Property News Round-up 25/10/16

Property News All The Latest Updates


Hi guys and welcome to our property news round-up, as usual we give you a quick snapshot of the latest goings-on in the property world. This week we start by looking at property rentals will outstrip property sales in 2017 to focusing on planning approvals in the Northern Powerhouse and London. Missed our last blog news round-ups? If so, catch up here.


Property Rentals Will Outstrip Property Sales in 2017

Property Money

Forecasts have suggested that 2017 might be the first year in eight decades where property rentals will outstrip property sales.

Johnny Morris, research director at Countrywide, mentioned in a recent Guardian article : “As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold.”

A sobering thought – homeownership levels had fallen to their lowest levels in 30 years at the start of 2016, although recent figures from mortgage lenders showed a pick-up in the number of loans taken out for house purchases, the number of homes for sale remains near a record low and prices are rising. Recent events such as Brexit uncertainty as well as a lack of supply has also contributed to the dip.

Being able to get onto the property ladder is becoming even more difficult for first time buyers with prices going up steadily.

However, that’s only the beginning.The 3% stamp duty surcharge that the government introduced back in April has led to a boom in buy-to-let purchase, the ramifications have led to a bigger amount of rental properties available to tenants.

The rental market has grown at such a rapid rate that the property industry needs to start focusing on offering the right kind of property for an array of people from millennials to retirees. Many commentators have mentioned that the industry needs to move away from traditional small portfolio landlords renting out their old home to a more professional approach offering tenants the best value and services available.


UK Rents Growing Fastest in Manchester

Manchester Property

Rental rates have risen by 7.1% in the north-west city over the last 12 months, as more investors turn to Manchester in search of the highest yields. (Select Property Group, October 2016)

The Northern Powerhouse city was named last year by HSBC as the city with the highest yields in the country. A recent report from Countrywide outlines that rents in the UK are now rising the fastest in Manchester.

At a national level, the rate of growth in the 12 months to September 2016 was 2.2% (last year it was at 2.8%). However,in Manchester, the rent growth rose by 7.1%, more than any other city in the UK. In addition, it’s also worth noting, of the 20 largest cities in the UK, the five which recorded the largest rental rate rises were in the north and Scotland, including York, Glasgow and Liverpool.

In contrast, the south paints a different picture, for example, London and Cambridge had the highest proportion of landlords cutting monthly rates in the last year.

Both domestic and international investors are turning to Manchester to find a property asset that can deliver a strong and sustainable income.

Johnny Morris, research director at Countrywide (who we mentioned in the previous news item) mentioned that there’s a different type of two speed rental market that’s emerging, with falling stock and growing demand driving rental growth in many northern cities at a higher rate than those in the south.


Reasons Why Build-To-Rent is The Future of Rented Living

build to rent

This news item links with the first – in a nutshell, a new sector and product that’s on the horizon and one that syncs very well with a tenant’s lifestyle and eliminates compromise – I’m of course referring to build-to-rent.

So why is build to rent the future of renting? Firstly, build-to-rent has been constructed with today’s end-user in mind. Ideal amenities such as gyms and communal cinema rooms in the same building. Locations in the city centre close to friends and employment hubs are ideal for the likes of millennials.

A key point about build to rent that it creates a community. Having these build-to-rent apartments slap bang in the city attracts people with similar jobs and interests, with friendships and an array of activities, tenants will want to rent for a longer period.

To simply put it, it just makes sense. Tenants want it, the government agrees with the build-to-rent idea, and investors too want a slice of the share too.

Demand for rental accommodation has increased by over 17k per month over the last decade, as more people move away from homeownership and turn to the private rented sector instead. As mentioned in the first news item, with property rentals looking to outstrip property sales next year, build-to-rent is more than likely to become the number one rental product in the UK. It’s therefore an investment opportunity that cannot be ignored.


A Brief Look At China’s Passion For Foreign Property

China P2P

Many real-estate agents and property experts in east Asia believe a new wave of investment is just getting under way, as mainland investors develop a taste for international real estate, including postcodes up and down the UK. (The Guardian, September 2016)

When it comes to buying property, Chinese investors look at four main motivations: investment, lifestyle, emigration and education. Many seek a foothold in the UK and hope their children will go on to study at university.

