'Market has tightened significantly': Property expert claims number of homes for rent in Leeds has fallen

The number of homes available to rent in Leeds fell by 55 per cent in the year to July, as stronger tenant demand rapidly absorbed stock across the city, according to global property advisor JLL.

The findings come as part of JLL’s latest Big Six Residential Development Report, which tracks Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester

The report found that, across all six cities, the number of homes available to let was 49 per cent lower in July than a year earlier.

Despite the sharp fall in availability, average rents for new-build apartments in Leeds remained unchanged over the past year.

JLL said heightened demand had so far absorbed stock that had built up earlier in the year, rather than feeding through into rental growth. However, with this stock now being rapidly absorbed, with JLL arguing that continued tenant demand could create greater upward pressure on rents during the remainder of 2026.

Tom McWilliams, head of UK development & regeneration at JLL said: “Leeds’ rental market has tightened significantly over the past year, with stronger tenant activity rapidly absorbing the stock that had built up. Although rents have remained flat so far, the 55 per cent fall in available homes means there is greater potential for upward pressure if demand continues at its current level.

“At the same time, the supply of new homes is being constrained by significant viability challenges. Higher financing and construction costs are making it increasingly difficult for developers to bring schemes forward, even where there is clear demand.”

JLL warned that the tightening rental market comes as viability challenges continue to restrict the development of new homes in Leeds. The city has around 12,200 build-to-rent homes operating or in development, with 43 per cent operational and 57 per cent in the pipeline.

Build-to-rent investment totalled £77m over the past year, 74 per cent below the five-year average. Almost all of this came from the funding of the first phase of Leeds Urban Village by Cole Waterhouse and Domis.

Meg Eglington, UK residential research associate at JLL, said:“Rental markets across our Big Six cities have become noticeably tighter over the past year. Tenant activity has been strong and available homes are being absorbed quickly, but so far that hasn't translated into significant rental growth because markets entered the year with relatively elevated levels of stock.

“The important question is what happens next. If demand remains at its current level while availability continues to fall, there will be considerably more scope for that pressure to feed through into rents during the second half of the year.”