Growing visitor numbers and sustained economic investment has ensured cities such as Manchester continue to see demand for short-term rental property.
- Letting agents in the north-west of England reported the largest increase in demand for short-term lets in June, with 43% seeing an uplift in enquiries
- Cities such as Manchester have fast growing populations and are benefiting from multi billion pound government investment schemes such as the Northern Powerhouse
- Short-term lets are favoured by both tenants and property owners
Should buy-to-let investors focus their attention on property with short-term lets?
Demand for short-term lets across the country rose by 33% in June, according to the latest figures from the Association of Residential Letting Agents (ARLA). However it was registered ARLA members in the north-west of England that reported the sharpest increase in tenant demand for short-term lets at 43%.
The region is home to cities including Liverpool and Manchester, with the latter named by HSBC earlier this year as the UK’s number one buy-to-let hotspot. Manchester is also the largest economic area outside of London. Growing numbers of travelling business visitors has contributed to short-term accommodation types in the city, such as hotels and serviced apartments, reaching record occupancy levels in May, representing a clear undersupply of property with short-term lets.
The demand for this kind of property will only become more pronounced in the coming years as a result of sustained economic investment, including the UK government’s Northern Powerhouse plans, in which Manchester will play a pivotal role.
These short-term tenancies last less than 90 days and are often favoured by both tenant and property owner. That’s because yields are generally higher than with standard residential property, while the tenant can achieve greater affordability than if they’d chosen an alternative to a short-term let, such as a hotel.