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Panoramic aerial view of Leeds city skyline with Leeds City Station, railway tracks, and high-rises.

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Leeds Crane Survey 2026

Building resilience amidst uncertainty

Against a backdrop of continued global and national uncertainties, this year has seen Leeds strategically position itself for a new era of growth and international prominence. Driven by Government support, the ongoing West Yorkshire Devolution, and a new Economic Vision for the city, Leeds looks set to capitalise on new funding mechanisms and a renewed commitment to regional development. Coupled with its burgeoning status as a hub for digital, AI, and health innovation, and ambitious plans for enhanced connectivity and strategic regeneration, the city is clearly demonstrating its intent for innovative, inclusive, and internationally attractive growth.

Market summary

Leeds saw 8 new starts in 2025, compared to 11 in the previous year; however, the total quantum of new student and residential development has increased. The 2026 Leeds Crane Survey shows 896 new student beds and 2,064 new homes have started on site, up from 487 student beds and 1,832 homes in the previous year. New office construction remains slow, with only 25,200 sq. ft. starting on site in 2025, a 49 per cent decrease on the previous years’ figures.

Delivery also continues on a number of large-scale regeneration projects in the City Core, and emerging peripheral neighbourhoods in the South Bank and Northeast Fringe. It has also continued to diversify the city centre offer, through the continued migration of purpose-built student accommodation into the City Core. Significant transport interventions have also maintained pace both in the city centre, and across the region more widely, through the Sustainable Travel Gateway at Leeds Station, and wider TransPennine Route Upgrade, seeking to improve connectivity into the city.

Not unlike recent years, 2025 has been defined by persistent global and national uncertainties that have impacted development and contributed to the reduced number of new starts across the survey area. Developers and investors have needed to adopt robust risk management strategies to cope with fluctuating trade tariffs, geopolitical instability, regulatory changes, fast technological changes, increasing construction costs, including ongoing supply chain and labour shortages.

However, despite the macro instability, Leeds continues to show strength as an economy. The city is forecasted to see annual GVA growth of 1.7 per cent (2025-2028), which outpaces both the UK (1.6 per cent) and Yorkshire and the Humber (1.5 per cent) averages. We expect that easing interest rates and increased Government support for regional growth will further assist in boosting market activity and developer confidence in 2026, with 36 per cent of developers already noting that they are more likely to break ground on projects in 2026 compared to 2025.

The market challenges seen in 2025 further represents a 'new normal' of continuous change. Therefore, to sustain Leeds’s regeneration and economic growth, businesses must embed agility and resilience into their core strategies, fostering adaptable business models and adopting innovative technologies to navigate global changes and market demands. This approach will enable Leeds to mitigate future disruptions and capitalise on emerging opportunities, securing its reputation as a dynamic investment hub.

Key findings

The 2026 Leeds Crane Survey reveals a tale of two sectors, with residential and student accommodation development remaining strong amidst a broader recalibration in the city's construction landscape.

Eight new projects commenced construction in 2025 across all sectors, the lowest number since 2013. Despite this, the quantum of new development across the residential sector has increased by 12%, and student accommodation by 84%, since last year’s Crane Survey.

Residential activity remains robust. This is highlighted by the 2,064 homes started across three new residential schemes, and 1,914 student bedspaces completed in 2025 – the third highest figure since records began. This sustained momentum underscores Leeds's attractiveness for city centre living.

However, the dynamism in residential contrasts with other sectors, in which new construction starts have slowed. Of the eight new projects underway, seven are dedicated to residential or student housing, with only one new office scheme breaking ground.

20 schemes are currently under construction across the city, comprising over 250,000 sq. ft. of office space, over 1,400 student beds, and a record-breaking level of homes under construction at over 5,900 homes.

Locationally, the South Bank continues to see most activity, with 30% of all schemes under construction located in this fast-developing area.

new starts. Below the Leeds Crane Survey average of 14.

60%

of schemes under construction are residential, comprising a record-breaking 5,970 homes.

1,914

student bedspaces completed in 2025

c.260,000sq.ft.

of office space under construction

education completions in 2025

sites under construction and 15 completions.

Residential & Student Accommodation

Consistent delivery of approximately 1,500 homes which has remained so since 2022 after a steady increase in the 2010s.
4,185 units under construction, with 72% of these being build to rent.
Student accommodation remains a resilient sector, with 1,622 beds completed in 2024, reflecting continued demand driven by a large international student population and the appeal of purpose-built accommodation in central locations.
A healthy three new student residential schemes follows two bumper years of delivery, whilst new activity on five residential schemes keeps pace with the 5.5 Crane Survey average.

Office, Research and Education

100% of new office space currently under construction is located in the City Core and South Bank, with the latter solidifying its position as a major business destination, attracting businesses-seeking modern, sustainable developments.
While 2023 saw a notable amount of new education space delivered (197,462 sq ft), 2024 witnessed no completions or new starts. However, projects like the Leeds City College Mabgate Campus and the Arts University Extension, totalling 83,562 sq ft, remain under construction, indicating continued investment in the sector despite financial challenges.
Leeds saw only two new office developments start construction in 2024, below the five-year average of 2.8 new starts.

Retail, Leisure and Hotel

After minimal new space delivered in 2023 largely consisting of ground floor retail units, Leeds saw 82,103 sq ft of retail and leisure space completed in 2024, driven by projects like the new Flannels flagship store on Briggate, indicating a potential resurgence in the sector.
The completion of the Sovereign Square Hyatt Hotel in 2024, which added 331 new beds, marked a return to activity after no new hotel openings in 2022 and 2023. However, with a modest pipeline of 80 new rooms projected for completion in 2025, the sector's recovery appears cautious.
The success of experiential retail offerings like the Flannels store and pop-up events in City Square suggests a shift towards re-imagining retail spaces, focusing on quality and experience rather than simply increasing square footage.

Our thinking

Analysis 1

Devolution dividend: National support for regional growth

The November 2025 Government Budget is amongst the most significant in a decade, and it is impossible to ignore its support for regional growth. For Leeds in particular, this Budget signalled a potential multi-decade commitment to development.

Bridgewater Place and Leeds City Centre aerial view at sunset. Yorkshire Northern England United Kingdom.

Analysis 2

Leeds’s digital goldmine: AI, digital, health Innovations

Leeds is actively fostering innovation, establishing its position as a national and increasingly international hub for digital, AI, and health innovation, with the city’s tech sector is growing 125 per cent faster than the UK average.

Wide Angle View of Leeds City Centre, West Yorkshire - Aerial Photo

Analysis 3

Global gateway: Enhancing Leeds’s international attractiveness

Leeds has a strong ambition to elevate its standing on a global stage, enhancing its reputation as an international city anchored by a wealth of culture, sport and events.

Methodology

Why?

A report that measures the developments taking place across Leeds city centre and their impact. Property types include residential, office, hotel, retail and leisure, student accommodation, education and research facilities, healthcare and public realm.

Where?

Our Crane Survey research area covers Leeds City Centre and its immediately adjacent areas.

What?

Developers building new schemes or undertaking significant refurbishments exceeding any of the following sizes:
office – 10,000 sq. ft.;
retail and leisure – 10,000 sq. ft;
residential property – 25 units;
education, healthcare and research – 10,000 sq. ft.;
hotel – 35 rooms.

When?

Data for the Crane Survey was recorded between 2 January 2025 and 2 January 2026.

How?

The local Deloitte Infrastructure and Real Estate team has monitored construction activity and planning permissions granted, supplemented by rigorous field research. This research has been verified by industry contacts and in-house research teams.

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Leeds Crane Survey 2026