Manchester and its rental property shortage

 

City centre living is quickly becoming the norm in a lot of places, as it is in Manchester. With the city’s population growing year on year and space and supply being very limited, let’s have a closer look at what the situation for Mancunian renters is actually like.

The MEN revealed that some estate agents claim that there are more than 2,000 potential renters to just 130 properties. This makes for a ratio of 15 prospective tenants for every single property.

The MEN research overall discovered the following trends:

  • It is increasingly difficult for renters to find the perfect property, with up to ten enquiries for every city centre flat.
  • Each apartment to rent is receiving 3 or 4 offers.
  • Some properties are let after just ONE hour.
  • Prices are rising by up to £75 a month in some city centre hot spots.

The market is becoming increasingly competitive due to the significant shift in interest of Generation Rent to live in Manchester.

Ben Garland, manager at Jordan Fishwick, says: “The market has definitely become busier and we have noticed that Manchester is becoming increasingly popular with clients from all corners of the globe.

“Generally we receive between 5 and 10 enquiries per property then receive 3 or 4 offers on each of our properties on average.”

Andrew Seldon, managing director at Thornley Groves, advises prospective tenants to act quickly, “To rent they have to close on the day, as we would have around 4 or 5 people to view the property on the day.”

James Favas from Purplebricks even went as far as to say: “I have dealt with properties before in the city which have been on the market for only 1 hour and been let.”

https://www.buyassociation.co.uk/2016/09/29/manchester-leads-way-property-investment/

This is however not all good news, as there is too much interest to find the right fit for everyone. Demand is seemingly outgrowing supply.

Andrew said: ” We haven’t got any big problems, out major concern ts that we just don’t have enough stock. If we had more stock, we would sell more properties.”

James echoed these views: “Due to the variety of the people from all over the world that the city attracts, I’d say tenants outnumber the available stock.”

This lack in appropriate accommodation leads to only one thing: a rise in prices.

Rents in Manchester have continued to rise over the last 12 months. This change has been felt, however, most significantly in the city centre.

James said: “The market has changed massively in the last decade. Prices can range from anywhere between £750 – £2,500 a month. In terms of inflation, I would say the prices are going up around £50-£75 a month.”

Glynn Rudge, senior branch manager at Reeds Rains, said: “The old stories from 2005/2006 that Manchester was building more apartments than there was demand for is long, long forgotten.

“We can see that Manchester has a strong economy, helped with the relocation of the BBC and we are very positive about the future with the high speed rail links “shrinking” the distance to London.

“But the only way we can see Manchester City Centre being able to supply the apartments needed is for it to “grow” bigger, moving the city centre out towards those areas that were once considered on the periphery.”

When it comes to the question why people are now choosing Manchester as their favourite place to live, the answers are plenty.

The city has experienced an impressive regeneration over the last ten years, the Northern Powerhouseh is creating trust in and hope for England’s North and the city has seen a vast investment in technology and business.

Glynn Rudge, senior branch manager at Reeds Rains, said: “The old stories from 2005/2006 that Manchester was building more apartments than there was demand for is long, long forgotten.

“We can see that Manchester has a strong economy, helped with the relocation of the BBC and we are very positive about the future with the high speed rail links “shrinking” the distance to London.

“But the only way we can see Manchester City Centre being able to supply the apartments needed is for it to “grow” bigger, moving the city centre out towards those areas that were once considered on the periphery.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Northern powerhouse

Manchester and its rental property shortage

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.