Big Six Residential Development Report, Winter 2022/23
The JLL Big Six Residential Report compares activity, prices, and rents across six UK cities outside London: Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester. This report incorporates data from the JLL UK Cities index, comparing changes in prices and rents across mainstream and prime developments in each city.
All of our Big Six cities recorded growth in prices and rents in the year to December 2022. But volatility in the mortgage market and more challenging economic conditions in H2 2022 did impact the sales market in the latter part of the year, with growth in prices plateauing between June and December last year in some city markets.
The end of Help to Buy, alongside rising mortgage rates, mean a proportion of prospective buyers, particularly first time homeowners, have delayed their decision to purchase and remained in rented for longer. This has added further pressure on an already squeezed rental market. Resulting in rents rising 15.8%, on average, across our Big Six cities in 2022.
Higher energy bills have brought the energy efficiency of our homes into sharp focus. This has benefitted the new homes market, with newly built properties offering greater energy efficiency and lower bills than older properties.
JLL analysis of Energy Performance Certificate (EPC) data shows city centre markets are more likely to have higher EPC ratings (A, B and C) than suburban or rural areas. There are 'green' clusters of A and B rated properties in areas where we have seen new development in each city.