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.

Rt Hon The Lord David Blunkett

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

»www.residemanchester.com

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