Greater Manchester leading the way in build-to-rent boom
In relation to construction projects, the strength of a city’s economy is determined by its crane count. London has led the way for several years in the crane count, but Manchester in second place is getting closer. Now, Greater Manchester is stealing a march on Greater London in another area: the build-to-rent housing sector.
In the United Kingdom, more than half of the country’s build-to-rent homes are in Greater London. There are 38,648 such properties in and around the capital city. Outside of Greater London, the total is 31,176. In the last year, according to British Property Federation figures, 10,244 build-to-rent homes are under construction outside Greater London.
In and around London, 6,262 build-to-rent properties are under construction. Of the 10,244 properties that are under construction outside the capital city, over 5,500 of them are in Greater Manchester. Primarily in Manchester and Salford. With Greater Manchester set to see improved rail access (via Northern Hub and HS2), and the recent MediaCityUK development, the conurbation has become a popular choice for professionals. Twenty-four of the developments will deliver more than 500 new homes.
Build-to-rent is not a new sector. In fact, this kind of tenure dates from the 1920s and the 1930s. Back then, insurance companies developed and owned houses for private rent. After the Second World War, what we now call build-to-rent fell into decline with rent controls and other regulations stifling development. This also coincided with the rise in popularity of council housing.
It is claimed that build to rent – whether in central London or Greater Manchester – could be a financial stimulus. According to the Department for Communities and Local Government’s consultation paper, Planning and Affordable Housing for Build to Rent (February 2017), it will raise housing standards for potential tenants.
D and A Plumbing and Electrical Contractors, 05 April 2017.