Manchester and Salford are the build-to-rent premier cities

Manchester and Salford are the build-to-rent premier cities

New statistics published by the British Property Federation (BPF), in association with Savills, the global property consultancy, reveal that more than 5,500 build-to-rent properties are currently under construction in Manchester and Salford. This easily makes Manchester the build-to-rent premier city outside of the capital. In fact, on a per capita basis, it is even outperforming London.

On the whole, over 16,500 build-to-rent units are being built across the UK with over 10,200 being located outside of London. Manchester and Salford account for more than a 50% of these which is extraordinary, and shows the huge demand for rental property in the cities.

Despite a series of stringent tax measures that have kicked in since the beginning of April aimed at slowing down traditional buy-to-let investments (increases in stamp duty and an end to mortgage interest tax relief), the build-to-rent sector continues to flourish. Whilst the UK government is looking to curb traditional buy-to-let because it reduces the size of the housing market for first-time buyers, it is championing build-to-rent because it incorporates a level of regulation that they feel the market needs.

Buy-to-let investing in the traditional way  i.e. buying up an old property, doing it up and renting it out, is seen by the government as antiquated and not meeting the demands of modern tenants. Its preference is for build-to-rent developments which are regulated, professionally managed and deliver a consistent level of standards for tenants. For investors, build-to-rent is also a good alternative. It offers a more hands-off way of entering the property investment market without the hassles of being a traditional landlord.

Want to know more about build-to-rent in your area? Please get in touch.