In addition, cities such as London are seen as a secure place to store money that investors want to move out of China, to guard against the devaluation of the Yuan. It’s known that people in mainland China want to get their money out. They therefore use cities such as London as a safe-haven to store their hard earned cash.

However, it’s not just London, investment is now heading north and Chinese investors and hungry to invest in the likes of Manchester and Liverpool.

Manchester for example has had a lot of interest from China when president Xi Jinping visited the city last year to lend his support to George Osborne’s “northern powerhouse” project during his first state visit to the UK.

Since 2014, Chinese investors have been rushing to buy houses in the UK, the high rental yields and stable property prices have been key driving factors.

Also, the UK is very attractive to Chinese property investors because it does not have the high duties that have been introduced in countries such as Canada and Australia for foreign buyers.

Property industry commentators argue that foreign investment from countries such as China is helping to transform urban centres around the globe, they mention that it’s the only way to finance affordable new homes in cities such as London.

They also see foreign investment beneficial for helping to create jobs, improve infrastructure, and in general making the quality of life better.

However, London mayor Sadiq Khan has warned against the capital’s homes being used “as gold bricks for investment”, and has spoken out over how some new developments are given to foreign investors before locals.

Khan mentioned back in May that he sees no point in building homes in the capital if they are bought by investors from the Middle East and Asia.

He stressed that he didn’t want homes being left empty. He emphasized that he doesn’t want London to be the world’s capital for money laundering and wants to give first dibs to people who live in the capital.


Northern Powerhouse Outstrips London for Planning Decisions

northern powerhouse

New research shows that local planning authorities in the Northern Powerhouse deliver 22% more planning decisions per resident than those in Greater London.

Research published by the British Property Federation and GL Hearn revealed that 25 boroughs in the Northern Powerhouse made 11 major planning application decisions per 100,000 residents in comparison to nine decisions per 100,000 residents in the Greater London area.

Melanie Leech, chief executive of the British Property Federation, said: ‘It is really encouraging to see the North live up to its ‘powerhouse’ moniker, and to be powering ahead with its development pipeline. The development industry has an important part to play in ensuring growth across the country, and it is good to see that there is lots of activity in the North West. (LocalGov, October 2016)

What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.


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HMOs: Targeting Young Professionals in Shared Accommodation

Specialist commercial lender, Shawbrook Bank, has released a report highlighting HMO Investment Growth as a result of the increasing popularity of shared accommodation.

Young professionals, as you may already be aware, are focusing more on the rental sector. Of course, this is partially down to high house prices. However, the report notes that this demographic are sticking to the rental sector, and shared accommodation in particular, due to the capacity for higher levels of disposable income.

A further survey undertaken by, which studied 10,000 tenants living in shared accommodation, found over 70% of participants to be under the age of 30, with over 50% identifying as ‘single’.

The combined factors of high house prices and desirability of higher disposable income is compounded by the importance of social life to this group. The Millennial generation is one where friends and fun are key to life satisfaction. It’s no wonder then that living with a group of friends is the accommodation choice for young professionals and recent graduates.

HMO Investment Growth Fuels Landlord Interest

From the property investor’s point of view, HMOs, therefore, are becoming an increasingly popular choice of investment. Compared to other buy-to-let investments, HMOs yield an average of 10% per annum. This compares favourably compared with the 6-7% rental yield to be expected from standard buy-to-lets and blocks of flats on a single freehold title.

With HMO Investment Growth fast coming under the radar of landlords, competition is stiff. As such, investors seeking to cash in on these high rental yields are increasingly finding ways to set their property apart from the rest.

Higher spec HMO properties are springing up, particularly in the popular urban centres favoured by shared accommodation-loving young professionals. Included wifi, flat screen TVs in communal areas of the property, high quality fixtures and fittings, and other features perceived as appealing to their desired tenants, are outlays investors are prepared to make in order to reel in those 10% yields.

Shawbrook’s report concludes with these words:

“Demand for this asset class is on a consistent upward trend… with the supply/demand challenges across the UK housing landscape, and the resulting importance of the Private Rented Sector, HMO property is and will remain an essential and affordable source”.

