The JLL Big Six Residential Development Report monitors the sales, rentals, and build-to-rent sectors in Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester.
The rental market in these areas is grappling with a scarcity of available properties, although the gap between supply and demand slightly improved by the end of the year. Despite this, rental prices in new developments across the Big Six rose by 8.8% in the year leading up to December 2023, down from earlier double-digit increases.
Even with increased mortgage rates, demand for homes in the Big Six remained strong in the latter half of 2023. However, rising debt and living expenses meant that buyers had tighter budgets, resulting in a slowdown in annual price growth to 2.8% by December. Edinburgh and Glasgow saw the highest annual growth rates among the Big Six, more than doubling that of the other English cities.
In most cities, the premium new build market performed better, driven by a preference for quality and a continued desire for well-equipped, high-spec homes in central areas.
Regarding the build-to-rent sector, Birmingham and Manchester lead in terms of operational units. However, Scotland’s major cities are expected to experience the most significant proportional increase in stock. Edinburgh, with a pipeline almost five times the size of its operational stock, leads the way, closely followed by Glasgow.
You can check out the full report by clicking here.
