City centre oversupply ends?

Property Hawk has reported over the last year about the over supply of new build city centre apartments that sprung up during the speculative housing boom of the last decade.

However, reports about Leeds in the FT seem to suggest that this over supply may be coming to an end.

According to research done by property sales companies Knight Frank, Morgans City Living, Savills, King Sturge and Allsop, in conjunction with the University of Leeds, the oversupply problem is a thing of the past and city-centre apartment schemes in Leeds have high levels of occupancy. The number of properties managed by six large agencies in the city total 3,153 apartments and these are 92 per cent occupied. Only one scheme is entirely vacant and the rental market has remained strong during the recession.

Rents hold up

One thing that has struck me during the downturn is how well city centre rents have held up. With the oversupply & low interest rates I had expected rents to fall like a stone. However, clearly demand from a growing pool of 20 something renters who are genuinely sold on the city living concepts has kept rents high.

If you are going for a city apartment, my advice would be to go for a conversion not new and also a small not a mega block where competition from other landlords is greatest.

Leeds latest offerings

We recently reported on the activities of Tom Bloxham. Tom's company Urban Splash is in the middle of redeveloping one of Leeds ugliest housing estates into a space busting experience, with studios starting at £83,000. The first phase is sold out although..........don't believe all that hype. Sold out could equally mean that some apartments have been sold back to themselves to rent out; not necessarily that their is massive demand for the units.

The second phase of the development "Parade" is now available. More details from Urban Splashes' website.

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