Article Summary

Last month, we covered a few of the upcoming developments to look out for in Leeds, but it goes without saying that there are also several regeneration projects in the Northern city.

Here, we will cover more of the developments coming up in the West Yorkshire powerhouse that investors, or even visitors, should look out for when they are in the area. The city has been on an upward economic trend in the past few years, with the supply of properties struggling to meet the demand that the influx of residents in the city is showing.

By 2022, the population had grown by 8.1% since the 2011 census, which is significantly higher growth than for the rest of the Yorkshire and the Humber region, which was 3.7% for the same time period. It is projected that, by 2043, the population of Leeds will be 842,115, a growth of more than 30,000.

The benefits of regeneration projects in the North

Regenerations essentially make use of areas that are misused or not being utilised to their full potential. With the growing population in the UK and specifically the North of England, the demand for properties continues to increase and more of these vacant areas are being regenerated into residential developments, shops and restaurants.

One of the main positives of regeneration projects is often the positive environmental impact it has, as several projects get rid of derelict land and create more green space, cycling lanes and walkways. Decades ago, the North of the UK was full of wasted space, some abandoned industrial areas and a lot of wasted potential for economic growth, but now the potential has been realised and the demand for property is higher than ever.

In addition to this, regenerations create more job opportunities as office spaces can be created, in addition to the residential and social spaces that are often built. Regenerations makes use of space, providing housing to try to reach the ever-growing demand in the region. Nearby cities such as Manchester have followed suit, with several regeneration projects underway.

South Bank Leeds

South Bank Leeds is a regeneration project that has the goal of doubling the size of Leeds city centre. The project focuses on the land south of the River Aire, it is a historic area which contains echoes of the city’s industrial past, but the land is not being put to good use.

Essentially, this project will transform the ex-industrial area south of the River Aire, which is a 253-hectare space in the city. The goal is to turn it into a globally distinctive destination for living, learning, creativity, leisure and investment.

The Holbeck industrial area in particular used to be a strong vibrant community in the 19th century, and the Leeds South Bank development project aims to reconnect these historic suburbs with Leeds City Centre once again to bring back that feeling of togetherness to this area of the city.

It is set to be a landmark project for the area, with the initiative expected to cost in the region £500m is expected to double the size of Leeds city centre. It is estimated that 8,000 new homes and 35,000 new jobs will be created as a result of this regeneration, therefore further enhancing Leeds’s reputation one of the most desirable UK cities to live in.

A few of the initiatives that are to come at this development are:

Holbeck Portfolio Sites – The Commercial Estate Group have acquired Holbeck Portfolio Sites, and have proposals for a mixed-use development at this key location. Proposals include the creation of new housing developments, including apartments, as well as offices and commercial space.

The Historic Hunslet and Victoria Mills – This is a multi-storey complex of red brick mill buildings, one of the last and largest of Leeds’ former flax-spinning mills. Conversion work is underway as part of the Victoria Riverside development in Leeds, not to be confused with the Victoria Riverside regeneration in Manchester. The scheme will comprise of 350 apartments featuring a mix of one, two and three-bedroom units with scenic views of the Leeds skyline.

Tower Works – Being one of Leeds’ most significant heritage sites, Tower Works is set to be host to two new residential buildings providing one, two and three-bedroom apartments to rent in addition to office space.

Leeds Dock – This is a major part of Leeds’s development and regeneration, having been allocated a significant amount for investment. A plethora of media companies including Sky among other creative, digital businesses, are already located in the area. Furthermore, development plans include improving the retail and leisure offerings in the area.

Wellington Place Financial District plans

Plans for 9 Wellington Place have been given the green light by Leeds City Council.

The announcement comes as good news to the Leeds City Council after they had dubbed the Wellington Place development as a ‘jewel in Leeds’s crown’ during a pre-application meeting last year.

The latest addition to the MEPC developed urban quarter will provide 176,413 sq. ft of office and 6,851 sq. ft of ground floor retail and leisure space. Located just north of River Aire, the development is nearby a variety of shops, cafes and restaurants in the city centre.

Alongside 11 and 12 Wellington Place, this new building is set to take its place as part of the Wellington Place Financial District Plans.

