City property booming

City property booming

A marked upturn in the fortunes of the Leeds city centre property market has been recorded.

A new reportfrom Jones Lang LaSalle shows sales and lettings in the city are on the up, with enquiries rising 50%. It also highlights the chronic shortage of available stock.

Saxton remains Leeds’ only new build development on the market, with Marshall CDP submitting planning for a mixed-use scheme containing 77 apartments on the Calls Wharf site, and Taylor Wimpey submitting a revised application on the Green Bank site.

Meanwhile, yields stand at 6.5%, with an average one bed flat costing £110,000
and renting at £575 per month and an average two bed costing £140,000 and renting at £750.

The report attributes the impact of the Government’s stimulus measures such as Help to Buy and the Funding for Lending Scheme together with an increase in buy to let and parent purchasers as helping to significantly improved the sales market.

Guy Ackernley, head of residential in Jones Lang LaSalle’s Leeds office, said: “Heightened sales activity and two new planning applications suggest better times ahead.

“The market perception for a number of years has been that Leeds was suffering from an oversupply. However, the reality is that a lack of new stock is proving to be an issue for would-be buyers in the city centre. With many units locked into the rentals market and with no new development starts in recent years there is now a chronic shortage of apartments to let and buy.”

Jones Lang LaSalle estimates that more than 43,000 new homes must be built in northern England every year to keep pace with demand, though just half this level is currently being completed.

The highest number of additional homes needed is in Yorkshire and the Humber, with forecasts suggesting that 18,000 new homes are required every year, shortly followed by the North West with 17,500.