On the final day on August 2022, there were less properties available to rent in Manchester than at any other time on record. Alliance City Living's monthly research has discovered that on this date, there were only 360 properties available to rent in Manchester – 67 fewer than the previous record in September last year.
The continuing fall in available homes to rent, as well as the typical high demand during the summer lettings period, has once again pushed rents even higher. 1- bed apartments in the city now exceeding £1,000pcm for the first time ever. 3-beds are increasing higher still, with average rents approaching the £2,000pcm mark – an increase of over a quarter in the last 12 months.
This lack of supply shows little sign of slowing, with the number of homes in Manchester currently continuing to decline, with just 14,269 homes currently under construction.
Rising rental trends
As the number of homes available to rent in Manchester drops to record lows, rents for apartments have reached record highs. In the last 12 months, average rents for 1- bed apartments have increased by 18.1%, or £153.40pcm. 2- beds have risen by 29.8%, or £328.40pcm, and 3-beds have increased by 25.5%, or £403.00pcm.
In recent months, 2-- and 3- beds in Manchester have become increasing popular with sharers, as they offer a more affordable solution to living alone. Average rents for studios have remained the same in Manchester since July at £832pcm. There are currently just 12 studio apartments available to rent in the city, which goes some way to explain why this unit type is less popular and has not seen similar rental increases of other unit types.
Traditionally, September sees increased demand from renters, which may be even higher this year due to the dwindling availability of rental properties.
Future forecast
The summer of 2022 has shaped up to be a strong year for lettings – despite the lack of available supply of rental properties. However, the lack of availability on the rental market, suggests that it is likely that this year will be one of the least active years for letting since the COVID peak of 2020.
Alliance City Living’s lettings team are seeing demand continuing to reach unprecedented levels. Multiple offers for each listing are routinely made, and apartments are being let within a few hours of being listed.
It has also been reported that availability for rental properties in Manchester has become so restricted that some universities have been offering significant financial incentives for students to live as far away as Huddersfield or Liverpool.
With the Manchester property market performing so strongly, all indicators suggest a rosy future for both investors and homebuyers alike. The latest Alliance City Living data is further evidence that Manchester is a city where you can be confident in the property market.
To find out more about buying a luxury apartment in Manchester city centre, please get in touch with the team here.