An exodus of students from shared houses to purpose-built halls has sparked a £9 million sale of homes in a leading university city.
Landlords have put 40 houses in multiple occupation (HMOs) on the market in 17 Manchester streets.
The landlords have decided to quit the student shared house market in the face of competition from the halls.
The homes are for sale in three lots in the Withington, Fallowfield and Victoria Park neighbourhoods.
Prospective purchasers can expect to pay between £2 million and £3.8 million for each portfolio.
Together, the HMOs offer 170 bedrooms for students attending Manchester’s higher education institutions.
Residents are cheering the sale – providing most of the homes are converted to family accommodation after years of protests and complaints about rubbish, noise and parking problems.
On one street, Manchester City Council took enforcement action against the owners for illegally extending the homes to provided extra accommodation without planning permission.
Sales particulars for one of the three lots, comprising 10 shared homes with 55 bedrooms selling for £3.1 million, details the potential rental income is £175,000 a year
Anne Tucker, a member of the Platt Lane and South Rusholme Residents Association, told the Manchester Evening News: “I think some landlords thought they could make a quick buck renting houses out to students but in our street two had to move...
tenants out because they were too damp to live in and a lot of them are getting very tatty.
“We would love more of the houses in our area rented out to families.
“The students themselves are lovely but the problem is in summer when they all leave and it’s like a ghost town.”
Councillor Nigel Murphy, executive member for housing and regeneration, said: “We believe the demand for purpose-built student accommodation is there and at the moment, the balance with supply is about right.
“The knock-on effect of that is less demand in traditional student areas. We want to encourage students to move into purpose-built accommodation to get a balance in neighbourhoods.”©LandlordZONE® – legal content applies to England and is not a definitive statement of the law, always seek professional advice. If you have questions on these issues go to the LandlordZONE® Forums