Reside Manchester

A Message from Lord Pickles and Lord Blunkett, followed by Reside Manchester's best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Reside Manchester is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Blunkett signature Rt Hon The Lord David Blunkett
Pickles signature Rt Hon The Lord Eric Pickles

www.residemanchester.com

THE PARLIAMENTARY REVIEW
Highlighting best practice
THE PARLIAMENTARY REVIEW
Highlighting best practice
18 | RESIDE MANCHESTER
Managing Director
AnthonyStankard
Broadside, New Cross,
for AIG
Reside Manchester is an independent estate agency
located in the heart of Manchester’s city centre. Its focus,
says Managing Director Anthony Stankard, is to be at
the forefront of the residential development in and around
Manchester. Anthony tells
The Parliamentary Review
that
Reside offers intelligent, researched and honest advice to all
its clients – whether they are developers, investors, buyers,
sellers, landlords or tenants. He discusses Reside’s work across
Manchester and talks at length about new legislation affecting
the sector.
Established in 2013, we have grown from a team of three to our current team
of 12 professional consultants. We offer a full range of client services from
initial viability consultancy to running and managing new homes developments
throughout the city centre, all from our offices on Deansgate. We are on track to
hit the £1 million turnover mark this year in our sixth year of trading.
We offer the full range of estate agency services, from second-hand sales to a fully
managed rental portfolio for individual landlords located all round the world.
We work with new home developments for major clients through to local
developers and are currently acting for the Abu Dhabi United Group and
Manchester Life Development Company in the regeneration of Ancoats and New
Islington in east Manchester. We are also very proud to advise institutional funds
on the built to rent market currently thriving within Manchester, and are currently
advising AIG on their forthcoming Broadside development in the New Cross area.
FACTS ABOUT
RESIDE MANCHESTER
»Managing Director:
AnthonyStankard
»Founded in 2013
»Located in Manchester
»Services: New homes, second-
hand homes and rentals
»No. of employees: 12
Reside Manchester
19RESIDE MANCHESTER |
HOUSING
Tenancy agreements
In 2019, there were plenty of changes
and challenges for the estate agency
industry. June saw the introduction
of the Tenant Fees Act, which the
government introduced to effectively
stop charging tenants fees in respect
of referencing, administration, drawing
up tenancy agreements and all other
costs related to the initial renting of
aproperty.
While in principle the intention
to reduce initial upfront costs to
prospective tenants is laudable, many
of these initial costs are necessary, such
as referencing and right-to-rent checks.
Therefore, these necessary costs will
now be passed on to landlords. The
effect of this act will be to push rents
upward, thereby not helping a tenant’s
financial status in the mid to long-
term whatsoever. Landlords will look
to recoup these costs in the only way
now available to them – increasing the
rent at renewal or new tenancy stage.
The buy-to-let market has seen a
significant decline in transactions in
recent times. This is primarily due to
the changes in government taxation
policy, including the cessation of
mortgage interest, tax relief and the
stamp duty surcharge on investment
properties, making further investment
in the residential market less
favourable for individual landlords. This
also actively encourages institutional
landlords to step in to solve the
housing crisis with an ever-growing
emphasis on the build-to-rent market.
Furthermore, with the burden of
increasing regulation, to include new
EPC regulations, Section 21 changes,
the aforementioned Tenant Fees Act
and licensing in many areas, we are
seeing fewer individual landlords
entering the marketplace and an
increasing number exiting the market,
benefiting from substantial capital
gains and selling up.
On the market
This previously envisaged source of
cheaper older, rental stock was in
theory meant to furnish the first-
time buyer sales market, and keep
the whole market moving. With the
tightening of the mortgage market,
however, along with stricter lending
policies surrounding exterior rainwater
cladding, ground rents and overseas
investor take-up, this intended
consequence has not been seen.
Indeed, the volume of transactions has
fallen, with the market expected to
slow down further.
If this older, previously rented stock
does cascade down into the sales
market, it will remain in the rental pool
and restrict the flow of tenants toward
the institutional build-to-rent stock,
hindering the market.
The government backed the Help
to Buy scheme, which also ceases
in its current format in April 2020,
thereafter, only being available to
first-time buyers rather than home
movers. The latest statistics from the
government’s website confirming
46,302 transactions were completed
in 2017, of which 37,481 were
completed to first-time buyers.
Thismeans we will see a 20 per cent
Excelsior in Castlefield,
by Mulbury City
Policy alone
cannot solve
the housing
