Leeds is one of the fastest-growing cities in the region for house prices
Leeds has gained recognition as one of The Times’ best places to live, a distinction that has notably influenced its housing market dynamics. Elliott Benson (pictured), of Sett Mortgages, who has been closely involved with the property scene in Leeds for over a decade, believes this accolade significantly impacts residents' and potential buyers' perceptions.
"It probably does subconsciously affect people," he told Mortgage Introducer. "People like living in the city, and I think that does come from things like that, and it's good to get that renown as a city as well.”
Leeds is one of the fastest-growing cities in the region for house prices. When comparing Leeds and Manchester, both of which are considered property hotspots in the UK, the average house price in Leeds for 2024 was £249,000, just slightly behind Manchester’s average of £253,000. In October 2024, Leeds had the third-highest average house price in Yorkshire and The Humber. The economic growth of Leeds, spurred by major companies like Sky Betting & Gaming and Channel 4 establishing offices in the city, has further compounded the housing demand.
"It creates more of a buzz about the city," Benson said. “And from that, there's more people that will need places to live in Leeds. From what I see, [there’s] more people buying within Leeds as opposed to moving out of Leeds or moving into Leeds. However, I think given that you've got so many big, bigger companies here, [there’s now] a lot more opportunity for people that are wanting to [relocate here] – maybe rent for a bit and then buy - because their jobs are based here.”
And while the accolade as one of the best places to live has certainly seen Leeds thrive – the city has always been alive and kicking.
"Leeds has always been a busy market," Benson said, emphasising the city's long-standing appeal. He observed a significant trend where first-time buyers and those moving from central or student areas opt for suburban locales. This influx is not without its effects on property values, particularly in hotspots like the LS7, LS8, and LS17 areas.
“These areas consistently go over the asking price," Bensonsaid, indicating robust growth and sustained interest from buyers. "There are a lot of new build sites around Leeds but there's a lot more demand than supply at the moment, especially in second-hand residential properties."
Benson also highlighted the cultural and commercial growth of Leeds, which has bolstered the demand for residential properties, while commercial properties lag slightly behind.
“We don't really have many [smaller] commercial properties," he said, suggesting potential growth areas for the city's commercial sector, “if you look at Manchester and what they've done with mixed-use developments, where they've got buildings that have got bars and accommodation in them. We don't really have stuff like that in Leeds, which would make the city centre a bit more varied.”
And, as for the future, Benson remains optimistic.
“Over the next year or so we might have a little bit of uncertainty, but I think if things continue as they did towards the end of last year – with the base rate coming down – I think it's just going to get busier. There'll be more movement within Leeds and more people moving [here] simply because I think a lot of people may have held off doing what they planned to do last year [due to rates]. I'm quite positive about the market for now; I think it's only going to get better. I don't think it's going to get worse.”
