Why Yorkshire's property market has seen the strongest recovery in the UK

Speaking to The Yorkshire Post, Allan Wilen, economic director at construction intelligence firm Glenigan, inset, said the value of projects below £100m that started in the region last year is expected to have grown by 40 per cent compared to the previous year, once the figures for the end of the year have been finalised.

“There has been more activity happening in Yorkshire than there has been in London and the South East,” he said.

“London has been a laggard due to changes in the economy, the impact of the pandemic and also signs of a shift in government policy.

“There’s no hard cash coming through yet but clearly there’s been a shift of intent in the way they’re trying to direct things.

“That’s helped to build confidence and bring a lot of projects forward in Yorkshire.”

Glenigan’s latest data shows that just over £5.4bn worth of projects received detailed planning approval last year in Yorkshire, up from just under £5.4bn in 2020.

The region saw a 31 per cent rise in the value of project starts - from £3.3bn to £4.2bn in total last year.

Mr Wilen said: “There was a strong pipeline of projects that got approval in 2019 and 2020 and that helped support the bounceback we saw last year in Yorkshire.

“We’re forecasting a six per cent retreat this year but Yorkshire was the strongest growing part of the country last year so it’s catching a breath a little bit perhaps before we see further renewed growth of 15 per cent from 2023.”

There was a 223 per cent rise in the value of community and amenities projects that gained planning approvals in 2021 - £197m compared to £61m the previous year.

However, the most valuable sector was private housing, which saw £2.4bn worth of detailed planning applications approved last year - a seven per cent increase on the 2020 figure of £2.3bn.

The industrial property sector continued its strong growth streak, with a 30 per cent increase in the value of planning approvals - £883m compared to £680m the previous year.

The value of industrial projects starting on site rose to £553m in 2021 - a 54 per cent increase on the previous year.

“Certainly over the next year we’re expecting further strong growth, particularly for the ‘final mile’ smaller distribution facilities,” Mr Wilen said.

“Manufacturing will face some economic headwinds but as long as the domestic market holds up, it should continue to grow in the near term.”

While the value of office building projects starting on site rose by 213 per cent - from £112m to £351m - the value of planning approvals for new office buildings fell by 71 per cent to £145m.

Mr Wilen said: “Commercial office projects coming forward are being driven by refurbishments, reflecting the uncertainty over what the demand is going to be like over the next year and the impact of hybrid working on a permanent basis.”

Mr Wilen added: “People are reorganising the way they work and want to make the most of their space when people are in the office together.”

The value of new retail schemes receiving planning permission fell by 22 per cent last year to £147m, down from £189m in 2020.

The value of retail project starts in 2021 fell by 14 per cent to £138m, down from £161m in 2020.

“There is quite an overhang of empty retail premises,” Mr Wilen said. “Covid has accelerated the changes to the way people shop and I think that’s got big implications for shopping centres and retail parks but I expect to see confidence grow in hospitality and leisure this year.”