The Leeds city centre residential property market has seen a surge in activity during the first two months of 2026, with sales doubling year-on-year, according to Zenko City Living.
Data reveals that homes sold by Zenko in 2025 achieved an average price of £235,689, outperforming the wider Leeds city centre average of £164,911 by more than £70,000. This growth follows The Sunday Times recently naming Leeds city centre as the best place for young people to live in the UK.
A notable shift in the market is the rise of first-time buyers, who now make up 62% of viewers, compared to 50% in January 2025. While many rely on increasingly competitive mortgage rates, there has been a marked increase in first-time buyers purchasing with full cash support from parents.
Tobias Duczenko, Managing Director at Zenko City Living, said:
“The city centre residential market behaves very differently to housing markets in the suburbs, but many of the unique challenges we’ve faced in recent years are now subsiding. Lots of developments in Leeds have now benefitted from cladding remediation and news that ground rents will be capped at £250 per year, as part of a shake-up of the leasehold system, is having a positive impact.”
The lettings sector is also undergoing significant change ahead of the Renters’ Rights Act, which comes into effect on 1st May 2026. The new laws will abolish Section 21 ‘no-fault’ evictions, ban rental bidding wars, and introduce indefinite periodic tenancies. Zenko reports a spike in landlords seeking professional management to ensure compliance with these legislative shifts.
On the topic of rental management, Tobias Duczenko added:
“Significantly, we refuse to charge landlord clients commission on maintenance works we organise on their behalf. Regrettably, and unacceptably in our view, it has become increasingly common for agents to charge their landlords an additional commission… This can often be 15% and some agents in Leeds are charging 20%!”
Tenant demand remains high, with two-bedroom city centre apartments typically renting for just over £1,100 per month. Zenko maintains that there is still “headroom” for both capital values and rental growth as the city continues to expand.