Paul Pavia, commercial director at MEPC, said: “We are delighted that Leeds City Council has approved the 9 Wellington Place development…Alongside 11 and 12 Wellington Place, it will be one of the most sustainable buildings in the UK, with its carbon emissions rate set to be 35% less than the standard building regulations target emissions rate, and an additional 15% less than the local planning requirement.”

“We’ve been seeing high levels of demand for top-quality office space that puts sustainability at its heart, so are very glad to be able to meet the needs of the region’s business community by delivering 9 Wellington Place.”

This sustainable new development helps to re-enforce the main message behind this regeneration: an increase sustainability and carbon-friendly methods. This environmentally friendly approach to Wellington Place is a prime example of pioneering real estate, with sustainable method being executed to construct a building that will have incredibly low carbon emission rates. It is a great example of how a regeneration can help to improve the carbon footprint of a city as big and populous as Leeds is.

Yorkshire Post Site

Plans have been put forward for the former Yorkshire Post site in Leeds including a brand new 40-storey tower. On behalf of Urbanite, DLA Architecture and planning consultant Quod have proposed a new planning application for the renowned area. The new proposals consist of three mixed residential towers, with one being a 42-storey purpose-built student accommodation tower comprising 1,125 student beds as well as 18,500 sq. ft of additional facilities.

The second building is set to be 32 storeys, comprising of 638 student bedrooms, spa/health facilities, and well-being suite for students along with further ancillary space of 21,500 sq. ft. Both will consist of a mix of cluster apartments and studios.

Thirdly and finally, this building will stand at 25 storeys, providing approximately 348 one-, two- and three-bedroom apartments, featuring a landscaped residents podium terrace that takes advantage of breath-taking south facing riverside views along with an impressive roof top external amenity terrace area. The scheme also includes a landscaped public realm, which would take almost 62 per cent of the site area and include the completion of a new public space, Headline Square.

These new buildings are imperative in satisfying the ever-growing population in the city, with a particular focus on students. More students, locally and internationally, are choosing to come to one of Leeds’s prestigious Universities to further their education, which in turn will boost the city’s economy and highlights the desirability of people across a range of ages to move here.

Daniel Newett of Urbanite commented: “We are delighted to reach this landmark with a scheme worthy of this important strategic site. The team has helped us to arrive at a viable and deliverable scheme that will regenerate a key strategic gateway in the West End of Leeds.  The plans deliver against much needed mixed tenure housing with fantastic public realm that is both sustainable and adaptable in the future.”

Sue Sparling, director at DLA Architecture, added: “Our design narrative embodies the former uses of the site, from Woollen Mill to Paper Mill, and embraces the local characteristics of the surrounding conservation area through form, materials and tone to create a landmark scheme that will contribute to this important gateway to the city.”

Our Headline Project in Leeds – Phoenix

These regenerations feature a mixture of new-build residential and office spaces. It presents an opportunity for investors to buy property in the city as it continues its upwards trajectory. With the investment opportunity presenting itself to bring in high yields and with a high tenancy demand, NPG has one of the headline properties of the Leeds skyline coming your way.

The crème de la crème of luxury living in Leeds city centre, Phoenix is our headline development in the West Yorkshire city. A 367 unit, £85m GDV, high specification development, Phoenix is a highly sought after property in a desirable location, with high rental yields and a high number of amenities.

Set across two blocks, A & B, NPG successfully secured the exclusive instruction to sell Block B – a £40m GDV – on a fractional, off-plan, plot sales basis. This 21 storey, landmark tower, in Leeds City Centre.

Set for completion in 2023, Phoenix will also be the third tallest residential building in Leeds, leaving its mark on the Leeds skyline for good.

Conclusion

The increasing amount of regeneration projects provides an opportunity for new and existing investors to diversify and grow their portfolios by exploring new markets. Investors can take advantage of these opportunities by capitalising on this potential while prices are lower than normal.

Investing at the early stages of a long-term venture offers great potential for an increase in property values and solid rental returns.

Leeds is an attractive city for investors to consider as the area of their next property investment, as one of the leading northern cities. The area has seen extremely strong year-on-year growth in property prices. Once regeneration plans near completion, property prices are expected to continue rising, as more job opportunities are created.

It goes without saying that there are a lot more projects in the Leeds area, though we will talk about them another time so stay tuned for more information on these.

To find out which property investment opportunities are available on the Leeds market now, or to learn more about how property investment works, get in touch with the experts at North Property Group today.