Buy-To-Let Sheffield: The 10 Best Areas & More

The 10 Best Areas For A Buy-To-Let In Sheffield

So where should you purchase a buy-to-let in Sheffield?

Using industry data on postcode performance, we’ve identified ten Sheffield property investment hotspots based on rental yield and property values.

Here’s how it works:

• There are 44 postcodes across the Sheffield area.
• For each postcode, we’ve pulled in the latest property market data, including average rental yields and changes in average sale prices over the last five years.
• First, we ordered postcodes from the highest-to-lowest average rental yield. The top postcode was given a score of 44, the second was given a score of 43, and so on.
• We then added a weighting by tripling the rental yield score to promote areas with profitable yields (key for buy-to-let investors).
• Next, we ordered postcodes from the highest-to-lowest change in average sales price. The top postcode was given a score of 44, the second was given a score of 43, and so on.
• The two scores were added together and the results were ordered from highest to lowest.

Without further ado, here are the top 10:

Let’s take a deeper look at some of the most promising areas on this list.

S5 – Park Springs, Fir Vale, Shiregreen, Ecclesfield

The S5 area offers plenty of affordable buy-to-let properties, mainly terraced houses and modern apartments. It also has good transport links and bus routes directly to the city centre.

Covering a large section of northern Sheffield, there’s a variety of shops, parks and schools across all in close vicinity.

Tenant-wise, you won’t find many students here. Instead, it’s a convenient and attractive option for buy-to-let investors targeting families. Expect solid rental yields of 6.3%.

The average property price of £154,505 makes it accessible for new and experienced investors alike, and the huge 45% increase in prices is a major USP.

That growth represents the largest change in property prices across the entire city and shows just how much demand has changed in S5. The only postcode that comes close to repeating that level of growth is the next on our list…

S2 – Heeley, Highfield, Norfolk Park, Park Hill

Covering a large block of South East Sheffield, S2 is a mostly residential area with a little bit of everything: terraced houses, new builds, council estates, and apartment blocks.

Several fantastic green spaces and parks play host to festivals and events throughout the year, while Sheffield United’s Bramall Lane stadium brings thousands to the area each match day.

There are also plenty of excellent local amenities, shops, restaurants and schools in the area, so it’s easy to see why it has become such a popular option for families.

Residential property prices here have risen by an incredible 43% over the past five years, generating landlords a 6.2% yield.

S1 – Sheffield city centre

Sheffield’s S1 postcode covers the majority of the city centre, where most of the investment opportunities are buy-to-let apartments.

Despite it being a city centre, there’s a healthy mix of budget options and high-end developments that cater to everyone from students to families. This makes S1 an accessible and attractive choice for landlords with different goals.

The city centre itself has undergone a series of regeneration projects in recent years, all of which have helped to boost rental demand. Areas such as the Peace Gardens and the Moor – the city’s main high street – attract thousands of people every day.

Sheffield’s historic theatres, the Crucible and the Lyceum, are also in the centre and form the cultural heartbeat of the city.

The area is particularly popular with professionals who work centrally, but given the train station is only a 10-minute walk from the centre, it’s also perfect for those who regularly commute to other cities.

All of that means S1 is one of the most in-demand places for tenants. This has pushed rental prices up in recent years, giving S1 one of the best average rental yields in the city (6.9%, second only to S3).

S6 – Crookesmore, Hillsborough, Loxley, Middlewood

The S6 postcode stretches out from central Sheffield and deep into the Peak District.

However, it’s the parts of S6 that are closest to the city which drive the area’s performance. Crookesmore, in particular, is a hotspot for students from the University of Sheffield, who dominate the streets near Ponderosa Park due to the easy access to the university campus.

A little further out, there’s Hillsborough, home to Sheffield Wednesday Football Club, several retail parks, and large residential estates. The students have thinned out by this point and it’s mainly families.

Although rental yields average just 4.8%, in reality this will be much higher if you aim for student accommodation closer to the city.

S3 – Broomhall, Burngreave, Kelham Island, Neepsend, Netherthorpe

With relatively low average property prices and an exceptional rental yield of 7.5%, S3 is one of the second-best buy-to-let locations in Sheffield. The area covers several popular inner-city neighbourhoods and is home to some of the region’s most successful regeneration schemes. 

That includes Kelham Island, an old manufacturing site that was, until recently, full of abandoned factories. It’s now one of the city’s cultural highlights, full of life each day as people mill between indie breweries, night markets, food halls and galleries.

The postcode boasts a range of different types of property investment opportunities, including both modern apartments and more traditional terraced houses. The bustling bar and restaurant scene attracts young professionals and students, making it a prime destination for city centre living and a great choice for property investment in Sheffield.

Why Should You Invest In Sheffield?

Sheffield is a city on the rise. Over the past 15-20 years, it has gradually reinvented its image from the ‘Steel City’ into a bustling hub for technology and sports-related business.

The city has two universities – the University of Sheffield and Sheffield Hallam University – which together attract north of 60,000 students every year. Alongside this, the pulse of the local economy is fuelled even further by a thriving population of young professionals, which helps to keep rental properties in high demand throughout the year, even out of term time.

Numerous multi-million-pound regeneration projects have been undertaken by the local council in recent years, including the redevelopment of the historic areas of Castlegate, Attercliffe and Angel Street. Investment in traffic-free public spaces has also given pedestrians and cyclists access to safe, pleasant routes to and from the city centre. These measures are creating the opportunity for more outdoor events, which is expected to attract more and more investment in the city.

House prices are accessible to most investors, commanding an average price of £247,553 (source: Rightmove). Compare that to Manchester (£266,476), Leeds (£276,256) and London (£688,935), and it’s easy to see why many investors are turning their attention to South Yorkshire.

Sheffield also has the benefit of quick connections to other major cities, such as London via the M1, Leeds via the M18 and Manchester via the M67.

Considering investing in a buy-to-let property in Sheffield?

There are many reasons why Sheffield and its surrounding areas have become a compelling option for buy-to-let landlords in recent years.

Along with affordable property prices, the significant regeneration of the city and transformation into one of the UK’s most popular student destinations has led to a booming rental market which shows no signs of slowing anytime soon.

With even further growth expected over the coming 3-5 years, now is the perfect time to consider a buy-to-let investment.

Feel free to get in touch with our friendly team to discuss your options and next potential purchase.

Note: The data in this article is an accurate representation of the Sheffield property market as of December 2024. We’ll review statistics and update this report next year, in 2025, with fresh data.