That being said, local authorities are quickly catching on. Licensing schemes for HMOs are being considered and implemented in some areas, which will limit the number of such properties available in particular districts. As such, anyone considering HMO investment will need to look into this before deciding on their purchase.

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Why The UK Rental Market Is Surging

A recent report has revealed that property in the UK is swinging more towards the rental market. As many commentators have mentioned, there has been a significant reduction in home ownership in the past number of years and many expect that this trend will continue.

The summer slowdown has seen properties with four bedrooms or more are struggling to sell, and as a result have remained on the market for an average of 74 days, according to data from RightMove.

Property analysts are speculating whether the property market will gain strength again during the Autumn and also get a clearer picture of the market and hopefully shake off that post-referendum hangover.

The Bank of England’s recent interest rate cut should give buyers some confidence with cheap-to-borrow money.

Although a lot of uncertainty still looms following June’s Brexit vote, the question remains:

Why is the UK is switching to a property rental market?

Firstly, this is linked to the surge of investors who were rushing to complete buy-to-let deals before stamp duty was hiked by 3% in April.

The demand for rented properties in the UK has increased by 10% due to Brexit uncertainties. Recently, the Royal Institution of Chartered Surveyors (RICs) reported the number of properties on the market was at a record low.

Another factor that should be taken into consideration is employment mobility. For example, if we look at millennials and their lifestyles, they are known for being constantly on the move, and renting a space is more practical to them than saving for a deposit.

In addition, they are very sociable. Figures from Statista highlight the importance of socialising to millennials. Their research shows that 51% stated that socialising was where their remaining disposable income was most likely to be spent. Therefore, the likes of build to rent properties are appealing as they provide communal areas for their residents, hoping that they will stay in their rented accommodation for some time. They are one demographic in particular that are currently reshaping the UK housing market.

From millennials, now turning our attention to investors. Long term investors are willing to pay just that little bit more compared with the likes of first time buyers who are looking at settling into their first home.

These are the type of investors who may have a number of buy to let properties in their portfolio and realise that as their financial liabilities reduce they will actually be able to increase rental income (providing they have done their homework properly and invested in areas that pay out suitable yields).

Whether the recent increase in buy to let related taxes, which were set by the former chancellor, will have an impact in the short to medium term still remains to be seen. If rental yields bring in enough money to cover all liabilities, and leave a wee bit extra in their bank accounts, the question is would BTL investors really pull out of this market?

If you are a BTL investor and HAVE done your homework, you’ll know that the north is the place to be. If you haven’t, we recommend Manchester. The Northern Powerhouse city has an average rental yield of 6.2%.

Investors can benefit from significant demand from the city famous for its two Premier League clubs and music scene, as well its big student population. Average property prices in Manchester stand at £135,000.

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As we’ve previously mentioned, there are numerous factors as to why the UK property market trend has now switched from home ownership to rental.

The Brexit vote has caused some concern and confusion for now, and until the Brexit mist clears we will see fewer people committing to long-term property purchases. The likes of millennials are also changing the housing model and with lucrative investments across both sides of The Pennines, the rental market switch in the UK looks very buoyant indeed.

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Property News Round-up 3/8/16

Property News All The Latest Updates


Hi guys and welcome to our first property news blog of the month! As usual, we will be taking a look at the latest goings-on in the UK property market with five short stories. Today, we start our property news round-up by looking at Generation Y and their renting habits to focusing on Aegon’s research on homeowners and pensions. Missed our last round-up? If so, catch up here.

Millennials Like The Flexibility & Freedom of Renting

Millennials Property

Recently, a study confirmed something that most 18 to 30-year-olds already know: they can’t buy houses and also something we are familiar here at The House crowd from conducting our own research. As The Independent’s Thea De Gallier points out : “Millennials are abandoning their dreams of home ownership,” declared a damning report that revealed home ownership in the UK has fallen to 63.8 per cent (for context, it was 70.8 per cent in 2003).”

So why is it so hard for millennials like myself to become a property owner? Firstly, the average house price in this country is just over £200,000, (almost 10 times the average wage!) Secondly other regions are playing catch-up with London’s astronomical prices which has left us no choice but to rent.

