Private renting in Manchester is at ‘boiling point’ as tenants spend almost half of their disposable household income on rent

Private renters in Manchester are being hit harder by private rent rises than in any other North West city, new figures show.

Rental prices in Manchester have risen by 12.4% in just one year, from an average of £1,004 in 2022 to £1,128 in 2023, according to data from the Office for National Statistics (ONS).

The increased cost accounted for more than 43% of renters’ disposable household income – an increase of 4.7% – according to ONS data.

This is much higher than the national average increase in monthly private rent as a percentage of disposable household income, which was 2.3% – Manchester saw the biggest rise outside London.

Manchester also had higher rent increases than nearby northern cities such as Liverpool, which saw its average monthly rent rise by 12.1%, from £674 in 2022 to £756 pounds sterling in 2023.

Manchester renters saw an average expected rise of £124 per month in 2023, with rent increases affecting around 13% of all Manchester households.

As part of the report, the ONS assigned each area in England and Wales an “exposure score” compared to other local authorities, with seven being the highest score and one the lowest, based on the proportion of households affected by rising costs and how much the increased cost has decreased household disposable income.

These measures give Manchester a score of seven out of seven – the highest possible result.

John Ryan, head of services at housing charity Shelter, said: “Private renting in Manchester has reached boiling point.

“Every day in our services we hear from families struggling to keep a roof over their heads after being handed yet another rent increase they simply can’t afford.

“The only sustainable solution to Manchester’s housing emergency is for all political parties to commit to building truly affordable social homes with rents linked to local incomes.”

Shelter is calling on the government to “revise the Tenants (Reform) Bill so that it provides real safety and security for tenants”, along with removing section 21 evictions, “to enable tenants to challenge unfair rent increases without fear to be hit by a retaliatory eviction”. .

Figures have increased in all ten Greater Manchester boroughs between 2022 and 2023.

Salford saw around 11% of households affected, with an estimated average increase of 11.0%, rising from £849 to £954.

This gave the area an “exposure score” of six out of seven, with private renters in Salford spending more than 35% of their average disposable income on housing costs.

Tom Ghirardi, 30, originally from London, has been living in a one-bedroom flat in Salford Quays for about three years.

He has seen his rent rise steadily since he first moved in and currently spends about 40% of his income on rent.

He said: “My rent rises have not been as severe as others but, combined with the cost of living crisis, it has taken a lot of my disposable income.

“I have no one to share the rent and bills with, so any increase in my expenses has a big impact on my life.

“I’m not able to socialize as much as I used to and I’ve had to give up the hobbies I used to do because of finances.

“Saving for my future is incredibly difficult; like a lot of people, I’m struggling to see a way to get on the property ladder.”

Harry Jones, 27, who lives in Salford, echoed this experience.

The Manchester city center worker said: “I’m at an age now where I want my own space. I don’t want to have to keep living with friends just because I can’t afford to live alone.

“My flatmate is moving out soon and even studios are around £1,000 a month.

“I could move to the outskirts, maybe Stockport or Prestwich, but even the prices there aren’t that much lower and with the extra cost of the commute it wouldn’t really save me.

“I chose to stay in the two-bedroom apartment we’re currently in because the location is good and I’m really not going to get anything cheaper nearby.

“About 45% of my monthly salary will go on rent and then I have bills.

“I cut back on socializing to help save money. My friends and I are more likely to go to each other’s places for food or watch TV together than to go out.”

The problem affects not just Greater Manchester, but the entire North West region, which saw a higher average increase in monthly private rents than any other region in England and Wales, increasing by 12.4% between 2022 and 2023.

Rosi Avis, head of partnership and communications at Citizens Advice Manchester, said: “We are seeing an increasing number of people in the private rented sector coming to us concerned about rent rises, levels of dilapidation and facing Section 21 evictions.

“It is clear that the problems facing private tenants have never been worse, and it is therefore vital that we strengthen their rights and protections through the Tenants (Reform) Act.”

A Section 21 notice – also known as a ‘no-fault eviction’ – allows a landlord to evict a tenant without giving a reason by giving them two months’ notice after the end of the fixed-term contract.

Andy Burnham, the newly re-elected mayor of Greater Manchester, has shared his ambition to end Greater Manchester’s housing crisis within a decade and to soon open the new GM Good Landlord Charter for applications, setting standards for private rental properties and supporting the owners to meet them.

Speaking at the election statement on May 4, Burnham said: “My new plea to Westminster is to give us the powers to free ourselves from the grip of the housing crisis.”

According to Propertymark – the UK’s leading professional body for estate agents – 72% of landlords are concerned about the removal of Section 21, 69% of landlords are concerned about ending fixed-term tenancies and 62% of landlords are concerned about review clauses the rent. being removed.

Propertymark CEO Nathan Emerson told MM: “The problem we have at the moment is not going away any time soon.

“There is not enough social housing to meet demand, leading to greater reliance on the private rented sector, which is where many people end up.

“For those who own rental properties, it’s not cheap because of the maintenance and all the other things that fundamentally need to be done to keep the house in a good enough condition for someone (tenants) to live in – it becomes more expensive for everyone involved .

“Many landlords only have one to three properties – they’re not people with millions to spare as everyone thinks.

“Many are having to subsidize property repairs out of their own earnings and income, not necessarily based on the margins that properties create in the first place.”

Emerson also criticized the idea of ​​rent caps: “I don’t know where a rent cap has ever worked.

“It’s a great short-term argument and a big vote-getter, but it doesn’t address the overall problem and it just keeps growing. Rent caps are a brutal wrecking ball in the very short term.

“What ends up happening is people aren’t investing in property the way they used to.”

Tenant Tom adds: “Rents (in Manchester) are still cheaper than my hometown of London, but they only seem to be going up and the cost of day-to-day living in Manchester is no different to the capital now.

“If it continues to grow, I would have no choice but to look further.”

Images: Lisa Valentine