Regional cities are enjoying a housebuilding boom (Gurpreet Narwan writes). The number of new developments has risen to a record, according to Deloitte’s latest crane survey, which found that 40 projects to build 17,000 homes were under way in Manchester, Leeds, Birmingham and Belfast.
Half of these were in Manchester, which recorded a 60 per cent increase in the number of homes under construction in urban areas, rising from almost 7,000 in 2016 to more than 11,000 in 2017.
Birmingham reported a 75 per cent increase and Leeds a rise of 156 per cent, but Belfast led the way, with a 221 per cent surge.
In total, there were 81 new developments across sectors including offices, hotels, shops and schools, as well as homes.
Office space, which is seen as an indicator of the health of the local economy, also grew. There were 16 new projects across the four cities in 2017. The biggest rise was in Leeds, where the volume of space under construction grew by 67 per cent, from 460,000 sq ft in 2016 to 770,000 sq ft last year.
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The results are in marked contrast with London, where new office development has fallen to its lowest level in more than three years. In November, Deloitte’s twice-yearly London office crane survey reported that construction had dropped by 9 per cent compared with six months ago.
Shaun Dawson, head of research in the Deloitte Real Estate Insight team, said the figures showed that “housing targets are being taken seriously and developers are striving to meet demand . . . The unparalleled scale and volume of development is backed by investor confidence, strong business communities and an influx of new talent. The demand for property, especially in the residential market, has never been more evident.”