But is renting necessarily a bad thing? Today, Generation Y are known for their fast paced life style and are constantly on the move, renting is surely ideal for them.

Research can back this claim up, for example, Deloitte found out that 44 per cent of millennials want to leave their current jobs in the next two years, in addition, Econsultancy found that 69 per cent of all graduates thought freelancing was a more attractive option than long-term employment. (Stats taken from The Independent)

On the other side of the Atlantic, many commentators have mentioned that millennials simply don’t want to own a property. One source in particular views that millennials are “[thinking] differently about what it means to “own” something”.

I totally agree with the commentator as we are currently living in a sharing economy. Moreover, I completely side with De Gallier’s points in her article that we need a similar renting cap that is used in European cities such as Berlin. It’s fair to say the current system isn’t working for us even though some of us like to rent. We definitely need to seek alternatives – the likes of property crowdfunding could be one of those methods, which you can read more about here.

Why Are Fewer People Purchasing Properties in Greater Manchester?

Property News North West

BBC News reported yesterday that home ownership has fallen more sharply in Greater Manchester than anywhere else in England.

The biggest question on everyone’s lips is why? Financial Analyst Louise Cooper says the issue stems from house cost to wage ratios. She told the BBC that : “The average house price in England in 1986 was £38,000, today it is £226,000,” she said. “Over the same period the average salary has gone up two and half times.”

She adds : “The price of property compared to salaries has gone up hugely. Everyone says it is a London problem. It is not. Manchester is one of the worst.”

Our very own Frazer Fearnhead mentions in the BBC article that Manchester has a large student population and young professionals in the city prefer to rent.

Frazer believes that the Greater Manchester area mirrors the rest of the UK in the fact there are not enough houses being built, fuelling a demand that pushes up prices.

Read more on the issue here.


Investors Pull £1.4bn From UK Property Funds in Brexit Month


Retail investors withdrew £1.4bn from property funds in June, 6 per cent of the sector’s assets, as the Brexit vote sparked an exodus that forced some of the largest funds to halt trading. (, August, 2016)

Following to the leave the EU in late June, led to many moving money out of property funds which forced Standard Life’s UK Real Estate fund to suspend redemptions in early July.

Others followed suit, such as Aviva, M&G, Columbia Threadneedle, Henderson and Canada Life.

Senior analyst at the retail investment broker Hargreaves Lansdown, Laith Khalaf, told the FT : “The scale of the exodus from investment funds in June is quite extraordinary, with the Brexit vote eclipsing the financial crisis in terms of putting the frighteners on retail investors in the short term.”

At present, around £15bn of investors’ money remains trapped in suspended funds that lack enough liquid assets to meet redemption requests.


UK Construction Crashes At Fastest Pace Since Financial Crisis

UK Construction

Construction output in June has fallen at its fastest pace since the dark days of the financial crisis in 2009 according to a survey by Markit and the Chartered Institute of Procurement and Supply (Cips).

Purchasing Managers Index figures indicate that Slower demand has lead to a drop in purchasing activity for the first time in just over three years. The index dropped from 51.2 in May to 46.0 in June, with anything below 50 indicating a contraction, as The Independent’s Ben Chapman reports.

Despite having record house prices, it was revealed that the weakest performing sector was residential construction. In addition, commercial building work was also weak, as new projects did not start to replace those that were coming to completion.

The EU referendum has been linked to the slowdown as there are still many uncertainties. Senior economist at Markit, Tim Moore told The Independent : “Widespread delays to investment decisions and housing market jitters saw the UK construction sector experience its worst month for seven years in June.”

However, David Noble, chief executive officer at Cips mentioned that the only glimmer of light through the brickwork is the rate of decline was not as sharp as that experienced during the previous financial crisis.

A spokesperson for Home Builders Federation said recent figures should not be viewed in isolation and that long term trends for the sector were good.


Little Appetite For Using Property As Pension As Research Shows

Property News Landlords

Research conducted by Aegon revealed that majority of homeowners do not want to use their property wealth to fund retirement.

