Leeds residential sector remains resilient despite drop in new construction starts

Deloitte’s latest Leeds Crane Survey noted a slowdown in new starts, as construction inflation and wider economic challenges impacted development activity throughout 2024.
The survey, now in its 18th year, monitored construction activity in Leeds city centre across a range of sectors including offices, residential, hotels, retail and leisure, education and student housing during the 12 months of 2024.
It recorded 11 new schemes breaking ground on site – the lowest number of new construction starts since 2013.
However, it also reported a healthy development pipeline of activity with 26 sites under construction, and a further 19 projects were completed in 2024.
The Leeds Crane Survey is part of Deloitte’s Regional Crane Survey series, which monitors construction activity within four UK cities, across a range of sectors including office, residential, hotels, retail and leisure, education and student housing.
Across all surveys – Belfast, Birmingham, Leeds and Manchester – 47 new construction starts were recorded in 2024 compared to 63 in 2023.
In the residential sector, 1,361 homes were brought to market in 2024 with a further 4,185 under construction.
The development pipeline suggests there will be a healthy number of homes likely to complete in 2025, with record-breaking levels anticipated for 2026. Five new residential schemes were launched in 2024, down from seven in 2023.
In the student residential sector, 1,622 bedspaces were completed in 2024, with a further 2,511 under construction. Three student residential schemes started construction.
Half (50%) of the student residential developments under construction are located in the city core, which are expected to deliver 1,128 bedspaces in 2025 and 2026.
Nolan Tucker, infrastructure and real estate director at Deloitte, said: “Leeds city centre has seen exponential growth in development activity over the last decade, but this survey paints a more challenging picture of progress.
“Construction inflation costs and evolving occupier needs have seen a recalibration in developer and investor plans.
“However, despite new construction starts falling overall, the residential sector continues to demonstrate resilience, while Leeds’s substantial student population maintains a healthy demand for student accommodation.”
Leeds saw two new office developments start construction in 2024, below the five-year average of four new starts. All new office space currently under construction is located in the city core and South Bank.
There were three office completions, all in the West End district with one new build and two refurbishments delivering over 400,000 sq.ft. of office floorspace.
West Village and 14 King Street are both refurbishment projects and represent two of the three office schemes brought to market in 2024.
Tucker said: “While the construction of new offices has slowed, significant refurbishments are breathing life into existing office schemes.
“Businesses seeking high-quality spaces that are sustainable, adaptable, and offer flexibility are driving demand for contemporary and environmentally-focused refurbishments.”
While 2023 saw a notable amount of new education space delivered (197,462 sq ft), 2024 saw no completions.
However, Leeds City College Mabgate Campus and the Arts University Extension, are expected to deliver 83,562 sq ft in 2025.
One new hotel scheme began construction in 2024, while there was no new activity in the hospitality, retail and leisure, education, healthcare or transport sectors.
331 new hotel rooms were brought to market in 2024 with the completion of the Sovereign Square Hyatt Hotel, the largest number of hotel rooms delivered since the peak in 2017.
Councillor James Lewis
In retail, Leeds saw 82,103 sq ft of retail and leisure space completed in 2024, driven by projects such as the new Flannels flagship store on Briggate.
Councillor James Lewis, leader of Leeds City Council, said: “Leeds continues to demonstrate its resilience and ambition even amidst a challenging economic backdrop.
“The latest Crane survey figures reflect the city’s ongoing commitment to inclusive and sustainable growth, with significant development and investment happening across the city.
“We continue to push forward with bold ambitions as evidenced by the current transformation of areas like South Bank and Aire Park and future plans for our city centre and wider communities as part of our ten-year Vision for Leeds plan.”