The Mancunian Way: The only way is up… or is it?

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Over the years, successive Labour leaders in Manchester have largely followed the same approach to housing. From current council chief Bev Craig, to predecessors Richard Leese and Graham Stringer – the belief has been that embracing private development is the way to meet the city’s housing needs.

In a supply and demand economy, the assumption was that if the market for new homes is met, lower prices will follow. But a report published this week counters that view^[1].

Despite building more than 24,000 new homes since 2017, the city still has a housing crisis. And skyscrapers filled with luxury apartments are in fact driving up rents across Manchester, the report found.

And it’s not just in the city centre either. Data suggests some of the biggest increase in rents have been in areas where housing has been traditionally been fairly cheap, places such as Longsight^[2], Moston^[3] and Gorton^[4] & Abbey Hey.

Here local democracy reporter Ethan Davies examines a report that could have far-reaching implications for the city’s housing policies…

I’ve lived in town for a few years now, and the one constant has been the change in the skyline. It seems like Manchester has an unmatched ability – in England, at least – to surprise you with a new 40 or 50 storey skyscraper every couple of months.

With that, inevitably, came the debate over who is really benefiting from such development. Renters’ rights groups and left-wing Labour politicians are confident it’s the developers and investors alone. Others towards the centre of the political spectrum often say any new homes will add to supply overall, helping cater for demand.

Traditional economic thinking tells us that adding supply lowers prices. But this new report suggests that Manchester – a city of firsts like the suffragette movement – has another novelty on its belt: Adding supply is leading to increasing rental prices.

As the council paper says, the issue is what’s being constructed. The build-to-rent sector (BtR) in Manchester is primarily focused on the ‘top of the market’ – i.e. the luxury flats seen in Deansgate Square, Viadux 1, and others.

The dominance of luxury BtR flats, combined with an overall lack of supply across the city, means the skyscrapers have ‘the perverse impact of new supply ostensibly adding to the inflationary pressures’. But that’s not even felt most acutely in the areas with skyscrapers – it has ripple effects to the suburbs, so places like Longsight, have seen a 14.7 percent increase in rents every year since 2019

Gavin White, the councillor charged with delivering Manchester’s housing strategy of building 36,000 homes by 2032 – 10,000 of which need to be affordable – was put on the spot after the report’s publication. Under questioning, he insisted the answer is to continue to build all types of BtR homes – both luxury and normal.

Whether he’s right or not remains to be seen. But the report does further highlight how different Manchester’s property market works to other UK cities – and the question of who it works best for remains.

Weather etc

Thursday: Overcast, 19C.

Roadworks: There are temporary traffic lights due to roadworks on Cromwell Road near Seaford Road in Salford.

Manchester headlines

Crash death: A 33-year-old man has died from his injuries after being hit by a ‘speeding’ car as he crossed the road in Longsight on Monday night. Police believe the car was being driven at speed and on the wrong side of the road when it struck the pedestrian near Anson Road. Two men, aged 19 and 21, have been arrested on suspicion of causing death by dangerous driving.