Leeds sees second highest number of new construction projects since records began in 2007

The data, collected in Deloitte’s Regional Crane Survey, also shows five residential new starts and 3,226 homes under construction across 15 residential schemes in the city centre.

Cllr James Lewis, Leader of Leeds City Council, said: “2022 was clearly another very strong year for the Leeds’ property market, following our record-breaking year in 2021, and there is already much to look forward to in 2023.”

As well as buildings, the city continued to improve its “space”, with five public realm schemes under construction in 2022 as part of Leeds’ Grey to Green Programme, which includes Aire Park’s Meadow Lane and the pedestrianisation of City Square.

Deloitte’s data shows that over 850,000 sq ft of office floorspace is currently under construction and that two new office developments broke ground within the year. Two new hotels also commenced construction in 2022.

As well as the seven student residential new starts, 2022 saw a Crane Survey record of 11 schemes under construction (3,294 beds) - a 48 per cent increase from 2021.

Nolan Tucker, director in Real Assets Advisory at Deloitte in Leeds, said: “The increase in construction activity in the student accommodation sector follows investment in previous years from higher education institutions to attract talent. It is also in response to a continued increase in student numbers in Leeds.”

Mr Tucker also noted the role sustainability was playing in developments across the city, adding: “The Leeds office market continues to deliver innovative developments with net zero carbon status or that are ‘BREEAM* Excellent’ rated, such as the recent completion of Globe Point in 2022.

“There were examples of sustainability-led residential developments in Leeds, with the award-winning City Climate Innovation District but there is work to be done to develop more accessible and sustainable residential developments.”

Leeds Climate Innovation District was created by sustainable developer Citu, and comprises of homes built with various sustainability measures including the use of timber frames, and Mechanical Ventilation Heat Recovery Systems.

Over 2022, Leeds saw five new residential starts set to deliver 747 new homes. There were 15 residential schemes under construction in 2022, comprising of 3,226 homes, and eight residential completions comprising 1,390 homes in total.

Data shows continued demand for housing stock in the city centre, with records noting double-digit rental growth in Leeds in 2022. The private rented sector, across the city as a whole, has grown to account for 20 per cent of housing stock compared to owner-occupier figures in Leeds which has decreased to 60 per cent. This year’s Crane Survey also showed that 65 per cent of residential developments under construction in the city centre were build to rent, with 2,101 units coming forward.

Census data showed that the Leeds population had increased by 8.1 per cent from 751,000 in 2011 to 812,000 in 2021, an average 1.5 per cent higher than the UK population increase.