COMMENT Leeds city centre has undergone a huge transformation over the past 10 years. Major new developments including Wellington Place; Aire Park in Leeds South Bank; major upgrades to the train station; and the addition of the Trinity and Victoria Gate Shopping Centres have completely changed the shape of the city, but what next?
Leeds is evolving, with some superb developments and placemaking as a result of the council’s regeneration project and private investment into emerging areas including Holbeck – which has recently secured more than £15m through the government’s Levelling Up fund – and its Temple Works scheme, Kirkstall Road, and the Aire Valley Action Plan Area, providing a platform for the city to continue to flourish.
Leeds has all the potential to be a global city but in order to realise these aspirations, it needs to continue to respond to the evolving market. A major contributor to that is the impending Leeds Local Plan 2040, which could harness the power of markets and hold the key to the future of the city. Setting the direction of planning policy in Leeds across a range of areas and shaping future locations for development, the local plan is expected to be published in autumn and could make – or break – the city.
Unintended consequences
In addition to regeneration, and arguably an unintended consequence of the current local plan, has been the provision of a significant amount of student accommodation and one- and two-bedroom flats – something which has been both necessary and unsurprising given that the city has two major universities. As a result, family housing is now lacking, with little to none built in central Leeds during this period of regeneration and change.
This has to change as the city increases in popularity, creating demand for more housing, particularly by those employed in the higher-paid and fast-growing professional service and innovation sectors. There is a clear and growing need for more traditional housing to complement the successful regeneration programme of recent years. According to the Savills Repeat Sales Index, house prices in Leeds have remained relatively flat during 2023 and are 27% higher than in March 2020, before the Covid-19 pandemic. While our recent residential property forecasts indicate that house prices across Yorkshire will be 2.5% lower at the end of 2024 compared with the end of 2023 – with a drop of 3% expected across the wider UK – Leeds will be relatively less affected due to its resilient economy. According to Oxford Economics, it is expected to grow by 13% over the next 10 years.
Growth potential
Looking ahead, the city’s value gap, excellent schooling and quality of life means there is more capacity for growth, with analysis from our research team showing development land values in the region are proving more resilient than the national average.
The city has attracted some big names during the current local plan period, with Wellington Place being selected as a government hub – which brought 6,000 new civil servants to Leeds – and Channel 4 choosing the city as its new home following an intense bidding period against some of the UK’s major cities. However, the shortfall in good-quality homes for families and professionals can be easily rectified by releasing more green belt land. This is something which needs to be addressed in the upcoming local plan in order to continue to attract new industries and workforces to the area, and to further unlock the city’s capability to continue on its growth trajectory.
Above and beyond
The city is leading the way in addressing climate change and going above and beyond national requirements. A recent report from Leeds City Council proposed revisions to policies to address climate change, such as a requirement for all planning applications submitted from 2028 onwards to demonstrate that any development will be net zero, and encouraging the reuse of buildings rather than demolition. Repurposing old buildings and breathing life back into redundant spaces is something we are seeing more of, with limited vacant space and demand for strong ESG credentials the driving force behind this trend.
The update will also strengthen some of the existing development management policies, including a requirement for health impact assessments for developments with more than 100 dwellings, buffers to trees depending on the size and age, and strengthening of surface water disposal requirements. It also sets out how biodiversity net gain will be implemented. All of this demonstrates the city’s ambition and presents some fantastic opportunity for innovation and investment.
Leeds benefits greatly from its location in the centre of the UK, and its excellent links to major roads, railways and ports, coupled with relatively low rents, makes it a prime destination for industrial and logistics space. These advantages could easily be utilised through development proposals in the future.
Central government commitment to significant East-West rail improvements will better connect Leeds to other significant centres of population, businesses and expertise. This can only assist with growth for Leeds and the North of England generally.
While activity for the sector slowed the first half of this year, growing occupier requirements for built-to-suit developments in key locations presents a significant opportunity in the next local plan for developing around motorway junctions, from both a residential and commercial perspective.
The next chapter for Leeds is an exciting one, but in order to move forward, the city will need the necessary policies and governance in place to speed up the pace of change.
Rebecca Housam is planning director at Savills Leeds
