Costing Manchester’s residential future
Despite the UK’s shifting political landscape, the growing demand for affordable homes and community-based facilities continues to drive development in Manchester. Regional Leads Rob Mills and Richard Green discuss the market, setting out a cost model for a residential scheme in the city.
Following record levels of development in 2018, Manchester’s continued regeneration as a modern, outward-looking urban hub offers a wealth of development opportunities. With a rising population, driven in part by its graduate student community, Manchester’s residential sector, especially in terms of housing demand, remains strong. But, with the UK’s continued economic uncertainty a factor, here are four possible solutions to help developers and contractors weather the potential storms ahead.
1/ BTR: achieving affordable housing
Build to rent (BTR) schemes — focused around tenants’ needs for accessible housing, financial viability, and emphasis on amenities and quality service provision — have experienced significant growth, from family-sized units to serviced apartments, in Manchester.
The whole lifecycle nature of BTR schemes offers contractors and developers possible long-term income streams and low running costs to provide consistent returns to investors. These can be further amplified by risk-reducing innovative delivery models that combine local knowledge, commercial expertise and equity support.
2/ Opening up brownfield sites
Under consultation, the Greater Manchester Spatial Framework (GMSF) includes plans to deliver 50,000 affordable homes by targeting brownfield land. New concepts, combining light-industrial spaces with residential mixed-use developments, could help stimulate investment in the city’s periphery.
3/ Policy frameworks and masterplans
By engaging more closely with local and national programmes, contractors and developers can accelerate land access for mixed-use schemes that bring together affordable housing and employment opportunities with open spaces, and work to avoid costly planning and policy changes.
4/ Infrastructure to drive investment
Transport-orientated development is a must, with Transport for the North’s plans for the region expected to bring as much as £100 billion in economic growth and 850,000 jobs — further driving residential demand and a continued pipeline.
Our cost model explores the expanding role residential plays in regional development, assessing the key cost drivers involved in a medium-quality build-to-rent multi-block project comprising of 480 units across two residential towers.
Download the cost model here.