Why York Should Be On Your List Of Places To Invest In Property

York, with its thriving tourist industry and rich cultural heritage, provides ample opportunities for property developers and investors looking to expand their portfolio. With its convenient transport links to the rest of the UK and some large development plans due to unravel over the next decade, now is an ideal time to start looking for new properties in this beautiful city.

In this area update we’ll look at the current state of the property market and some predictions for York’s future, outlining why it should be on your list of places to make investments.

A Return to Pre-Pandemic Levels

The property market in the UK has gone through a turbulent few years, however we are slowly seeing rates heading back towards pre-pandemic levels. We previously looked at figures showing that the demand for properties was outweighing the supply, but that no longer means that sellers are receiving offers far over and above the asking price as it did throughout the pandemic. Instead, buyers are biding their time and negotiating their prices more confidently.

In Q1 of 2024, the average asking price of houses coming onto the market in York was £376,621. However, over Q1 the average selling price was £353,939. For property investors and developers, this means that a strategic and patient approach to both buying and selling is crucial to maximise your profits. As a seller, it’s important to enter the market at a realistic price, as buyers are no longer jumping to offer above the asking price in order to secure a property. Conversely, when you are investing in a property, it’s wise to lead your negotiations confidently rather than purchasing hastily and paying more than you have to.

York’s Tourist Market

York’s tourism industry is indisputably thriving. It’s a city rich in history and culture, attracting over 7 million visitors per year. The tourism sector brings in approximately £443 million per annum - a sizeable percentage of York’s wider economy, which is estimated to be around £5 billion. Its glowing reputation as an ideal location for city breaks brings promising opportunities to those looking to enter the holiday rental space, with Serviced Accommodation proving lucrative. This is boosted even further by York’s central position in the UK - situated just 2 hours from London and 2.5 hours from Edinburgh by train, York’s holiday market is extremely popular as a base for those looking to spend time exploring the UK.

Strategic Economic Plans

York is in the process of receiving over £2.4 billion in funding as part of the 2022-2032 Strategic Economic Plan. This development plan is managed by the West Yorkshire Combined Authority and the Leeds City Region Enterprise Partnership and its aim is to regenerate the city’s transport, housing and infrastructure. Some of the expected investments include £317 million to improve public transport, more than £70 million on road improvements and a share of a £179 million fund through The Doctoral Training Partnerships scheme aiming to improve scientific and technological research. The Strategic Economic Plan aims “to deliver an extra 36,000 jobs and £3.7 billion of economic output by 2036” which will draw even more people towards York. This bodes well for those looking for strong long-term returns on their investments, as the already thriving city is set to become even more attractive.

Final Words

A strategic approach to property investing is crucial if you want to maximise your profit. Now is an excellent time to look at investing within York. The already buzzing tourist market is set to increase further over the next decade and will be excellent for those seeking strong ROI's and stable growth rates.