Manchester has been breaking records for its hot rental market, as young professionals continue to hone in on the area and agents are inundated with enquiries.
As of last week, there were just 427 flats available to rent in Manchester. This is a record low, according to research from Urbanbubble, as rental demand in the city and surrounding areas has gone through the roof.
The figure is despite around 9,200 new homes becoming available since the start of last year. The property management company’s data shows that most of these new developments are either full, or very soon will be. And there are plenty more new homes in the pipeline for the thriving city, with around 16,195 under construction as of Q3.
Quarter three of this year also saw new highs in the market. There were more than 2,750 lettings over the period, which is 10.3% up on Q3 2019, pre-pandemic. Rental prices are on the rise in the city, which continues to benefit from extensive regeneration. The average studio, says Urbanbubble, now rents for £756.90 per month.
Rental homes are being snapped up quickly by tenants, too. The average flat was on the market for 45 days in the three months to October.
Resilience and strength in Manchester
The report covers the city centre, as well as areas such as Salford and Trafford. It demonstrates how young people in particular, who still dominate the rental market despite rising ages overall, are being drawn to the north-west city. With strong employment prospects, a more affordable lifestyle than London and an array of great places to live, Manchester is one of the UK’s most attractive areas.
According to Ed Howe, research and insights manager at Urbanbubble, there is a “call to landlords” right now: “If you’ve got a spare room or apartment, stick it on.” He also says the report as a whole shows the resilience and strength of the area.
Manchester has been making headlines in other parts of the media for these qualities, too. In a survey of 27,000 city dwellers by Time Out earlier this year, Manchester was named the third best city in the world. It was voted top for creativity, community spirit, friendliness and nightlife. In the index, it’s the highest ranking city in the UK and is only behind San Francisco and Amsterdam in the world.
Great yields for landlords
Gemma Price, director of residential for Urbanbubble, adds that the demand is particularly high for top-quality properties. She says young professionals are more keen than ever to be in the city, while they also want more from their homes than ever.
She adds: “Our portfolios have gone from having some empty homes, to being fully occupied in a matter of months, leaving us with hundreds of customers looking for the types of homes we manage and let. We are crying out for landlords to bring their investments to us to benefit from our knowledge, obtained through this insights report, and ability to achieve great yields.”
Although house prices in the city are on the rise, house prices are still below the national average. With strong rental demand added to the mix, yield prospects in the area are still some of the highest in the country. Some recent research from Select Property pinpointed Manchester as one of the best places to invest in property. According to their research, average yields there are an impressive 6.14%.
BuyAssociation has a number of property investment opportunities available in Manchester and the surrounding area. Browse some of our properties here, or contact us to find out more.
