- A slowdown in the amount of build to rent apartments being built in Manchester is likely to push up rents in such developments.
- The new report from Urbanbubble shows how only 431 build to rent apartments will be built in Manchester this year.
- Tenants are having to turn to non-build to rent properties to live in, which is having the knock-on effect of increasing demand in this sector too.
A slowdown in the amount of build to rent apartments being built in Manchester is likely to push up rents in such developments, according to new research by Urbanbubble.
Build to rent apartments are popular with property investors and tenants alike. These purpose-built rental developments provide tenants with everything they need, are of excellent quality and are often in highly sought-after locations.
The new report from Urbanbubble shows how only 431 build to rent apartments will be built in Manchester this year, far below what’s needed to meet demand for tenants and people looking to invest in Manchester property of this type.
This will push up rental returns for those already lucky enough to have a build to rent property investment. The Urbanbubble report states: “With so few new schemes launching until the end of 2023, the market will likely reshuffle and stratify. But with many schemes nearing full occupancy, it is also likely that we will see rents increase.”
Boosting rental returns
There is a second impact of this lack of build to rent supply. Tenants are having to turn to non-build to rent properties to live in, which is having the knock-on effect of increasing demand in this sector too. According to the report, this is narrowing the rental gap between the build to rent and non-build to rent sectors.
In March 2022, the average Manchester build to rent monthly rental price was £1,432, which equates to a rise of 10.4% over the last year. And while this is a fantastic increase, the average monthly rent in Manchester’s non-build to rent sector grew even faster at 14.5% over the same period. Average monthly rents in this sector now sit at £1,300.
What is property investment?
Put simply, property investment is property purchased with the intention of generating financial returns for its buyer. These returns could be in the form of rental income through buy-to-let properties, house price growth through the future sale of the property or both. Property investments can be owned by individuals or organisations and can be short, long or medium term.
Get in touch
To find out what opportunities are available to invest in Manchester property – whether that’s in the build to rent sector or not – contact the Manchester property experts at North Property Group now.
North Property Group has been named as a finalist in this year’s Yorkshire Business of the Year Awards, hosted by The Business Desk.
Cities such as Manchester, Leeds, and Liverpool are not only cultural and historical gems but also burgeoning property investment hotspots.
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