Deborah McLaughlin, chief executive, Manchester Place, provides an update on the programme for disposing of key sites to private developers

1. uilding Communities through build-to-rent

3. Manchester Place
• Unique City Council / Central Government partnership
• Helping to speed up the supply of new homes
• Identify key areas of growth - define the City’s
aspirations – create neighbourhood frameworks
• Create the conditions for growth and work with
investors, developers and land owners to deliver

4. Manchester’s population will continue to grow
Key drivers include:
• Employment growth
• Internal and international migration
• Birth rate and average household size
• Student numbers & graduate retention
• New homes built

5. Significant Investment Opportunities
• Potential to deliver 20,000 homes across three gateway areas
• Quality and place making at heart of developments
• Long term investor partners to deliver the ambition

6. Accelerating Land Disposals
• Stagecoach, Moss Side and infill
sites
• Little Peter Street – emphasis on
private sale
• Angel Meadow – high quality
rental and private sale
• Northern gateway from Victoria
station to Irk Valley

7. Funding
• Greater Manchester
Housing Fund - £300m
for 10 years
• Part of the city region’s
Devolution agreement
• Already loaned £66.7m to
six schemes delivering
over 1,000 new homes

8. Role of Build to Rent in the Market
• Fastest growing housing tenure
• The sector houses a wide range of households from
students and low income families to young
professionals and downsizers
• Range of funding models delivering units

10. Market Drivers
• Stretched affordability
• Mortgage regulation
• House price growth
Drives demand into the private rented sector

11. What’s happening in Manchester ?
• One third of Manchester households now rent privately
• 4 out of 5 city centre apartments operate in the PRS
• Fewer single occupiers (circa 25%)
• Increasing numbers of sharers
• Average household size has grown from 2.38 in 2008 to 2.49 in 2015

13. Manchester Place – Rental Growth
• Rents rose 15% 2014/5 [JLL]
• Gross rental yield average 7.9% [HSBC]
• Highest rents in Deansgate Corridor and Spinningfields
• Strongest rental growth in new neighbourhoods- Ancoats & New Islington

14. Increasing Demand in Manchester
Subdued supply created an exceptionally strong demand profile for PRS
underpinned by:
– Five years undersupply
– A thriving employment market
– Population growth driven by inward migration & graduate retention
– Over 100,000 domestic & international students

15. Third of the Pipeline to 2018 is for rent
• Purpose-built PRS accommodation forms 37% of the city’s residential
pipeline to 2018
• Circa 50% of pipeline to 2018 is apartments within the city centre
• Numbers of PRS may increase as the exit strategy for on-site & planned
apartment developments becomes clear

16. Why consider long term build to rent?
Source IPF
Community & People
• Provides access to good quality market housing for those without
savings/mortgage
• Supports economic growth & local development
• Creates sustainable & vibrant communities
• Improves mobility for young professionals
• Fosters customer-focused landlords for tenants wellbeing