Philip James continues to be the market leader when it comes to letting properties for their landlords, and Manchester continues to be the strongest area for growth outside of London for property. At the time of writing, we are the number one lettings agent in the Greater Manchester area for the number of properties let since January 2023*.
Data Source: *Rightmove Plus, Number of lets agreed, 1/1/2023 – 10/7/2023,
Supply and Demand
As in previous quarters, available rental stock remains significantly tightened in the city when compared to growing demand. As a business, we are currently seeing a resign ratio of 60:40 in terms of tenants staying in their tenancies vs tenants moving on. All pointing to a preference for tenants wanting to avoid a competitive marketplace. The demand for properties can be seen elsewhere. On Rightmove alone, we are receiving an average of 176 email enquiries per property between 21/5/23-21/6/23. To meet this rising demand we have grown our lettings team by 5 people, which will be particularly important as we approach the summer peak season.
Marketing Leading Lettings
Of all our 3000+ managed properties, representing a total value of £554m, only 21 currently sit vacant. This is in part due to the buoyancy of the market and two other factors. One, some landlords expect too high a price for their property (while there is acceptance for rent increases amongst tenants, reasonable market rates do need to be considered). And two, the condition of a property. Again, as prices rise it is fair for tenants to expect a higher quality of property and better service to match.
Of the 479 properties we have let since May 2023, 52 of them were let prior to the previous tenants vacating, minimising loss of rental income for those landlords. When taking into account with 10.57% increase in rent for all our let properties since June and 11% in our resigns in the same period, you can see that a majority of our properties are fairly priced at market rate and there is healthy demand for good quality rental properties.
While there is uncertainty arising from the recent 0.5% base-rate increase, this also presents an opportunity for those looking to sell. With solid rental growth in Manchester, deciding not to sell and renting out your property with Philip James could be the more fiscally sound option. All landlords new and old should be aware of our Rent Guarantee service, which secures your rent if a tenant defaults on their rent. At present, we have protected a total of £3.9m pa in rental income for existing landlords. A practical peace of mind for anyone considering adding to their property portfolio.
Our award-winning lettings and property management team use their insightful knowledge of the Manchester rental landscape to secure you the best tenants and rental incomes. With little sign of rental stock significantly increasing to meet demand and our processes, landlords can expect to see a continued rise in their investment yields into the coming months and years.
‘As we rapidly approach the Summer peak season, there is no time like the present to be a landlord and investor in Manchester. Strong yields, high capital growth, and unprecedented demand all point to this being the time to expand your property portfolio. Our Deansgate office is rapidly expanding to accommodate expected growth and provide the award-winning service our landlords have come to expect.’ James Woolley, Lettings Manager