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News Release

Manchester and Liverpool

City centre residential lettings bloom amidst the gloom

Latest Jones Lang LaSalle research reveals resurgent Manchester and Liverpool markets


Manchester & Liverpool, 20 November 2012 –Lettings and rental values have surged in Manchester and Liverpool this year according to the latest research by property consultant Jones Lang LaSalle.

In Manchester the total number of lettings has increased 11 per cent year on year with applications up by seven per cent and rental values increasing by nine per cent.
 

 

Jones Lang LaSalle’s lead director on residential in the North West, Steve Hogg, says that in Manchester supply is now struggling to keep pace with demand.

 

 
In its latest ‘Residential Eye’ research report, Jones Lang LaSalle says that is expecting Manchester’s city centre rental values to rise by 3.5 per cent in 2013, while in Liverpool it is forecasting a rise of 2.0 per cent.
 
In Liverpool the levels of new tenants seeking properties to let has increased by around five per cent in 2012, which has eaten up  available supply and driving up rental values by between three and five per  on average.
 
However, Jones Lang LaSalle says that with such shortage of available properties the ‘churn’ of tenants moving from apartment to apartment has significantly dropped causing a positive increase in length of tenancy term, and an actual, but marginal, reduction in new tenancies being sought by existing occupiers.
 
Steve Hogg, said: “The residential development tap was turned off so quickly in Manchester at the advent of the global financial crisis that the supply of new build space is now lagging behind the market.
 

 

“The city’s economy has weathered the recent years of stagnation relatively well while its population has continued to increase, meaning that the market now awash with opportunities for developers and buy-to-let investors.
“This year we saw Lend Lease bring forward its landmark Cypress Place scheme - which is over 60 per cent let in just over three months since completion – while other developers are now dusting off their plans ready to return to Manchester once again.”

 

 
Martyn Green, director, residential, at Jones Lang LaSalle in Liverpool, added: “This year has signalled a real change in the fortunes of Liverpool’s lettings market and its future prospects are very healthy with an ever increasing demand for city centre living and the availability of quality space.
 
“This strength has been highlighted by the interest of major developers in the city, underlined by Delph’s first venture into the North through its purchase of West Tower, while other major schemes like Mann Island and East Float continue to attract significant interest.”​