Their study showed 74% of homeowners would only use their home as a “last resort” to provide a retirement income or do not consider their home as a source of retirement income at all. (Professional Adviser, August, 2016)

Moreover, Aegon found out that more than half of the research respondents want to leave their home to their loved ones.

Only 3% of those surveyed said that they would sell their property and move in with family as a means of funding retirement. 21% of homeowners are hoping they can fall back on inheritance to assist them with their retirement plans.


What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

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Your Guide To Investing in Central Manchester

Manchester has come of age, and can now proudly boast the title of Capital of the North. It is a city rich in modern cultural vibrance as much as historical heritage; a magnet for the creative, forward-thinking minds of the future. Manchester is a bona fide example of a 21st century city, on course to continue with the exciting growth we’ve seen there in recent years. As such, the Manchester property market is an absolute hotbed of money-making potential.

Another reason to invest in Manchester in particular? By 2050, it is estimated that a staggering half of all households will live in cities. Homes are set to become smaller and smarter, whilst cities – of course – offer the facilities, entertainment and lifestyle options that are simply not available in the suburbs.

Map of Central Manchester


So, with all that as an introduction, let’s get stuck into looking deeper about why investing in property in Manchester could be the ideal investment decision.

Regeneration and Investment

There are so many regeneration projects either in progress or on the horizon in central Manchester at present, it’s hard to know where to begin. But we’ll do our best.

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Located within a strategically valuable gateway location in south western Manchester city centre, the Cornbrook Hub is situated close to the A56 Bridgewater Way, with good access to Pomona Island (part of the development site), the Bridgewater Canal, and with the Cornbrook Metrolink station central to the site. This Metrolink station is key to the city’s public transport network, and therefore vital to the success of this development area.

Right now, despite its great location, Cornbrook is an underutilised part of the city, occupied by open storage yards and scrap metal merchants. It’s these that are detracting from the massive potential of the area, and making it incompatible with recently regenerated St George’s Island, and new proposals for Pomona Island. In short, there is a huge amount that this area of the city could offer. You can see the full regeneration proposal here.

Development talks are still in progress, with some dissent still coming from campaigners objecting to development on the natural space on Pomona Island, and negotiations with businesses unwilling to move from their offices within the proposed development site.

Nonetheless, all signs point to a strong future for the area, and it’s likely to be a prime location to consider for early investment opportunities. Watch Cornbook closely.

Medieval Quarter

Set within close proximity to the city’s retail hub, near to the Salford city border, the Medieval Quarter is a culturally and historically rich area of the city. Home to both Chetham’s School of Music and Manchester Cathedral, as well as the National Football Museum, new developments within the area are promising.

Not only is the destination itself prime territory, it’s also an ideal route to the main business sector and retail core of the city. Proposed new developments will expand on the green space and tree coverage in the area, and seek to drive the Medieval Quarter’s attractiveness to potential new residents. Find out more about the Medieval Quarter proposals here.

East Manchester

East Manchester, specifically the areas of Ancoats, New Islington, Beswick, Miles Platting, Openshaw, Clayton, Newton Heath and Gorton, has undergone substantial redevelopment in recent years.

It was the part of Manchester most severely affected by the industrial decline of the 1970s, in which over half the area’s manufacturing jobs were lost. House values subsequently plummeted. As a result, the area spent a long time in a state of impoverishment.

Things, however, are now on the up. Huge investment in the creation of family neighbourhoods – involving the construction of over 5,000 new homes, and the improvement of over 6,700 – is now paying off. Three new shopping centres, two new health centres and seven children’s centres have appeared, as well as 1,300 local companies supported by business advisors, and nearly 200,000 square metres of prime commercial floor space has been built.

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In the Ancoats area, design-led apartment blocks have been integrated into well thought-out and sustainable neighbourhoods. Though most have been snapped up already, construction is still going on, so it’s worth registering an interest, particularly if the words ‘edgy’ and ‘progressive’ appeal to you.

Similarly, New Islington is worth a mention. Located within Ancoats, Urban Splash (the renowned Manchester property developers) have been behind the creation of this brand new community. They brought in avant garde architect Will Alsop to design the housing stock, which is aimed at families (there’s a lovely, fresh ‘free’ primary school here), both rental and owner-occupier.

