Why graduates increasingly want to stay in booming city of Leeds: Eamon Fox

First, regeneration and residential development projects are crucial in creating attractive city centres where people want to live and work. London has historically been a net exporter of students, whilst large regional cities such as Manchester, Leeds and Birmingham are net importers.

This trend typically reverses upon graduation. Graduates want affordable homes in great locations, close to work and entertainment. Student accommodation has improved and professionalised over the last decade. Graduates want more of the same, post-study. And Leeds now provides this.

It is important to note that UK cities contribute 61 per cent to the national economy, underscoring the vast opportunities available in the real estate market. Cities like Leeds have seen significant changes in population and dynamics, reshaping how real estate is developed and utilised. Leeds’s evolution from a city that struggled to retain talent to now a thriving hub that offers competitive amenities and accommodation for young professionals.

In Leeds, collaboration between higher education institutions and businesses has been instrumental in aligning courses with industry needs, helping to foster a more skilled workforce. This focus on education is crucial for cities like Leeds, where the economy is transitioning towards sectors like Information and Communications, a change which is

expected to take full effect by 2050.

As Prof Catherine O’Connor, the Pro Vice Chancellor for Education and Experience at Leeds Trinity University explains: “A crucial factor in a thriving economy is the ability of businesses to recruit talent and university graduates are a key part of this talent pipeline. To underpin this, strong working relationships between universities and business are fundamental.

“The Leeds area is home to seven higher education institutions and more than 100,000 students. Data from the West Yorkshire Combined Authority shows that 52 per cent of graduates who study in West Yorkshire stay in West Yorkshire and 58 per cent of graduates who leave to study elsewhere return to the county.”

Leeds is benefiting from the first-class education establishments in its midst, with the new Mathematics School of Excellence now open in Albion Street and Leeds Trinity University having moved into its magnificent city campus at Trevelyan Square in Boar Lane. At the same time, we have recently completed two more education-based deals, involving the Leeds International Study Centre and the Institute of Contemporary Music Performance, which have further enhanced graduate retention within the city, both opening their doors after summer 2025.

Economic, social, geographical and employment factors all contribute to whether graduates decide to live and work in their chosen university towns post-study. Retention rates differ significantly among cities throughout the UK, yet there is a unanimous acknowledgement of the long-term economic benefits that retaining talent provides to each city. In the future, retaining talent will take on even greater importance in the context of the industrial, organisational and economic shifts underway across the major UK towns and cities.

Consequently, devising and implementing strategies that foster an appealing environment for highly skilled students to remain in the area is a priority for local authority leaders and policymakers.

This is what Leeds is doing so well. Given the critical role that skilled individuals play in the economic development of UK cities, our city leaders are gaining a deeper understanding of the migration patterns of students and graduates. This knowledge is crucial in comprehending their decisions to move to, or from, specific locations and shaping policy to mitigate migration.

Clearly access to good jobs is a key driver for graduates. But other critical factors are at play too, with access to suitable housing high on that list.

Graduates want affordable homes in great locations, close to work and entertainment. Student accommodation has improved significantly and become professionalised over the last decade in Leeds meaning graduates want more of the same once they have graduated.

Retaining talent in a city builds human capital, and the increasing knowledge and skills held in a city will all be strongly linked to regional growth. Universities are integral to the economic fabric of any city, but the accommodation the students stay in while attending university and post-graduation play a huge role in how their experience in the city is perceived. Our seminal report, UK Cities DNA, graphically illustrates that our enlightened city of Leeds is doing exactly that.

Eamon Fox is a partner and office head at the Leeds office of global property consultancy Knight Frank