The North West has one of the best performing rental markets in the UK with demand and rents on the rise, making it an exciting time to invest in the region.
Rental demand has been increasing across the UK, particularly in central zones of major cities where demand has doubled, according to data from Zoopla. Rent increases have also hit a 13-year high, which is largely down to supply not keeping up with growing demand.
Across the UK, there are areas seeing particularly strong surges in rental growth. For example, the rental market is thriving in the North West of England, especially in Greater Manchester.
Figures from ARLA Propertymark revealed the North West is seeing the highest level of tenant demand. During October, an average of 163 new tenants in the region registered per branch. Overall, Propertymark members saw 71 new tenants registering per branch on average.
Branches in the North West recorded an average of 92 more new tenants than the UK average. This illustrates the extensive growth the region is seeing in its rental market, well above other areas of the nation.
Demand for more rentals in Manchester
A report on Manchester’s rental market in 2021 Q3 by urbanbubble revealed lettings in the central part of the city are breaking records, and there is still more room for growth. Over 2,750 lettings occurred during the third quarter. This is 10.3% higher than the same timeframe before the pandemic in 2019.
Since the beginning of 2020, over 9,200 new homes have been built in the area, and most of these developments are either at or nearing full capacity. At the time of the report, there were also just 427 apartments available for rent, which is the lowest number on record.
Since the loosening of COVID-19 lockdown restrictions, there has been growing demand for high-quality properties right in central city locations, particularly among young professionals.
Pent-up demand had been building throughout the successive lockdowns, and Manchester has been feeling the effects of that. The data from urbanbubble shows that demand is continuing to grow with supply unable to keep up with surging demand.
Thousands more homes needed across the North West
A major report by the Building Back Britain Commission revealed hundreds of thousands of new homes are needed across the North and Midlands. There is a projected annual shortfall of up to 67,000 homes in cities like Manchester, Liverpool, Birmingham and Bradford. This adds up to a need of 140,000 homes per year over the next two decades.
Manchester in particular requires the second largest rise in new-build homes. With the current housing assessment, 3,527 new properties are needed per year. This is expected to jump to 7,469 homes per year based on future growth. This report shows the number of high-quality property developments that are still needed in the growing city of Manchester.
With the population over the next few years expected to increase even more, additional housing will be needed in the years to come. To keep up with this growing demand, a number of exciting property developments are already being brought forward in the city and surrounding area.
As the property sector continues to boom, this further shows how it’s such an exciting time to invest in Manchester. It’s transformed into a thriving global city and will likely remain a leading place to live, work and invest in.
Salboy has a number of high-quality new-build developments across Greater Manchester. If you’re interested in investing in a new-build or off-plan property, send us a message online or call us on +44(0) 161 884 3183.