From new builds to city centre demands, the northern powerhouse is levelling up
Sheffield, often tagged on "worst places to live" lists, is experiencing a transformative revival – finally debunking the stigma these lists perpetuate. In recent years, the property market has boomed welcoming an influx of new residents and families looking to make their budgets stretch further.
“Don't believe everything you read," said Troy Mallard (pictured), of Mallard Mortgages, emphasising the need to form an individual perspective.
“I don't think it has much of a bad reputation. The reputation, if anything, is that house prices are lower here than they are in other areas. [After all], the further north you go, the lower the house prices get. [However], this is bespoke from area to area – some places notoriously have more of a bad reputation [and so] prices are going to be lower to drive demands. Then there’s the affluent areas where more people want to live there, driving the prices up.”
Paying for a postcode
Research from Rightmove found that the provisional average house price in Sheffield in October 2024 was £226,000, which is significantly less than the UK average of £295,000. Across the area of Yorkshire and The Humber, the average house price in October 2024 was £217,000, and Sheffield had the fifth highest average house price in this area.
The real estate landscape in Sheffield is a testament to its resurgence, particularly through new developments that are revitalising areas once marred by industrial decline.
"We work with new-build builders,” Mallard said. “I live in Waverly where it's completely different, the prices are massively inflated because of the area.” This in itself highlights the dichotomy within the city – while some areas enjoy a premium on their value, others like Dinnington offer substantial savings, with differences amounting to £100,000 for similar properties.
The influx of new builds on previously neglected lands, such as old steel works and mining areas, is not just altering perceptions – it’s also injecting economic vitality into the region.
"The bigger developers have been clever with the land that they've chosen. It's derelict lands and it's good for the local community because it drives investment," Mallard said.
City centre demand
These new developments are particularly appealing to a diverse clientele, including many foreign nationals who are drawn to the city for its robust transportation links and affordable living options.
“A lot of foreign nationals come to the UK and to the Sheffield area... they tend to be in areas of good transportation links. It’s also cheaper to live in these certain areas on these new border estates," Mallard said.
Yet, this revitalisation is not without its challenges, with the perception of certain neighbourhoods continuing to affect the housing market.
“There's so much demand now to be in the city centre,” Mallard said. “But then on the outskirts, there’s also a lot of new builds going up.”
The challenge lies in balancing the allure of new properties with the charm and potential of older ones. Investors are increasingly drawn to the energy efficiency and modern amenities offered by new builds, leaving older properties reliant on a niche market of buyers willing to invest in renovations.
And this local housing market's dynamics is reflective of broader economic trends. Sheffield is seeing an increasing interest from first-time home buyers and investors alike, buoyed by competitive housing prices and a bustling city atmosphere enriched by areas like Kelham Island – an up-and-coming neighbourhood praised for its vibrant community life.
“From a housing point of view, if the city centre [is] better, more people would live closer to it because it's more of an attraction,” Mallard said. “As the city centre is becoming more and more popular, as well as the outskirts because of the transportation links, a lot of people who live around the Retford area work up here because of transport and train links. And so, from a desirability point of view, the housing market is just going to keep picking up.”
