• City centre apartment schemes in Leeds generally have high levels of occupancy. The properties managed by six major firms ofagents total 3153 apartments and these are more than 92% occupied. Only one scheme is entirely vacant. The rental market hasbeen strong during the recession.

• Sale values dipped from the fourth quarter of 2007 but stabilised during 2009.

• Rents have stayed at more or less the same level as they were in 2007, with some high quality, well-located schemes showingsome rental growth. Some building owners are letting apartments for the medium term with a view to later sale when values recover.

• Only two schemes are under construction and only five schemes, totalling around 600-700 flats, seem to have a chance ofdelivering within the next 5 years.

• More than 30 schemes with planning permission, totalling over 9,920 units, have stalled and seem unlikely to proceed inthe originally proposed form. Many more sites are still at pre-application stage and are even more unlikely to come to fruition inthe form originally indicated.

• Funding for large-scale apartment blocks is highly unlikely to return within 3 to 5 years. The viability of schemes is no longerunderpinned by off-plan sales. Once conditions do improve, we expect to see growing numbers of owner occupiers. Of thosebuying as investors, most will choose apartments with a tenant already in place.

• Land values are now much lower than the prices paid during the boom. This value gap has paralysed the development pipeline.

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