As a result, East Manchester is now quickly becoming an area renowned for its business prowess. It shows promise in becoming a significant employment location, with successful companies choosing to locate themselves in the new and thriving area.

Manchester Area Facts

New Bailey, Salford

Spanning 17.5 hectares (that’s about 21 football pitches, to you and me), the £650 million development on the banks of the Irwell was given the go-ahead in 2015.

90 rental apartments in the Ordsall 11-storey tower block (200 metres from Salford Central station), a mix of cafes, bars and restaurants, outdoor events space and a new public square, form just part of the development.

A further 100 apartments have already been built on the site of the former Vimto factory, and 372 flats within a 15 storey ‘Manhattan-style’ block on Woden Street are in progress. 580 apartments, boutique studios and townhouses are proposed for the £75m Adelphi Wharf scheme. 36 townhouses with rooftop gardens have received planning permission overlooking the river.

All in, over 1,000 new homes, along with hotels, shops, leisure facilities and restaurants are expected in New Bailey. This is estimated to bring 11,000 jobs to the area.

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Just as with most aspects of Manchester right now, the city has ambitious plans for the future of its transport networks. There’s a long term vision in place (see video below), but they’re working in five year increments to keep improvements moving constantly into the future.

Greater Manchester’s Transport strategy is focused on devolution of powers and funding from central Government, pushing for greater local determination of policies, funding and delivery. In short, it has big ideas, and wants to be in control of making them happen. That explains why their plans reach forward as far as 2040.

It’s all very positive and forward thinking, with key emphasis on supporting sustainable economic and population growth. You can read the full Greater Manchester Transport Strategy report here.

Demographics and Work

We’ve got some cracking stats on demographic data for Manchester city. Just for ease, we’ve laid them out visually for you:

Demographic Data on Central Manchester Residents


Manchester Residents Gender Figures



We also investigated the Annual Survey of Hours and Earnings, and found that the median weekly wage for residents of the city of Manchester was £392 in 2015, just shy of the median for the north west as a whole (£401). The median figure for the whole of England in 2015 was £430.

Employment in Central Manchester

Some more data for you to chew on:

  • The 2011 census showed Manchester to be the fastest-growing city in the UK, in terms of population
  • Greater Manchester is home to more multi-millionaires than anywhere outside London, with the highest levels attributed within the City of Manchester itself
  • Manchester rates 7th in the 2016 mid-year Quality of Life index for Northern Europe, behind Edinburgh (1st), Copenhagen (2nd), Reykjavik (3rd), Helsinki (4th), Stockholm (5th, and Tallinn (6th). London, by comparison, is 12th. It is also ranked 6th in the UK
  • Manchester is rated second most globally influential city in the UK after London
  • Research at the University of Manchester is ranked the third most powerful in the UK, behind Cambridge and Oxford
  • Along with London, Manchester featured in the top 30 cities in the world for investment. Of the top 30, Manchester was 12th for the highest proportion of urban economy derived from financial and business services

Quality of Life in Northern Europe

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Manchester City Property Market

Manchester City Property Asking Prices

We think we’ve made it fairly clear how highly sought-after the City of Manchester is as a residential area. But let’s look a little deeper into what an investment in Manchester property could mean.

The 2011 census tells us that, at that time, 37.8% of households were owner-occupied, and 28.4% were privately rented. Subsequent data suggests that the rental figure has ballooned considerably since 2011, whilst owner-occupancies have decreased. Council and social housing made for 13.5% and 18.1% respectively. Just over 30% resided in terraced properties, though this figure has since decreased.

Data from the Office for National Statistics shows Manchester to have the greatest percentage point increase in proportion of flats sold between Q4 of 1995 to Q2 of 2015. Flats sold in the city have risen from 10.1% in 1995 to 35.6% of all property sales in 2015. This equates to a 25.6% increase.

Investing in Central Manchester: Properties on the Market

Looking at the number of properties on the market at present, compared to 2015, we can see that there has been a significant drop-off. There are 27% fewer properties of all types on the market in July 2016 than there were this time last year. Nonetheless, in keeping with the data from the Office for National Statistics, the highest proportion continue to be flats, with 1471 up for sale in July 2016. This equates to 19% fewer than last year.

