Reduction in the construction of private and Housing Association properties has led to the continued rise of PRS – and it shows little sign of slowing down.
Home to the world’s first purpose-built industrial suburb, Manchester was the birthplace of the Private Rented Sector. In order to appreciate the growth of PRS it’s essential to understand the history of the rental housing market…
Ancoats in Manchester was the world’s first industrial suburb; large factories and workshops stood cheek-by-jowl with poorly-constructed back-to-back houses for the working classes.
In 1889, a report by Dr John Thresh on 36 acres adjacent to Oldham Road detailed 25 streets, many less than 17ft wide, with houses, mostly over 70 years old. Manchester City Council (est 1838), declared it an ‘Unhealthy Area’ and in a bid to clear and rebuild, a total of 1250 people were displaced and 239 dwellings demolished.
By 1914 most of Manchester’s back-to-backs and courts had been cleared or renovated – the Council had demolished 27,000 slums – a record unmatched by any rival industrial city.
In 1894 Manchester City Council began to replace the slums with the world’s first municipal housing, Victoria Square. Designed by Henry Spalding the building housed 825 people in a mixture of single rooms, double rooms and tenement flats.
As a result of their relatively high rents (Thompson described Victoria Square as being ‘occupied by a good class of tenants’), neither block was fully occupied in their early years. Stung by this failure, the City Council would build only one other block before 1914.
RIGHT TO BUY
In 2014 Britain is building fewer new homes than in 1926. Lack of supply and dwindling numbers of first-time-buyers is fuelling demand for the Private Rented Sector.
When Margaret Thatcher introduced the controversial ‘Right-to-buy’ scheme in 1980 the average property price in Britain was £23,500; 35-years later the figure stands at a whopping £181,000.
Colossal price rises have rewarded many with life-changing windfalls yet left others permanently trapped in the perilously-fragile private rental market. The 2015 Conservative government’s recent plan to extend Right-to-buy to Housing Association tenants has further serious ramifications.
THE BENEFITS OF PRS
Renting can become a “lifestyle Choice”. Residents will now have access to locations and a lifestyle they would not be able to achieve as buyers.
Private Rented Communities – “building communities, not just housing” – focused on customer service. Tenants are referred to as residents of the community or customers.
Purpose built properties will be designed and built with long term rental in mind. The size and shape of the apartments are focused on practical spaces and natural light – not maximising the space and profit per sq ft.
Buying a house / starting at the bottom of the property ladder has risk associated; “Are we buying at the bottom or the peak of the market”? Why rent in an undesirable area in order to save a deposit to buy a house in a less desirable area?
LOFT INTERIORS UNDERSTAND PRS
PRS means more than just Private Rented Sector. For Loft Interiors it’s also about Product, Resource and Service…
- LOFT Interiors has a long-established trading history and a wide network of trusted suppliers. This increases our buying power and guarantees we remain the most competitively priced furnishing company in the PRS sector.
- Our buyers source both nationally and internationally ensuring we are leaders in the field when it comes to the latest designs and trends and enabling us to provide a full catalogue of products and services.
- Our Quality Control Officers ensure all our products are both compliant with current UK legislation and meet our own stringent standards.
- We have formed a partnership with J and J Ormerod PLC ( JJO ) for the provision of bespoke furniture solutions, kitchens, bedrooms and bathrooms.
- Based just 30 miles from our Ayres Road showroom, JJO boasts one of the most advanced panel processing operations in Europe.
- Production capacity is 10,000 panels per day, which translates to 500 kitchens, 150 bathrooms and 100 bedrooms per week.
- With over 30,000 sqft of storage space LOFT Interiors are able to hold a wide variety of products in stock and facilitate a next-day delivery service our customers have come to rely on. This enables us to buy products in bulk and secure the best possible prices for our customers.
- The vast warehouse resource has increased efficiency and organisational capability, resulting in optimum productivity.
- Our in-house fleet of delivery vehicles allow us to fulfil a myriad of orders from emergency same-day delivery to volume orders delivered to a client’s tight schedule.
- We offer a next day delivery service nationwide, contacting tenants directly to arrange a convenient time slot or collecting and returning keys at an agreed location.
- Environmentally conscious, we plan our delivery routes in the most efficient way possible to minimise our carbon footprint.
- We are renowned for our delivery, assembly and installation service providing a hassle free furnishing solution to property professionals. All furniture is placed appropriately in its designated room and dressed so that the property is left tenant-ready.
- Our professional, uniformed and experienced installation team are CSCS accredited and provide an efficient service from initial brief to installation, liaising with suppliers and sub-contractors and ensuring every project runs smoothly.
- With a dedicated after care team, any issues are resolved in a timely fashion to guarantee customer satisfaction.
- All products are designed and sourced for the buy to let industry to withstand the rigours of tenant use. With manufacturer guarantees of up to 5 years, and structural lifecycles of up to 15 years. We offer a remove and refresh service – once the project has completed, extra or replacement items are provided with the same efficiency and speed experienced during installation.
Article Courtesy of: Loft Interiors