Increased demand for shared homes arises from growth in local employment opportunities in the industry sector
In the bustling port town of Barrow-in-Furness, a significant shift has been underway, with the rise of shared homes becoming a prominent feature of the local housing landscape. This trend appears to be closely linked to the town's growing industries, particularly the submarine-building operations of BAE Systems and other local companies.
Economic and employment factors driven by industrial activity have played a primary role in this correlation. BAE Systems, a British multinational company, employs approximately one-third of Barrow's working-age population, offering above-average salaries relative to the region. This industrial growth and investment have led to a partnership called Team Barrow, securing £220 million to improve housing, transport, and public spaces, including upgrades and new developments to support the workforce and associated communities.
The influx of skilled workers and trainees attracted by BAE and the supporting educational infrastructure, such as the University of Cumbria's new campus, has driven demand for local housing, including shared homes. These housing options are often more affordable or practical for workers and trainees relocating or on limited budgets.
Historically, Barrow's population growth was closely tied to industrial booms, with terraced homes being built to house workers during earlier shipbuilding expansions in the 19th century. In the contemporary context, rising industrial employment, including at BAE, encourages an increase in shared living arrangements as people seek affordable housing close to work, supporting local companies and the economy.
However, Barrow has also faced economic challenges and population decline due to industrial downturns and limited economic diversification, impacting the housing market with some falls in property demand and prices. Nevertheless, current industrial growth related to BAE and other companies contributes to regeneration efforts and is likely linked to a rise in shared homes as a practical housing solution for industrial workers and trainees.
Beverly Louw, of Larimar Property Management, a Barrow-based organization, has witnessed this trend firsthand. "We are always inundated with requests for accommodation," she said. As a result, the town now boasts 80 houses in multiple occupation (HMOs), a significant increase from just one a year ago. Hartington Street, in particular, has 10% of the registered HMOs, with traditional big Victorian houses being split into bedsits, flats, and rooms in shared houses.
Rent for rooms in these HMOs ranges from £130 to £140 per week, with bills included. The majority of accommodation requests for Larimar Property Management come from people connected to BAE Systems, as well as the 'gas terminal, wind farms,' and Kimberly-Clark. The organization's main market is the contractors moving into the area. Larimar Property Management currently manages more than 70 houses that are HMOs.
The increase in HMOs is attributed to the demand from contractors working in local industry. This demand is set to rise further, with BAE Systems announcing in early 2024 that they will be adding 5,000 workers to their existing workforce of 12,000 in Barrow-in-Furness. This addition is due to BAE Systems winning a contract to build a new generation of nuclear-powered submarines, which is part of the UK's Aukus security pact with Australia and the US.
BAE Systems claims their new submarines will be the largest, most powerful, and advanced attack submarines the Royal Navy has ever operated. This continued industrial growth is expected to further fuel the demand for shared homes, continuing the symbiotic relationship between Barrow's industries and its housing market.
- The growing demand for local housing, particularly shared homes, in Barrow-in-Furness can be attributed to the influx of skilled workers and trainees, driven by industrial growth and investment, such as that from BAE Systems, which offers above-average salaries.
- The economic regeneration efforts in Barrow-in-Furness, including the £220 million partnership to improve housing, transport, and public spaces, have been influenced by industrial growth and investing in real estate, making shared homes a practical housing solution for the industrial workforce.
