Trafford Housing Trust

Client

Trafford Housing Trust

Brief

Trafford Housing Trust wanted to deepen its understanding of the housing markets in Greater Manchester and Cheshire; and, in particular, of how adjacent housing markets operated, and compared with Trafford in terms of sales and the private rented sector (PRS).
It also wanted to be able to compare its performance with other similar housing associations and PRS ventures.
The trust identified four specific areas of requirement, which included:

  • A review of delivery and funding models in the PRS
  • A review of the new build sales market
  • A review of the PRS in Trafford
  • A review of the sales market in Trafford

What we did

Arc4’s role was to carry out a detailed review of the Greater Manchester and Cheshire housing markets, reported by local authority.

We provided details of how other registered housing providers had moved into the PRS, covering: the scale of investment that had been required, the funding sources that had been drawn upon, and the delivery and management models that were used. The primary focus was on examples within the North West, however we also widened the review to also include other innovative models worthy of recognition.

In terms of sales markets across the Association of Greater Manchester Authorities (AGMA) and Cheshire, this was approached in terms of developer market share and products being offered. We then presented the trust with a strategic review designed to provide a clear understanding of the market in a reasonably short timeframe - offering the best value for money.

We also undertook a review of the PRS markets since 2009 covering:

  • How and why the PRS markets are growing
  • The total number of properties that have come onto the PRS market in each ward
  • The total number of properties that have come onto the market in each ward by property type and size, and as a percentage of the total PRS
  • The average rent per property type in each ward, and by property type and size plus rent changes
  • How many properties were below or equal to the local housing allowance (LHA) for each area; and of these, what type of properties they were, by type, bed size and location by ward.
  • Affordability of properties and locations for economically active households
  • Average time to let property in weeks on the market by location, property type, size and rent level
  • Rental yields for different locations and for different property types
  • Imbalances between supply and demand
  • Details of letting agent market share

The trust was particularly interested in understanding the sales market, and a review was undertaken into:

  • The growth / decline in owner occupation in Trafford: Arc4 provided an overview of how markets are changing, and particularly, whether owners are selling or converting stock to the PRS.
  • The total number of properties that have come onto the market in each postcode area and market areas
  • The total number of properties that have come onto the market in each ward, by property type, size and as a percentage of the total owner occupied stock
  • The average asking price and price achieved per property type, in each ward and by property type and size, plus price change
  • Affordability of properties and locations for economically active households
  • Average time to sell property (measured in weeks on the market) by location, property type, size and price level

The Result

The trust was provided with a detailed review of how it performed compared with other associations, developers and the PRS; and was able to use this information to identify new business opportunities.

Sector