Leeds Property Market 2025

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Continuous Growth

According to a report by Savills, Leeds’ forecast gross value is expected to outperform the national averages over the next 10 years, with an impressive growth of 16%. This outlook underlines the city’s strong and resilient economy, which has shown no signs of slowing down even in the face of wider market challenges.

One of the most significant drivers of Leeds’ economic strength is its thriving healthcare sector. Employment within health and social care in the city has grown by 16% since 2019, more than double the UK’s average increase of 7%. This growth is not only providing stability but also creating new opportunities that ripple across the property market as professionals continue to move to the city for work.

Supporting this expansion is the launch of Nexus at the University of Leeds, which has been instrumental in fostering collaboration and innovation. Nexus is expected to attract more than 60 start-up businesses, positioning Leeds as a hub for talent and entrepreneurship. This growth will not only draw in fresh occupiers but will also help the city retain top talent, an essential factor in maintaining strong demand for housing.

At present, the Leeds property market still offers some of the lowest rents among the UK’s “Big Six” regional cities, making it an attractive option for tenants who want affordability in a vibrant location. However, as regeneration projects complete and new infrastructure comes online, the supply of Grade A space is expected to rise. This is likely to lead to higher rents as working professionals increasingly look for accommodation in and around the city centre.

The property market in Leeds has consistently performed within the UK’s top five cities for capital growth. Its position is further strengthened by one of the largest regeneration projects in Europe, which will create more than 35,000 jobs and double the size of the city centre. With demand set to rise, property prices are expected to follow suit, reinforcing Leeds’ status as a highly attractive location for investors.

Rising Prices

The housing market in Leeds continues to demonstrate steady growth. The average house price in August 2025 stood at £240,000, reflecting a 3.8% increase compared to the same time last year. Across Yorkshire and the Humber, average house prices reached £206,000 in July 2025, up from £198,000 a year earlier. This means Leeds now holds the third-highest average house price in the region, further underlining its strength relative to neighbouring markets.

Rental prices in Leeds remain robust. The average private rent currently stands at £1,089 per calendar month, a figure that has remained steady over the past year as the market balances strong demand with affordability constraints. In comparison, the regional average across Yorkshire and the Humber is £825, which highlights Leeds’ ability to deliver returns well above the regional norm.

Types of Buyers

For first-time buyers in Leeds, the average purchase price in August 2025 was £209,000, representing an increase of £8,000 compared with the previous year. Buyers using mortgages also saw strong price growth, with the average mortgage-backed purchase reaching £243,000, up from £234,000 last August. Cash buyers were equally active in the market, paying on average £230,000, compared with £222,000 in the same month last year.

This upward trend across all buyer types highlights a broad-based confidence in Leeds’ property market. Whether it be first-time buyers, mortgage-backed buyers, or cash purchasers, demand remains strong, reinforcing the city’s position as a resilient and rewarding investment destination.

Why Leeds Remains an Investment Hotspot

For investors, the Leeds property market presents a compelling blend of qualities that make it one of the UK’s most attractive destinations. The city has consistently demonstrated high capital growth prospects, regularly ranking among the top five cities in the UK for property appreciation. This track record of performance gives investors confidence that Leeds is not just a short-term opportunity but a market with enduring long-term value.

Strong rental demand further underpins the appeal of the Leeds property market. A young, growing population, coupled with a large student base drawn to the city’s universities, ensures a steady stream of tenants seeking accommodation. This demand has supported resilient rental yields, even as average prices have increased, making the city particularly attractive for buy-to-let investors.

Adding to this strength is the scale of ongoing regeneration. Leeds is currently undergoing some of the most ambitious infrastructure projects in Europe, which are set to reshape the city, attract new businesses, and create thousands of jobs. These developments will not only boost the local economy but also increase demand for housing across both the rental and sales markets.

The city’s resilience is also reflected in its diverse and expanding economy. Sectors such as healthcare, technology, and professional services are driving stable employment growth and attracting skilled workers. This economic strength provides a solid foundation for sustained housing demand, further reinforcing Leeds’ status as a safe and profitable choice for property investors.

*all data is from Office for National Statistics