Why Buy & Invest in Property in Sheffield? | 2025 Investment Guide
Alliance Investments
Sheffield is a vibrant city of contrasts. Located in the heart of the UK, it combines a first-class modern urban living environment and a bustling city centre culture with some of the UK’s most beautiful countryside and easy transport links to the rest of the country.
Also known as the Steel City, Sheffield grew up around its steel industry and has continued that history of entrepreneurship and innovation into the modern day. This is a city of makers which benefits from world-class research at its universities and a worldwide business reach.
The city is an outstanding UK property hotspot with a growing population and a housing market that cannot keep up with demand – making it an ideal place to invest in 2025.
Huge demand for housing, low available supply
Sheffield’s population of more than 556,000 increased by 6,000 in the last full year on record and City Council projections show that it could rise by another 62,000 by 2034. This is a lot of new people and they will all require housing – a fact which makes Sheffield one of the premier investment opportunities in the UK.
According to data from the Office for National Statistics:
- House prices went up 6.7% in 2024
- Rents went up 8% in 2024
In the future, the imbalance between supply and demand will keep prices going up. The latest revised forecasts from Savills show that Sheffield’s region will see house price growth of 28.2% by the end of 2029.
Daniel Copley, Consumer Spokesperson at Zoopla, said rising rents in Sheffield are “due to the demand/supply imbalance in [the] urban centre over the past year which is underpinned by large student populations and the fact that all [the city is a] major regional employer.”
The regeneration of Sheffield city centre
Sheffield city centre is home to multiple regeneration masterplan sites which are changing the face of the city and making it a top 21st century UK destination.
Major projects include:
- Town Hall Regeneration – Fixing structural defects, boosting accessibility, improving access to historical and cultural access to grow visitor economy.
- Heart of the City – A multi-phase, mixed-use commercial and retail development in the city centre that has created a new business, shopping and leisure hub for Sheffield.
- Castlegate – The renewal of the old Sheffield Castle site is opening up the riverfront, creating a new urban park and delivering a 500-person event space in the city centre.
- Kelham Island – Ongoing regeneration of the most popular area of Sheffield for trendy new businesses, young professionals and international students.
Sheffield’s economic strength
Sheffield has the economic growth potential to lead a 21st century export boom built around a “high skilled, modern manufacturing economy, combining digital innovation, world class expertise, academic research and a global brand.”
The city’s economy is worth approximately £15.5bn per annum and supports more than 260,000 jobs, making it the fifth most economically active city in England. Historic strengths in advanced manufacturing combine with modern industries like digital, creative, communication technology, financial service, healthcare and more to create a vibrant, resilient economy.
Sheffield’s Strategic Economic Plan lays out the scale of ambition found here. By 2041 it is anticipated that Sheffield will:
- Add a further £7.6bn to its economy
- Employ an additional 33,000 people in high level roles
- Triple research and development investment to £1.1bn annually
- Grow wages by £1,500 per person
Investing in Sheffield now means choosing a city that is growing fast and has bold, ambitious plans for the future. In short, it is exactly the sort of place that people from around the world want to be – and they all need homes.
Transport upgrades: The renewed Supertram network
Sheffield’s “Supertram” network spans the city and makes getting around easy and affordable. For residents, students and businesses, it’s a major reason to choose Sheffield over other UK cities that don’t have such an impressive transport infrastructure.
Four lines, 50 stations and 98.7 million journeys each year make it one of the biggest, most significant light rail networks in the UK.
Now, the government has confirmed that the Supertram is to benefit from a major investment in the years ahead to make it even more of an asset for Sheffield. It is one of three major projects cited by the Chancellor, Rachel Reeves, that will share a huge £1.3bn transport infrastructure investment fund to deliver:
- New overhead lines
- New tracks
- Network upgrades
- Additional trams to add more capacity
She said: “We will deliver £1.3bn of funding to improve connectivity in our city regions. Funding projects like the Brierley Hill metro extension in the West Midlands, the renewal of Sheffield Supertram and the West Yorkshire Mass Transit including in Bradford and Leeds.”
This is good news for anyone buying property in Sheffield, whether you are an owner-occupier or an investor. Put simply, property close to a tram network is likely to increase in value faster than properties that don’t have those convenient transport links.
A study from the University of Leeds showed that across the North there is a premium on being well connected. Ease of access to employment is a key driver of property values, with rail, road and pedestrian accessibility to jobs all adding value.
Buy property in Sheffield
2025 is the perfect time to invest in Sheffield buy to let property for sale. The economy is growing, investment is rising, the population is expanding and there are not enough homes to go around.
Rising demand is raising property values and rents, creating the perfect conditions for investment. Want to buy Sheffield property? Contact our team today to discover our latest projects.
