Manchester is a city that has a high demand for rental accommodation. The recent lockdown and shortage of space has made a number of properties available for rent. Many renters are choosing to move within a mile of their previous homes. This has resulted in a rise in sales figures.
Supply crisis of Manchester Letting Agents
Manchester letting agents are reporting a shortage of properties to let. Despite recent residential development, the housing market in Manchester remains under supply. This is affecting the number of lets and, as a result, the market is experiencing a supply crisis. As of 2021, there were 1,526 fewer homes available than in the previous year. This shortage is having a detrimental effect on the rental market in the city, and the number of homes due to be completed is expected to fall further.
One solution to this problem is to build more market rate housing in Manchester. This would free up affordable social housing and provide more aspirational homes. However, Manchester still had more social housing than other cities, and the proportion of social housing in the city was higher than other similar cities. While more homes were needed, the city did not want to increase the number of social properties in the city. This theory, if it were implemented, would ease the housing shortage.
In 2015-16, only 290 new homes were built in Manchester. It is estimated that there were around 218,500 existing dwellings in the city. However, the population of Manchester has increased by almost ten thousand in the same period, which means that the city does not have enough new houses to provide housing for all its residents. This means that Manchester letting agents are facing a serious shortage of properties.
The lack of affordable housing in Manchester is also causing landlords to raise rents. In the past five years, the rent for a two-bedroom apartment in Manchester increased by 26%. Moreover, some housing in Manchester is not maintained well. Because of this, tenants are afraid of pressing landlords for repairs. They do not want to risk being blacklisted and left homeless.
Despite this, the market in Manchester has become extremely competitive. Prices in the city centre and Salford Quay area are sky-high. Agents report a sensational January. New buyer registrations are running at around 100 a week. Moreover, agents report that the number of sales in January has increased from 10 to 45, and long-stalled schemes are resuming their course.
Demand for more space from Manchester letting Agents
With demand for rental properties skyrocketing, Manchester letting agents are facing a supply crisis. The city has 1,526 fewer empty homes than the same time last year, and there are fewer units available. This is likely to limit the number of deals completed by letting agents. While this is a negative for landlords, it is positive for tenants.
The lockdown in Manchester a few years ago has pushed many people to look for more space, so Manchester letting agents are seeing more demand for properties with four or five bedrooms. People also prefer properties with links to the countryside and the Peak District, and proximity to good schools is a top consideration.
In a recent survey by Time Out, Manchester was voted the world’s third best city. It was rated highly for community spirit, friendliness, and nightlife. This makes Manchester the highest ranking city in the UK, and third in the world, behind Amsterdam and San Francisco. According to Gemma Price, director of Manchester letting agents Blackstone Estate Agents, demand for high-quality properties is especially high.
Manchester letting agents are also seeing a rise in activity in office leasing. As demand increases, properties get snapped up quickly. This means that it is important to look for a property as soon as possible. If you’re looking to rent a property in Manchester, you can search online or ring the letting agents directly. These agents will be able to add you to their database and notify you when a suitable property becomes available.
The property market in Manchester has a strong start to 2021, and is on track for a healthy year. According to the Alliance City Living quarterly market report, there are fewer vacant properties and high asking rents. This is encouraging news for homebuyers and investors. The demand for residential properties in Manchester will remain healthy into 2022. If you’re in the market for a new property, Manchester is the perfect place to consider moving to.
There are many factors contributing to this demand for more residential space in the city. The government’s 95% mortgage scheme has encouraged more people to purchase a home. Additionally, the new school year and the promise of a fresh start in 2022 are also likely to spark people to move.
Increased sales figures of Manchester letting agents
In a busy real estate market, Manchester Estate Agents are seeing increased sales figures. One firm, Anthony Realty Partners, is ‘inundated’ with prospective customers each time a new rental property is on the market. In the last year, sales have increased by over 17 per cent. This is an impressive increase considering that the city was hit by the flu season and many city workers have moved back home. Additionally, a growing number of people are moving to Manchester from the Home Counties and London.
The increase in new instructions is a reflection of a slow but steady increase in the number of listings that are showing as sold. According to figures from TwentyCi, the number of properties listed in the UK has increased by 7.3% month-on-month. However, most of the properties are in the south east of England. However, Yorkshire and the Humber region has seen a 7.3% increase in new instructions month-on-month.
Final Thoughts
The coronavirus pandemic is impacting Manchester letting agents in two ways. One of these is through increased demand for rental properties. Another effect is a reduction in rental income. With many tenants struggling to make ends meet, rent arrears are increasing. This has also led to new concerns around overcrowding, housing displacement and evictions.