crisis; in fact,
it often makes
matters
worse
BEST PRACTICE SPONSOR 2020
19RESIDE MANCHESTER |
HOUSING
Tenancy agreements
In 2019, there were plenty of changes
and challenges for the estate agency
industry. June saw the introduction
of the Tenant Fees Act, which the
government introduced to effectively
stop charging tenants fees in respect
of referencing, administration, drawing
up tenancy agreements and all other
costs related to the initial renting of
aproperty.
While in principle the intention
to reduce initial upfront costs to
prospective tenants is laudable, many
of these initial costs are necessary, such
as referencing and right-to-rent checks.
Therefore, these necessary costs will
now be passed on to landlords. The
effect of this act will be to push rents
upward, thereby not helping a tenant’s
financial status in the mid to long-
term whatsoever. Landlords will look
to recoup these costs in the only way
now available to them – increasing the
rent at renewal or new tenancy stage.
The buy-to-let market has seen a
significant decline in transactions in
recent times. This is primarily due to
the changes in government taxation
policy, including the cessation of
mortgage interest, tax relief and the
stamp duty surcharge on investment
properties, making further investment
in the residential market less
favourable for individual landlords. This
also actively encourages institutional
landlords to step in to solve the
housing crisis with an ever-growing
emphasis on the build-to-rent market.
Furthermore, with the burden of
increasing regulation, to include new
EPC regulations, Section 21 changes,
the aforementioned Tenant Fees Act
and licensing in many areas, we are
seeing fewer individual landlords
entering the marketplace and an
increasing number exiting the market,
benefiting from substantial capital
gains and selling up.
On the market
This previously envisaged source of
cheaper older, rental stock was in
theory meant to furnish the first-
time buyer sales market, and keep
the whole market moving. With the
tightening of the mortgage market,
however, along with stricter lending
policies surrounding exterior rainwater
cladding, ground rents and overseas
investor take-up, this intended
consequence has not been seen.
Indeed, the volume of transactions has
fallen, with the market expected to
slow down further.
If this older, previously rented stock
does cascade down into the sales
market, it will remain in the rental pool
and restrict the flow of tenants toward
the institutional build-to-rent stock,
hindering the market.
The government backed the Help
to Buy scheme, which also ceases
in its current format in April 2020,
thereafter, only being available to
first-time buyers rather than home
movers. The latest statistics from the
government’s website confirming
46,302 transactions were completed
in 2017, of which 37,481 were
completed to first-time buyers.
Thismeans we will see a 20 per cent
Excelsior in Castlefield,
by Mulbury City
Policy alone
cannot solve
the housing
crisis; in fact,
it often makes
matters
worse
THE PARLIAMENTARY REVIEW
Highlighting best practice
THE PARLIAMENTARY REVIEW
Highlighting best practice
20 | RESIDE MANCHESTER
reduction in these figures as home
movers will be excluded going forward.
With further fears over Brexit,
interest rate rises and the UK
economy as a whole, we are seeing
private rental stock being supplied
mainly by institutional investors and
pension funds. They market these
developments with an ever-growing
range of resident attractions and
amenities, not matched by the
individual landlord, and push rents
higher to attract tenants who want
this lifestyle. With these apartments
attracting a premium rent, however,
the ability to save a deposit to
eventually get on the housing
ladderdiminishes.
More than policy
There seems to be little thought or
consultation before these policies are
introduced. Anyone who has been in
this industry for a number of years can
see that policies such as the Tenant
Fees Act are initiated for the right
reason, but they are also perhaps used
to attract votes, and in reality often
have the very opposite effect than they
were intended to.
Policy alone cannot solve the housing
crisis; in fact, it often makes matters
worse. Instead we need radical
thinking and solutions, to include
affordable housing, Help to Buy and
investment in modular housing as well
as more green belt housing provision.
This ought to be coupled with sensible,
prudent banking and lending policies
and a change in national planning
policy so we may stand a small chance
of getting near to the government’s
own target of building 300,000 homes
per year, rather than the 165,000 in
2017 and similar in 2018 according
toONS.
Reside Manchester remains at the
forefront of the residential market
within Manchester city centre. We
will keep trying to offer sensible,
prudent and educated advice to all
our clients, in a residential climate that
continues to see much-needed stricter
compliance and regulation, as well as
keep operating within an uncertain
economic and political environment.
Reside
Manchester
remains at the
forefront of
the residential
market within
Manchester
city centre
Murrays’ Mills, Ancoats,
by Manchester Life
Development Company

