JLL sees ‘mood music’ change for regional resi

A change in the “mood music” of the housing market bodes well for the UK’s big six regional cities, according to JLL. The agency’s latest Big Six Residential Development Report, covers Manchester, Birmingham, Leeds, Bristol, Edinburgh and Glasgow. “Early indicators suggest activity is increasing and the outlook for the market from both purchasers and property professionals is increasingly optimistic,” the agency said. The build-to-rent market has proved a “bright spot” during a challenging period, JLL added, with investment across the six cities falling by just 5% to £1.1bn last year. Birmingham drove activity, including funding deals for Moda’s Great Charles Street scheme and Outpost’s Lower Essex Square site. In the sales market, price growth slowed to an average of 2.7% across the cities, with the highest growth in Edinburgh (5.8%) and Glasgow (4.2%). “The big six have seen some of the highest growth in new households in recent years, with increases in urban populations far outpacing rural,” JLL’s report said. “But the demand for homes, alongside challenges over development viability, means we expect fewer new homes to be delivered. This will mean the cities will continue to see an imbalance between new stock and demand, in turn supporting growth in prices and rents.” Marcus Dixon, director of UK residential research at JLL, said: “Make no bones about it, 2023 was a challenge for the UK housing market. “Yet it continues to show structural resilience and the ability to handle the headwinds posed by high interest rates, inflation and wider economic certainty.” See how JLL compares with other agencies with our On-Demand Rankings >> Photo © Jon Santa Cruz/Shutterstock