Increased demand for shared homes arises from growth in nearby employment opportunities in local industries
Boom in Shared Housing Demand in Barrow-in-Furness
Barrow-in-Furness, a town undergoing significant transformation, is experiencing a surge in demand for shared homes. This trend is primarily influenced by the thriving local industry and ongoing urban redevelopment.
According to Beverly Louw, of Larimar Property Management, the Barrow-based organization is constantly inundated with requests for accommodation. With over 70 Houses in Multiple Occupation (HMOs) under its management, Larimar is at the forefront of catering to this growing demand.
The town's housing market is characterized by moderate prices, with an average home price hovering around £187,987, though some sources report averages closer to £130,000. Terraced houses remain the most common sales, while detached houses average about £222,500, and flats are significantly lower at around £67,000. The time on market averages approximately 11 weeks.
The high rental demand, particularly for more affordable homes, is driving strong rental yields over 8%. This trend is evident in the investment properties managed by Larimar, which are favoured for shared housing or multi-occupancy arrangements, especially among workers in sectors like industry where affordable living is crucial.
Barrow-in-Furness is undergoing a multi-million-pound town centre transformation, aimed at improving housing, retail, leisure, health, and education infrastructure. These regeneration efforts are expected to further increase demand for shared homes as industrial jobs and economic activities develop.
The increase in workers is due to BAE Systems winning a contract to build a new generation of nuclear-powered submarines. This is part of the UK's Aukus security pact with Australia and the US. BAE Systems' new submarines will be the largest, most powerful, and advanced attack submarines the Royal Navy has ever operated.
The local industry includes companies such as the BAE shipyard, and the port town of Barrow-in-Furness now has 80 HMOs, compared to only one just a year ago. Hartington Street, home to 10% of the registered HMOs in the area, is a testament to this growth. Traditionally large Victorian houses in this street have been split into bedsits, flats, and rooms in shared houses to accommodate the growing demand.
Rent for rooms in Larimar's HMOs ranges from £130 to £140 per week, with bills included. The main market for Larimar Property Management is the contractors moving into the area, with the majority of requests for accommodation coming from people connected to BAE Systems, as well as from those associated with the 'gas terminal, wind farms,' and Kimberly-Clark.
In summary, the combination of industrial jobs, ongoing urban redevelopment, and the resulting demand for affordable housing is leading to an increase in demand for shared homes in Barrow-in-Furness. This trend is expected to continue as the town's regeneration efforts progress and the local industry continues to grow.
- The growth in Barrow-in-Furness' shared housing market can be linked to the booming local industry, particularly BAE Systems' contract to build nuclear-powered submarines and the subsequent increase in workers.
- As Barrow-in-Furness continues to undergo redevelopment, the demand for shared housing is likely to persist, attracting investors in the finance sector, given the high rental yields and the affordable nature of shared housing, which caters to a significant portion of the energy industry workforce.
