reasons for LS10’s strong performance as a buy-to-let area is its affordability. Average property prices here are relatively low at £181,943, making it an attractive option for investors seeking lower entry points while still benefiting from decent yields. The area provides a variety of housing types, from traditional terraced houses and former council estates to more modern developments, appealing to a wide range of tenants.

Hunslet, the largest area within LS10, has a mix of residential and commercial properties. While once dominated by industrial sites, Hunslet has undergone significant redevelopment in recent years, with new housing and retail options springing up.

Belle Isle, on the other hand, is more residential, with a quieter, suburban feel. It’s particularly attractive to families and long-term renters, thanks to the presence of several schools, parks, and local amenities.

While LS10 may not have seen as rapid property price growth as some other Leeds postcodes, it has still experienced an 18% increase over the past five years. This steady appreciation, combined with solid yields and relatively low property prices, makes the area a dependable choice.

9. LS5 – Kirkstall, Burley

Holding steady in ninth place, LS5 is another attractive location for a buy-to-let, with an average rental yield of 5.6%.

The LS5 postcode mainly covers the areas of Kirkstall and parts of Burley, both of which are located northwest of the city centre. Known for their green spaces, lively communities, and historical heritage, these areas have become increasingly popular among renters.

Kirkstall, in particular, is renowned for its picturesque Abbey and riverside views, along with an influx of trendy cafes, bars and restaurants in recent years. The combination of nature and easy access to the city centre via road and rail makes it an excellent location for families, young professionals, and students alike.

Burley, parts of which overlap with LS4, is close to the campuses of both University of Leeds and Leeds Beckett University, making it a popular spot for student accommodation. As a result, there’s a high demand for shared houses and flats, which continue to deliver strong returns for landlords.

10. LS14 – Seacroft, Whinmoor, Swarcliffe

Rounding out the top 10 is LS14, holding its position from last year (just about).

Located to the northeast of Leeds city centre, Ls14 covers Seacroft, Whinmoor, and Swarcliffe.

Seacroft, the largest of the three areas, has seen considerable regeneration in recent years. Once known for its large council estates, it now offers a wider mix of housing, from older council properties to newer developments. Despite its reputation as a working-class area, Seacroft benefits from good transport links to the city centre and ample green spaces, such as the popular Seacroft Green Shopping Centre and Seacroft Hospital. These factors make it attractive to families and professionals looking for more affordable housing within easy reach of Leeds.

Whinmoor, situated further out, is quieter and more suburban, with a larger proportion of semi-detached and terraced homes. Its proximity to the A64 and M1 motorway means tenants can commute easily to both Leeds and surrounding towns, adding to the rental demand.

Swarcliffe, to the southeast of LS14, has similar characteristics to Seacroft and Whinmoor, offering mostly terraced and semi-detached houses at relatively low prices compared to the rest of Leeds.

Why is Leeds a good city for a buy-to-let?

Leeds has become one of the UK’s most popular cities among buy-to-let investors, and there are several reasons why.

First and foremost, the city is experiencing an epic transformation, which has seen it morph from an industrial, working-class northern town into a lively modern city.

For instance, the South Bank Leeds project will double the size of the urban centre and will be the largest change seen in the city for over a century. Likewise, the New Briggate High Street Heritage Action Zone is receiving central government funding to renew high street properties in the area, improving their facades and roofing.

If you’d like to learn more about the effect of urban regenation on a city’s property market, have a listen to our latest podcast:

Leeds is also home to a large student population. More than 200,000 people attend Leeds University and Leeds Metropolitan University, providing a large pool of loan-funded, guaranteed tenants for landlords. The city’s diverse economy also attracts young professionals looking for inexpensive properties to rent.

Leeds’ economic progress has been significant. The city council believes that the economy will grow by more than 21 per cent over the next ten years, with financial and business services accounting for more than 38 per cent of total output. Jobs are also booming, with 19,000 newly created in 2022 despite significant national and global economic headwinds.

Furthermore, transport links are being upgraded in ongoing efforts to deliver on “Northern Powerhouse” promises. In July 2022, then UK transport secretary, Grant Shapps, unveiled the £11.5 billion Transpennine Route Upgrades scheme, which will improve Leeds’ rail network, both east-west and north-south, facilitating better connections to the Midlands and London. Leeds is also a recipient of the Leeds Public Transport Investment Programme, a long-running programme that will see the introduction of bus priority corridors, improvements to the city centre road layout, new park-and-ride schemes, and improvements to bus stops and related services.

How does Leeds compare to Liverpool and Manchester as a buy-to-let area?

In terms of popularity for a buy-to-let, Leeds comes in behind both Liverpool and Manchester. But should it?

Average rental yields in Leeds are exceptional. For example, the top four postcodes in Leeds, LS3, LS4, Ls2, and LS9, outperform all but one postcode across both Liverpool and Manchester (the student-dominated M14 in Manchester).

This is an incredible result, and shows the power of the rental market in Leeds.

However, the average house price in Leeds is £270,700, according to data from Rightmove. In Manchester, it’s £263,569, while in Liverpool it’s just £204,602.

That makes Leeds a touch more expensive, on average. Therefore, depending on budget, an investor may wish to consider the lower prices available in Manchester or Liverpool.

Overall, all three are good options and you should do your research to figure out which suits you best. Fortunately, we can help with that, take a look at the following guides for more information:

• Buy-To-Let Manchester: The 10 Best Areas & More
• Where Are The Best Buy-To-Let Areas In Liverpool?

Summary

Leeds has tremendous potential for a buy-to-let investment. The city is brimming with students and young professionals, all seeking rented properties. And, compared to many other regional hubs, it is doing well economically, projected to grow significantly over the next decade by the council. If regeneration efforts are successful (and they have been so far), more people will move to the area, boosting rents, property prices and yields further.

If you want to be a part of that growth, why not speak to our team?

We can help you find a suitable buy-to-let property, matched perfectly to your budget and goals. Just fill in the form below to get started.

About This Data

The data in this article is an accurate representation of the Leeds property market as of October 2024. We’ll update this report next year, in 2025, with fresh data.