New figures from 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 makes Manchester the top build-to-rent location outside of the capital and on a per capita basis, it is outperforming London.
Across the whole of the UK over 16,500 build-to-rent units are being built with more than 10,000 being located outside of London. Interestingly, Manchester and Salford account for more than 50% of these, demonstrating the huge demand for rental property in the cities.
Despite tax measures aimed at slowing down buy-to-let investments (increases in stamp duty and an end to mortgage interest tax relief), the build-to-rent sector continues to grow significantly. The UK government is looking to slow down traditional buy-to-let because it is severely impacting the housing market for first-time buyers. Instead it is championing build-to-rent because it introduces a level of regulation that the government feels the market needs.
Buy-to-let investing is seen by the government as detrimental to the housing market and not meeting the demands of modern tenants. Build-to-rent developments are regulated, professionally managed and deliver a consistent level of standards for tenants and this is why the UK government is actively encouraging this approach.