Young workers shifting from London to Manchester


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21 Jan 2019

Londoners are facing housing crisis, as there exists a lack of affordable homes and economic issues are also hurting the city growth. As per latest reports, tenants are spending one-third of their earnings towards housing, while fifteen years ago, people were spending on-fifth of their incomes in rents. London YIMBY previous reports claimed rents have inflated by over 300 per cent due to planning restrictions and the cost of development increased 75 per cent. By 2025, it is expected the number of tenants in London will increase to 3.5 million. Last year 79 per cent of the adults had moved to the capital city on rent and average home price continues to increase, that is 5 times higher, in comparison to, 50 years ago.  

Northern Cities Growing 

As per ONS data, in 2002, 440,221 people were living in Manchester, and now there are over 555,610 people. The city underwent 26 per cent growth in population, which mostly constitutes younger workers. In 2017, there were 129,458 young people in the city, although, in 2002, the number was 85,673. Better transportation facilities, job environment, and connectivity to nearby cities, culture and new developments at the city centre, is attracting young skilled professionals and students to Manchester.  A record year of office take-up was reported in 2018, where 314 transactions were made of office area 1.75sq. ft. (or over) as per Manchester Office Agent forums report, and the largest acquisition was made by Booking.com i.e. the campus Manchester Goods Yard. 

Government to scrap Right to Buy

Recently, the government called to scrap the Right-to-buy provision where 40 per cent of the houses sold under the scheme have been rented our privately.  The housing minister Kit Malthouse said under the Right-to-buy scheme, over 100,000 people have been given homes, since 2010, which includes over 17,000 in London.  Housing revenue account borrowing cap has been lifted and many homes were built in places, where it was needed the most. 

Built-to-Rent 

The British Property Federation (BPF) report claim the number of built-to-rent homes under construction increased 40 per cent in 2018, and the number of such homes completed is 30 per cent in the UK. There are total 139,508 built to rent (22% growth) under construction, completed or in the planning stage. There has been a significant drop in permitted development rights in the capital city for built to rents. PDR was granted for 30 per cent of such homes in London but only 9 per cent are under construction. 

 

Housing Crisis and Micro Home Plans

The Adam Smith Institute, recently, proposed to construct micro homes, especially, designed for youngsters where the homes will be fitted with all amenities, and it will be built close to city centers, where there will be rooms for co working and games. This will reduce inconvenience to the young workers who spend hours in commuting every day.  The company is preparing to build homes on 37sq.m space that will make use of space appropriately, and provide space to help people live close to the city centre. 

To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com). 

 

 

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