Rental demand in the UK property market has increased by 51% compared to the five-year average according to Zoopla’s latest UK Rental Market Report, with annual inflation in rents for the year reaching an increase of 11.1% in March.
The average rental costs in the UK rental market have increased by 11.1% in the last year according to the latest UK Rental Market Report released by property website Zoopla, with rental demand having also increased by a staggering 51% compared to the five-year average.
Rents in the UK rental market have also risen by 20% over the last three years – equivalent to an additional £2,220 a year – as the market ‘ran hot’ with a ‘perpetual boom in residential rents’ that are continuing to increase well ahead of earnings growth in the country.
Following the new visa rules that were introduced in 2021 to encourage immigration into the UK, a major influx of both students and professionals looking to study and work in the country resulted in record-high net immigration totalling 504,000 people moving to the UK, and has therefore contributed to the high demand for rental properties. However, there are currently a third fewer homes available to rent in the country, meaning that the demand for each available rental property has reached 250% above the five-year average.
The number of overseas students studying in the UK reached 680,000 in the 2021/22 academic year, an increase of 122,000 students in just two years as a result of the new visa rules, and has provided an even larger target market for universities as part of their ongoing strategy to attract talent to the UK.
While university towns provide purpose-built student accommodation (PBSA) to their students, over the last five years there has been an ongoing supply and demand imbalance for this residential offering that has meant that students are looking to alternative means of accommodation in the market and boosting rental demand in cities.
At Beech Holdings we have seen increasing demand for our properties amongst the student market in and around Manchester as the number of apartments available to students provided by the five universities in the city falls well below the demand for student-friendly accommodation in the area.
With all our buildings in proximity to either the University of Manchester, Manchester Metropolitan University, University Academy 92, and the University of Salford, our in-house Lettings team, Manchester Apartments, currently sees more than 80% of our portfolio rented out to students on a monthly basis with demand in the student-hub areas of Manchester the highest – especially Salford Quays.
Since its completion in September 2021, our Brookland House development has maintained 100% occupancy with demand for rented accommodation in the area able to fill the building 25 times over. With this in mind, we decided to bring a brand-new residential offering to the area with already high proven demand, and welcome City Co-Living MediaCity to Salford Quays.
Providing residents with a modern renting experience complete with a wide range of on-site facilities, including a rooftop terrace overlooking Media City, co-workspaces with private bookable meeting rooms, a residents’ lounge and media rooms, private bookable dining rooms to cook and entertain friends, and much more, City Co-Living MediaCity is set to revolutionise renting in Manchester and its surrounding area.