Build-to-Rent Boom Coming to Manchester
We all know that renting has become more and more popular in recent years. People are taking longer to get on the property ladder – in fact, many people don’t envisage owning a home until they are well into their thirties or forties. Young professionals are enjoying the convenience of moving between cities and hopping from rental to rental, while many people simply can’t afford to stump up the cash for a deposit, despite a range of recent Government schemes promising to help young buyers.
But what many people don’t know is that the Built-to-Rent revolution is arriving to transform the property market – and Manchester is one of its key locations.
Private Rented Schemes (PRS), also known as Build-to-Rent schemes, involve entire apartment blocks being constructed just for the rentals market.
In Manchester and Salford area, over 5,500 Build-to-Rent apartments are currently being constructed, according to a report by the British Property Federation and Savills. This provides the UK’s second-biggest commitment to the new rentals approach after London (and the biggest overall on a per-capita basis). That’s no surprise, given Manchester’s continuing popularity with the renting population and the chronic lack of supply in some parts of the city.
Some are hailing this as a revolution in renting – it is hoped that all this new property will ease housing shortages, provide greater long-term security for those tenants who want extended leases and improve the management of rental properties, where aspects such as communal areas are concerned. These apartment blocks will become small communities, in which like-minded people can meet and live side by side.
Those who own and invest in such schemes tend to be large companies, which are subject to greater scrutiny than private landlords, where the legalities of property renting are concerned. This could also be a bonus for tenants, who can perhaps expect a rising standard of living accommodation in the market.
But what else will this mean for the average buyer or renter? Well, it’s likely that the housing market will be turned on its head, with many more rental properties becoming available. Given the laws of supply and demand, this should have an impact on property rents: if more properties are available, then rents should stop increasing exponentially like they have in recent years.
It may all be swings and roundabouts, however, as the scrapping of tenants’ fees later this year may push up rents, to an extent. But this is all guesswork, of course – the real test will come when this influx of rental property hits the market in the coming years. As agents, it is our duty to watch these developments and react accordingly to ensure that we continue to please our clients. For the time being at
least, we’ll continue to see very strong competition in the rentals market – the best properties are snapped up in days or even hours, and would-be renters need to be quick off the mark to find the crash pads that they really want.
Are you looking for your perfect rental home? Then contact Julie Twist Properties today to find out what we have on offer.
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