MIPIM UK: More homes needed despite growing pipeline
Housebuilding in Manchester is at its highest rate for six years with 9,000 new homes expected to complete by the end of 2018/19, however the city is still due to fall short of demand, according to data produced by the council.
Manchester City Council used the MIPIM UK conference taking place in London this week to stress that, with continued increase in population, coupled with years of under supply, the current building boom will fail to meet demand.
Manchester Place chief executive Paul Beardmore gave a presentation in which he said that the city would remain consistently under supplied by more than 2,000 units a year, with more than 1,000 of those needed in the city centre alone.
He said: “While we are currently seeing large scale residential development, primarily in the city centre, we are a long way from being at capacity.
“All the forward looking data indicates that Manchester will continue to have a shortfall of housing and we need to ensure a steady supply chain for decades to come to support continued economic growth.
“What we have at the moment is chronic under-supply and when the developments currently under construction come to market they will simply mop up this latent demand.”
Manchester Place is a collaboration between Manchester City Council and the Homes & Communities Agency. It was launched in July 2014 with the aim of creating a pipeline of development-ready sites to help the city meet its target of creating 55,000 new homes by 2027.
The data discussed at MIPIM UK showed that while entry-level stock could be absorbed by 2020, the need for mid-range and premium stock will continue to be un-met up to 2024 and beyond.
Beardmore said: “It is very clear both from the research and from seeing the market first hand that there is pent up demand from both owner occupiers looking for high quality homes in the city to purchase and from renters looking for a quality rental product.
“There is an opportunity to expand the city centre market into surrounding areas such as the Irk Valley, Holt Town and Lower Medlock to accommodate quality homes for sale and rent.”