The UK’s biggest regional cities are reporting record levels of construction activity as developers’ confidence for city centre residential development remains strong.

Belfast, Birmingham, Leeds and Manchester have all seen sustained or increased level of development across a range of sectors including offices, residential, hotels and retail, according to the latest Deloitte crane survey, which monitors ongoing construction.

But Simon Bedford, partner at Deloitte Real Estate, said residential development in particular was booming. “The surveyed cities have shown a marked increase in housing development, in some cases doubling activity from the previous year,” he said.

There are almost 17,000 homes currently under construction in the four cities surveyed.

In Birmingham, 13 housing schemes started construction which will add 2,500 homes to the city centre this year alone. Meanwhile, the amount of office space being built in the city was more than 1m sq ft for the second consecutive year.

In Manchester city centre, 20 new residential schemes have started in the last 12 months, exceeding 2008 levels for the second year running. In total, there are 11,135 homes under construction, almost 60pc more than at the same time last year, and six of the schemes will exceed 25 storeys on completion.

Similarly, in Leeds the number of residential units under construction across the city centre is at its highest in a decade – 1,586 units across five development sites, a 156pc jump on the same time last year.

It is hotels which dominate Belfast’s construction activity, with more than 1,000 new rooms currently being built and all due to complete this year.

Mr Bedford added: “The results of our crane surveys reflect the growth and resurgence in the regions, surpassing last year’s record-breaking figures. The demand for property, particularly in the residential market, has never been more evident.”

Source: The Telegraph