Manchester Sees Oversupply of Rental Properties

The observers of the buy to let sector report that Manchester is suffering from the oversupply of rental properties, which was caused by developers constructing new properties at a rapid pace rather by “accidental” landlords, which are more common throughout the UK these days. The problem of the new flats, constructed by Manchester developers, is that buy to let landlords face difficulties buying them as mortgages are scarce. Given the above-mentioned circumstances, a large number of new-builds, located in Salford and at the Salford Quays stay unoccupied for long periods of time. Some developers have even come to a decision to suspend the construction of properties and even to abandon the construction projects until the UK economy shows signs of recovery. Another problem with the new-built flats in Manchester is their planning. The majority of flats are comprised of several small rooms rather than of large living areas. For instance, a typical planning of flat would feature 2 small bedrooms, 2 small bathrooms and a small lounge area. Buy to let landlords do not feel like buying these flats not only because they are difficult to let, but also because they are hardly being approved for a buy to let mortgage. The observes of the property say that developers might have hard time selling these flats even when the economic recession ends as landlords and homeowners are hardly inspired by such constructions, especially given a high supply in the area. Observes added that buy to let landlords, wishing to expand their portfolios, should focus on less expensive properties that young professionals might find attractive.