Published: 18th November 2022
A new report released by Urbanbubble makes interesting reading for investors looking to purchase buy-to-let property in Manchester and the surrounding areas. Despite the considerable number of new properties being built in the city (building work for approximately 5,500 new homes was started in Manchester in 2022), there is still a major structural undersupply of available property in the city, and it is this undersupply which is likely to dictate the upwards direction of rental incomes over the course of the next five years.
It is this lack of supply of rental properties in Manchester which is putting considerable upwards pressure on rents throughout the region at present. The report claims that over the course of the past 12 months, asking rents have increased by 15.8%, whilst achieved rents have increased by 19.5% for the same period. The report from Urbanbubble went on to state that over the course of Q3 2022, the number of available properties for rent in Manchester was just 360, the lowest figure on record.
These rental figures present an interesting and complex dynamic in the Manchester property market at present. Whilst wider macroeconomic factors are undoubtedly creating financial headwinds for property investors, the underlying structural undersupply of available rental stock means rents are likely to remain robust for investors in the medium to long term.