Manchester Property Market - Time to Sell


Manchester Property Market - Time to Sell


Manchester Property Market - Time to Sell

Of course, where there are fewer properties on the market, demand is high on those that are for sale. From our information, in the period May to July 2016, it seems terraced houses, and one bedroom properties, take the least amount of time to sell. Interestingly, however, when we look at value, it’s the £400,000 to £500,000 bracket that is snatched up quickest.

The Rental Market

When we look at July 2016’s data on the rental market in Manchester, we see that the most popular properties for rent are in the two bedroom category. They fly off the market within an average of 51 days, and there are nearly 2000 on the market at time of writing. Tenant occupancy rates in Manchester are at over 97%.

Why so popular? Well, there are a number of factors at play making rental the primary accommodation option for residents in Manchester. Firstly, the lack of lending for mortgages, and a decline in social housing. Then there is the shifting employment landscape and continuing immigration. Divorce rates are higher than ever, and (completely unrelatedly, of course) people are delaying marriage for longer. Finally, there’s the rise in student numbers.

Demand for high quality, purpose-built student accommodation is higher than ever. Students, it seems, aren’t happy to fester in mould-encrusted digs anymore. We won’t mention anything about millennial entitlement issues here. But the result is that Manchester is providing property that meets the demands of the city’s valuable student population, and with over 80,000 students arriving every year, this is a lucrative market.

Manchester Rental Market Figures


What’s more, a large number of students enjoy Manchester so much that they stay on after they’ve graduated, moving up to a house share or city centre apartment as they make the transition from study into the workplace.

In the city centre, in the rental market in particular, the highest demand can be found in those smart, European style open plan apartments and converted warehouses. Even more so, high quality micro-living apartments, and those boasting new techie smart home features. These are the sort of properties young professionals rising up through the economic ranks are after, and the city centre is where they want to make their home.

To Conclude: Should I Invest in Manchester?

Of course, we can’t tell you to invest anywhere. We cannot make assurances, and markets can always drop as much as they can grow. Having said that, however, all signs point to a glittering future for Manchester city centre.

Regeneration is reaching deep into every crevice of Manchester, with billions being invested in the continued growth of this city. Great minds are seeing the sheer potential Manchester has to offer, and for those savvy enough to jump on the right opportunities as they come up, there is a sense of the property market here being ripe for the picking.

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Property News Round-up 13/7/16

Property News All The Latest Updates

Hi guys and welcome to our first property news blog of the month, as usual we will be given you a snap shot of the latest goings-on in the domestic market. This week we look at the Manchester property market and how it is still strong after the Brexit vote to ending our round-up and focusing on landlords setting up companies in order to save tax. Slightly behind with what’s going on in the property world? If so, catch up with our last property news blog update.

Manchester Property Market Still Strong Despite Brexit

Property News North West

New development plans in the city are not overheating despite recent news of apartment developments that have been given the green light.

New schemes approved in the last few days include Salford council’s approval for a 35-storey tower and a 17-storey tower at New Bailey Street developed by Trinity Riverside Holdings and a 68-storey tower at Owen Street proposed by Renaker. The landmark development will provide 1,508 apartments and penthouses in four blocks of 39, 46, 52 and 66 storeys. (MEN, July 2016)

Natwest’s Heath Thomas mentioned in MEN that consumer confidence will affect demand for mortgages, but the fundamentals in the city’s residential market are remain sound because there is a structural shortage of homes across the length and breadth of the country.

Addleshaw Goddard’s, Marnix Elsenaar also added his views in the MEN saying Manchester has all of the ingredients it needs to take forward housing delivery, however, it will need to fight with the central government to be able to deliver the right housing products that cater for the city specifically.

He stressed that it is important to ensure central government policies don’t kill off this growing sector.

Read more on this topic here.


Chinese Buyers Look Again at U.K. Property

China P2P

Due to the recent drop in the pound, many Chinese property investors have started to look at the U.K. market for potential bargains.

