Young Workers Shifting from London to Manchester

Londoners are facing a housing crisis, as a lack of affordable homes exists, and economic issues are also hurting the city's growth. As per the latest reports, tenants are spending one-third of their earnings on housing, while fifteen years ago, people spent one-fifth of their income on rent. 

London YIMBY's previous reports claims rents have inflated by over 300per cent due to planning restrictions, and the cost of development increased 75per cent. By 2025, it is expected the number of tenants in London will increase to 3.5 million.

Last year 79per cent moved to the capital city on rent, and the average home price continues to increase, which is five times higher compared 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 a 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, connectivity to nearby cities, culture and manchester new developments in the city centre are attracting young skilled professionals and students to Manchester.  

A record year of office take-up was accounted for in 2018, where 314 exchanges were made of office zone 1.75sq. Ft. (or over) as per the Manchester Office Agent forums reports, the largest acquisitions were made by Booking dot com. 

Government to Scrap Right to Buy

Recently, the government called to scrap the Right-to-buy provision where 40per cent of the houses sold under the scheme has been rented privately.  

The lodging clergyman Kit Malthouse said under the Right-to-purchase plan, more than 100,000 individuals have been given homes since 2010, which includes more than 17,000 in London. 

Built-to-Rent 

The British Property Federation (BPF) report guarantees the number of worked-to-lease under-development homes grew 40per cent in 2018, and the number of such homes completed is 30per cent in the UK. There are a total of 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, specially designed for youngsters, that will have all the necessary amenities and be built close to the city centre, with rooms for co-working and games. 

It will reduce inconvenience to young workers who spend hours commuting every day. In addition, the company is preparing to build homes on 37sq.m space that will use space properly and provide space to help people live close to the city centre. 

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