www.residemanchester.com

This article was sponsored by Reside Manchester. The Parliamentary Review is wholly funded by the representatives who write for it. The publication in which this article originally appeared contained the following foreword from Rt Hon Elizabeth Truss.

Rt Hon Elizabeth Truss's Foreword For The Parliamentary Review

By Rt Hon Elizabeth Truss

Even by the standards of the day –this has been one of the most exciting and unpredictable years in British politics.

The leadership election we’ve just seen marks a huge moment in our country’s history. This government is taking a decisive new direction, embracing the opportunities of Brexit and preparing our country to flourish outside the EU.

As international trade secretary, I’ll be driving forward work on the free trade agreements that are going to be a priority for the government. Free trade isn’t just an abstract concept bandied around by technocrats. It is crucial for a strong economy and for the ability of families to make ends meet. Free trade benefits people in every part of our country, as British firms export to new markets and people doing the weekly shop have access to a wider choice of goods at lower prices.

The essence of free trade is in the title: freedom. It’s about giving people the power to exchange their goods without heavy government taxation or interference. Commerce and free exchange are the engine room of prosperity and social mobility. I’m determined to tackle the forces who want to hold that back.

One of my priorities is agreeing an exciting new free trade deal with the US, building on the great relationship between our two countries and the Prime Minister and US President. But I’ll also be talking to other partners including New Zealand, Australia and fast-growing Asian markets.

And with the EU too, we want a friendly and constructive relationship, as constitutional equals, and as friends and partners in facing the challenges that lie ahead – a relationship based on a deep free trade agreement. Our country produces some of the world’s most successful exports, and the opportunity to bring these to the rest of the world should make us all excited about the future. It is this excitement, optimism and ambition which I believe will come to define this government.

For too long now, we have been told Britain isn’t big or important enough to survive outside the EU – that we have to accept a deal that reflects our reduced circumstances. I say that’s rubbish. With the right policies in place, we can be the most competitive, free-thinking, prosperous nation on Earth exporting to the world and leading in new developments like AI. To do that, we’ll give the brilliant next generation of entrepreneurs the tools they need to succeed. Since 2015, there has been a staggering 85 per cent rise in the number of businesses set up by 18 to 24 year olds – twice the level set up by the same age group in France and Germany. We’ll help them flourish by championing enterprise, cutting taxes and making regulation flexible and responsive to their needs.

As we do that, we’ll level up and unite all parts of the UK with great transport links, fibre broadband in every home and proper school funding, so everyone shares in our country’s success.

2019 has been the year of brewing economic and political revolution. 2020 will be the year when a revitalised Conservative government turbo charges the economy, boosts prospects for people across the country, and catapults Britain back to the forefront of the world stage.



Rt Hon Elizabeth Truss
Secretary of State for International Development