- Readers Rating
- No Rating Yet!
- Your Rating
Leeds city centre is set to see average investment property prices grow by 3.5 per cent in 2018 according to new predictions from property consultant JLL.
The New Housing Paradigm report from JLL reveals that Leeds is set to see strong price growth over the next five years, averaging at 3.7 per cent per annum. This will be second only to Manchester in terms of growth expectations.
JLL predicts that average rents for a two-bedroom flat in the city will grow by 3.5 per cent this year as well as by an annual 3.5 per cent for the next five years.
Head of residential at JLL in Leeds, Charles Calvert, said: ‘While rents for city centre flats remained flat in 2017, we expect average rental growth of 3.5 per cent per annum over the next five years. This forecast makes Leeds our standout market to watch for rental growth over this period.
JLL predicted that housing markets in parts of Northern England will be amongst the strongest over the coming five years. This news comes as London is beginning to see its housing market stagnate. Housing market growth in the south of England has been slowly stabilising as high property prices deter prospective investors.
It was also found that there is growing demand in Leeds’ build to rent market, fueled by young professionals and affluent students. Leeds currently boats 3,500 build to rent units along with a further 2,000 private sale units in the short-term development pipeline.
Calvert added: ‘Crucially the new BTR supply coming to the market will satisfy the premium tier of rental demand that is currently completely under-served. The growth of built-to-rent developments in the city is very welcome as this asset class has to date performed incredibly well in Manchester. We expect this interest will continue over the coming years too, with developers and landlords optimising the model.’