Manchester rents soar as supply hits new low
Developers have started building 5,545 new homes so far in 2022, the most in the city for a decade, but upward pressure on rents caused by a lack of available stock continues, according to research by Urbanbubble.
During the third quarter of 2022, the number of properties available to rent in Manchester hit its lowest rate on record, just 360, the report states.
The city’s lack of supply is causing rents to spiral. In the last year, rents in some areas of Manchester have risen by as much as 38%, according to Urbanbubble.
On average, rents in Manchester, Salford and Trafford have increased by 20% over the last year.
Constrained supply and rampant demand – Manchester’s population is predicted to increase by 30,000 over the next six years – means the cost of renting in the city is unlikely to come down significantly in the short term.
This dynamic could be compounded by the economic headwinds the development community is battling against, which could further slow delivery. A drop in the amount of build-to-rent homes coming forward over the next 18 months is also expected.
At present, the competition among renters to secure a flat in Manchester is so fierce that achieved rents exceeded advertised prices in Q3, Urbanbubble found.
“Over the last 12 months, while asking rents have increased by a significant 15.8%, achieved rents have increased by 19.5% [on average]” the report states.
The cost of renting a studio in Trafford has increased dramatically in recent months. Credit: Urbanbubble
One area that has seen considerable rental growth is Trafford, where more tenants are gravitating in search of cheaper homes.
“A studio apartment in Central Trafford now costs more to rent than a two-bed apartment in the same area did just four years ago,” the report states.
The cost of renting a studio in this area has risen by 12.3% since Q2 of this year and 24% year-on-year.
While renters start to look for cheaper homes further afield, city centre developers continue to endeavour to keep pace with rising demand.
The city’s residential pipeline has been bolstered significantly in recent months with several developments progressing.
Trilogy Real Estate and Hong Kong-based Peterson Group are bringing forward plans for 750 homes as part of a mixed-use redevelopment of the Great Northern Warehouse, while Oval Real Estate unveiled proposals for 367 homes as part of its Albert Bridge House scheme.
Meanwhile, Renaker has broken ground on its 1,900-home Trinity Islands project, Manchester’s largest single residential development. The developer also acquired the stalled Transition site from DeTrafford and is planning to enlarge earlier proposals for 400 homes.
You can find the full Manchester Monitor report on Urbanbubble’s website.
