‘Oversupply a distant memory’ as cranes set to return for Leeds residential builds

PROPERTY agency JLL is predicting a reawakening of the Leeds residential market and expects to see the first cranes in five years appear on new sites.

The Leeds city centre residential development market has remained dormant for several years, but may be taking an upturn as construction begins on at least one new housing scheme this year.

The Calls Wharf development is expected to obtain planning consent imminently, with an anticipated start on site later in the year, and a couple of other schemes on the radar will foster heightened activity in the sales and lettings market.

Guy Ackernley, head of residential at JLL in Leeds said: “Leeds has historically been the focus of media attention surrounding the oversupply of apartments in the city centre.

“But with occupancy rates in excess of 98%, this is now a distant memory. We are faced with significant demand for quality, well-located properties, for both sales and lettings and we urgently need new development to satisfy the ever increasing demand.”

He added: “The Leeds residential market is seeing the first signs of genuine momentum since the downturn.

“This is leading to a range of industry activity, notably through the nascent stages of the local build-to-rent market, which has the potential to drive the next phase of urban renaissance in Leeds.”

JLL forecasts that the city will see house price rises of 4% this year with increases of 3-5% a year over the following four years.

In the city centre rental market, JLL forecasts growth of up to 5% a year over the next two years.