The Property Supply in Manchester is Running Low
Across the UK, the gap between levels of housing market supply and demand has been at its widest in 10 years. The available supply of Manchester rental market property is now fewer than 500 for the first time ever, according to reports from Urbanbubble.
The property manager found that there are now only 427 apartments currently available for rent in the city, which it says is the lowest number on record.
Covering Ancoats, Hulme, Ardwick, Strangeways, Central Salford, Old Trafford, and Salford Quays, the report found that 9,200 homes were built in the Manchester rental market since the start of 2020, with most now at full occupancy.
In Q3 of 2021 alone, over 2,750 lettings occurred in Manchester, a significant 10.3% higher than Q3 2019.
This dwindling supply of rental property comes after a continued hike in rent prices in the area. The same report finds that the average rent for studio and two-bedroom apartments has increased by 6% in the last three months.
The percentage increase was even higher in build-to-rent schemes, where three-bedroom apartments saw rental values rise by 14%.
With most of the Manchester rental market appetite focused on the city centre, Urbanbubble claims, the average time for a rental apartment to spend on the market is now just 45 days.
The report has been welcomed by many investors in the Manchester rental market, with over 16,000 apartments under construction in the city and a further 1,700 awaiting planning permission.
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Boom Expected in Manchester City Centre Rental Market
For those in the know, the report from Urbanbubble comes as no surprise.
Over the last few years, the rental market in Manchester has seen a significant boom, with more people than ever eager to live in the hustle and bustle of Manchester city centre.
In fact, a report from Zoopla in 2020 found that property demand in the rental market in Manchester outweighed available supply by 5:1.
This has likely been propelled by an ever-expanding population of young people.
Since 1991, the Manchester city population has increased by almost 30%, according to the Manchester Evening News. The population now sits at over half a million people.
Around 37% of this population are aged 18-34, placing Manchester as one of the youngest UK cities.
This is significant for the local property market, particularly in the city centre, as young people are more likely to rent than other age groups.
According to Zoopla, average rental prices in Manchester city centre now sit at £1,505 PCM, which is almost £500 higher than the UK average.
Meanwhile, the average rent in Manchester is slightly below this figure at £1,453.
This means that the average Manchester rental yield is currently 8.55% gross, over double the UK average!
As a result of continued market interest from young people in the Manchester city centre rental market, Manchester property prices have seen a significant rise.
The average property price in Manchester is currently £203,835, according to the latest Land Registry data. This is 5.70% higher than 12 months ago and a whopping 314.65% increase over 20 years – the highest out of any major UK city.
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Disclaimer: This content was originally written in October 2021. By the time you read it, some of the statistics used may have changed.
For the latest on the UK property market in 2023, take a look at our updated investment guides.