Leeds recorded £281m of investment into its build-to-rent (BTR) sector in 2025, cementing its position as the UK’s third-largest regional market outside London.

According to JLL’s Big Six Residential Development Report 2026, the city’s performance was bolstered by record-breaking capital flows, with total investment volumes reaching their second-highest level on record—10% above the five-year average.

The year was headlined by Barings Real Estate’s £152m forward-funding deal with developer Glenbrook for a 618-home scheme on Kirkstall Road. The project, situated on the banks of the River Aire, includes a mix of apartments alongside co-working spaces and a residents' gym.

This activity helped the UK’s six largest regional cities—Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester—capture a record 46% of all multifamily BTR investment in 2025. Total investment across these hubs reached £1.1bn, a 21% increase on 2024.

A decade of transformation

The Leeds BTR market has undergone a significant shift over the last ten years. Approximately £1.3bn has been invested in the last five years alone, compared to less than £400m in the preceding five-year period.

The city currently has 11,300 homes either operational or in development. A further 900 homes are expected to complete in 2026, including:

Triangle Yard (Ila and Ridgeback)

Whitehall Riverside (Legal & General)

Tom McWilliams, Head of Leeds and the North East at JLL, said: "Leeds has quietly built the third largest BTR market outside London. The record levels of capital flowing into the city validate everything we've been saying about its potential. The combination of affordability and a young, mobile workforce creates exactly the rental demand profile that institutional investors look for."

Growth in single-family housing

The report also highlighted strength in the "single-family" rental sector. A £32m joint venture between Strata and Placefirst at Radial Park contributed to more than £100m invested across Yorkshire and the Humber in 2025—doubling the region’s total since 2019.

Karl Tomusk, Associate at JLL, noted that regional BTR has reached an "inflection point" as economic headwinds, such as high debt costs, eased throughout 2025.

"The Big Six captured a record share of investment because fundamentals remain strong," Tomusk said. "Their pipeline grew 16% while the UK's fell 7%, and all six cities are forecast to outperform UK-wide house price growth.

"But what's striking is the divergence: Birmingham building at scale, Manchester facing supply constraints, Scotland unlocking frozen investment. These are fundamentally different investment propositions within regional BTR, and that sophistication should attract more capital."