
Chips, New Islington, Manchester
We have been having a housing crisis for years. The difference now is that there is a total lack of finance for new building, particularly for building in big centres like Manchester.
Far from cities having an oversupply of accommodation we are seeing huge and constant demand for the housing that is available and rather than a glut there’s a short fall and it’s not going to ease any time soon. Even if a major new building was to start tomorrow it would be three or four years before it came to market - and there is little sign of anyone starting tomorrow.
The lack of finance has crippled buyers as well as builders and maybe it’s time we reassessed how housing is provided in Britain.
Brits have a peculiar desire to own their own home but it’s an attitude that’s changing. It may have been borne out of necessity but for many people renting is now the preferred option and we should be doing more to accommodate that shift.
Increased mobility for work, the costs of moving, difficulty in securing finance, the freedom to quickly change accommodation costs if circumstances change are all making sense to a new generation and we have to respond.
The UK rental market has to become much more professional and better policed. Tenants have to know that the place they are renting will be permanently available and that the landlord won’t suddenly decide to sell up and buy a place in Spain.
Just because you can’t or don’t want to buy a place of your own does not mean you should not have a place of your own and we need to address that if we are to address the housing crisis.
At Urban Splash we currently have around 400 apartments to rent and we are looking to double that in the next two years. We want to build up a brand of homes that will be permanently for rent, managed in-house by us, and sprinkled through our developments.
There needs to be more institutional investment in residential development such as they have in most of the other European cities. People who like the idea of investing in property may not want to tie themselves to one individual apartment but would be happy to be part of a larger fund.
The yields may not be that huge at the moment but there is vast potential and the funds would create a new asset class, investing in the future housing infrastructure of the country, building high quality, well managed blocks to rent out.
It is time that the Government looked to giving tax breaks to companies and individuals prepared to invest in schemes like this. It helped before with the Business Expansion Scheme and it could be a way to re-invigorate the market again.
But unlike in the past homes for rent should not be second best or inferior. What separates Urban Splash from others is our ability to build great buildings (not one to brag but 300 awards at the last count) and the way we can transform areas such as Castlefield and New Islington.
In cash rich Monaco most people rent, in New York properties are only available to rent and in Europe renting is the norm. I see Britain going the same way but it needs a structural change to make it happen.
This first appeared as an opinion piece in M.E.N. Business Weekly on 19th January 2011.