The number of so-called leads from Chinese home-seekers for U.K. properties recently doubled according to, a real-estate website based in Shanghai that allows Chinese buyers to browse residential and commercial properties around the world. Leads indicate that a buyer was interested enough in a property to contact a real-estate agent or developer. (WSJ,June 2016)

Manchester in particular has seen a wealth of Chinese buyers and investors. For example, a recent development at Salford Quays, called the Dock Office, just half the apartments were sold to locals. A quarter went to Chinese nationals.

They are not just buying and investing they are also involved in the construction process.

The Beijing Engineering Construction Group is investing £800m in Manchester’s Airport City, which will include a hub for other Chinese firms to set up. President Xi Jinping saw the site in person when he visited last year. (BBC, April 2016)

Now that Manchester has direct flights to both Beijing and Hong Kong also makes it even more easy for potential investors to visit the city and seek long-term opportunities.


Rental Prices Increased in June

Property News Landlords

Rents kept increasing in the three months to June, but there are signs that the growth in the rental market slowed in the first half of 2016 as compared to last year. (City A.M., July 2016)

According to HomeLet, The average renter in the capital now pays £1,575 per month, up 3.9 per cent on last year. For the rest of the country, renters pay an average £773 per month, which is 3.5 per cent higher than last year.

Barbon Insurance Group’s chief executive Martin Totty shared his views in City A.M. stating : The impact of the EU referendum vote will now play out over the months ahead: if as expected, the result acts as a restraint on the supply of new housing, the gap between demand and supply in the private rental sector will remain marked; all the more so if more people decide to rent while waiting to see what happens to house prices.”


How Much Will Your House Be worth in 2030?

Property News - First-time buyer mortgage

The average price of a home in England will be more than £450,000 in 2030, according to research from estate agents eMoov.

Their calculations were based on the 84 per cent increase in house prices during 2000 and 2015 and applied it to the next 15 years.

The map (below) illustrates just how dangerous this current artificial inflation of the market could be in the long run (as eMoov’s Russell Quirk mentions in the Daily Mail), it’s not just London (where typical values of £1.9million could climb to £3.4million in some parts), the issue will spread all over the country.

UK Property Map 2030

Image Source : eMoov/Daily Mail


Landlords Expected To Set Up Companies To Save Tax

Crowdfunding News

Landlords are increasingly expected to exploit a loophole in the law that allows them to avoid the Chancellor George Osborne’s hefty, punitive tax raid on rental properties, according to a leading mortgage expert. (Landlord Today, July 2016)

Foundation Home Loans‘ commercial director Simon Bayley told the FT that he predicts to see over 75% of mortgaged buy-to-let acquisitions going through a limited liability company (LLC) structure in the next 12 year or so.

In addition, Mr. Bayley believes that many landlords may consider transferring their existing properties to a LLC.

He goes onto mention that if landlords are using income from a current rental they may require help calculating if the capital outlay is affordable for them, even if the long term benefits suggest to explore the LLC route (also mentioned in Landlord Today).

Mortgage Concepts Associates director Mike Richards agrees with Bayley’s insights, his view is that gradually most lenders who are in the sector will offer this (the 75% or more projection) and premium lenders that are charged for limited company mortgages of around 0.5% will ultimately vanish.

Moreover, he reckons that you will still get a percentage of people who will mistrust the limited company route, but in reality, this is really the only way to go for the future of the buy-to-let market in the UK.


What Are Your Thoughts?

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Stepping Up To The Plate

The House Crowd steps up as many landlords step back from LHA tenancies.

More than half of landlords can no longer afford to rent to tenants on housing benefits according to a survey by the National Landlords Association (NLA), which we at www. think is a very worrying statistic.

We’ve known for a while that cuts to allowances were happening, however, with 53% of landlords now stating these cuts make it untenable  to rent to those on benefits, and almost 69% saying they don’t expect to rent to LHA tenants in the future , what position does this leave these vulnerable people in?

It is times like these when property investment strategies such as our crowdfunding model really come into their own. Not only are we stepping in as LHA landlords, at a time when supply is increasingly limited but demand is high, we are also enabling would-be landlords the opportunity to be part of a property investment group, without the worry issues such as these can present.