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July 27 2022

‘No end in sight’ for Manchester’s supply and demand imbalance

July 27 2022

‘No end in sight’ for Manchester’s supply and demand imbalance

Author: Amber FurrCategory: UK Property
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It’s no secret that the performance of the UK property market is underpinned by the limited supply and increasing demand of available property.

Seeing consistent growth despite the increasing pressures on the cost of living, the prime rental market is continuing to defy economic conditions as pent up demand and urbanisation soars.

Showing no sign of slowing, Rightmove reported over 150 million monthly website visits last quarter, with an increase in searches for keywords such as co-working space, facilities, pets, outside space, and community.

 

Rents continue to break records in Manchester

Also known as the Capital of the North, the Northern Powerhouse, or more recently ‘Manc-hattan’ for its evolving skyline, Manchester is an established city attracting global investment.

Although the city’s strong track record has reigned for years, Urbanbubble reports ‘no end in sight’ for its supply and demand imbalance, alleviating the potential concerns of investors regarding oversupply.

Graph

(Urbanbubble, July 2022)

Urbanbubble Q2 2022 Manchester Report Summary:

  • Lettings numbers fell in Q2 due to the ongoing supply crisis, while rental values rose to record levels
  • There are just 664 homes available to rent in Manchester currently; compared to 1,628 this time last year; and 2,351 this time in 2020
  • Limited supply is driving rents up across all apartment types
  • Rents are up on two-bedroom apartments by 7.2% since Q1 2022; and by 25.5% since this time last year

 

Our own Manchester developments have seen exceptional levels of demand, with 97% occupancy across our four Affinity Living buildings despite disruption caused by the pandemic. This rental demand is also reflected in the completed developments within The Renaker Collection – Victoria Residence and Elizabeth Tower at Crown Street.

In Victoria Residence, 75% of tenants renewed their contracts after the first year. On average, these rents rose by 10% – a great return for investors. In sister building, Elizabeth Tower (completed April 2022), the average time to let each apartment has been just 3 weeks on the market.

What is attracting renters to Manchester?

Voted the Most Liveable City in the UK for the last 11 years in the Global Liveability Index, Manchester is a thriving hub for young professionals, post-graduates and creatives.

Not only is the city a Cultural Powerhouse for music, football, art, food, and nightlife, Manchester’s job market is thriving. With 80/100 of the FTSE 100 Top Companies located there, Manchester attracts a global talent pool of high earning young professionals – the target demographic of the Build to Rent sector.

Developing areas such as Ancoats, the Northern Quarter, Embankment West and Great Jackson Street will also continue to attract young professionals, couples, and families to live and work in the city. The first city centre primary school in 20 years was recently approved, as well as plans for a GP surgery and community parks.

JLL: ‘Cities with a village feel’

Post pandemic, JLL reported on a boost in demand for both rural living and urban areas. As a result, people are looking for ‘the best of both worlds’ – ‘cities with a village feel.’

“Having elements of a rural life in urban villages with a combination of green spaces, outdoor markets, shops, cafes and restaurants has been proven to enhance community cohesion and improve the wellbeing of those living there.”

JLL

Popular Manchester neighbourhoods such as the Northern Quarter and Ancoats bridge this gap in the market, offering city centre living in areas with a thriving, tightknit community of their own.

couples

Cutting Room Square, Ancoats

Current investment opportunities in Manchester

At 94% sold out in just 9 months, don’t miss out on your last chance to invest in Three60 – Manchester’s first cylindrical skyscraper. With seven sold out residential buildings in our Manchester portfolio, we are one step ahead in understanding the needs of the city’s rental market.

Keep a look out for an unmissable opportunity coming soon, in one of Manchester’s most high-demand new hotspots.

To find out more about investing in the Capital of the North, contact us and one of our property consultants will be in touch.

Current Investment Opportunities

Affinity Living
Lancaster Wharf
Prices from GBP 237,000

Over GBP 50 million worth of property sold since February 2022 launch

More Details