HUGE DEMAND FOR RENTAL PROPERTIES
City centre living is now becoming the norm throughout the UK, and Manchester is no different. With the city’s population growing year on year and space and supply being very limited, rental properties in the city are hot property.
The MEN (Manchester Evening News) revealed that some estate agents figures show that there are only 130 properties available for more than 2,000 potential renters – this makes for a ratio of 15 prospective tenants for every single property, crazy statistics!
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 multiple offers in very short timescales.
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.”
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, our major concern is 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 of appropriate accommodation leads to only one thing – a rise in prices. Manchester rents 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.”
So why are so many people wanting to choose 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 Powerhouse is creating trust in and hope for England’s North and the city has seen a vast investment in technology and business. It is also becoming very trendy with it’s Northern Quarter attracting Tech start up Companies alongside fashion houses and artists – very Bohemian!