Manchester Property Market Report
Other places may claim the title of England’s second city but in the property stakes, Manchester is topping the league table and even overshadowing London on many fronts. There is strong house price growth, an appetite for city centre living and even a noted trend for international investors, who are swapping the Capital for the land of the Mancs.
Mad for Manchester’s rental market
You know a city has cemented its property investment status when more than one report flags it up as a good bet. LendInvest’s updated buy-to-let index singled out Manchester as the best place to explore buy-to-let in England and Wales, with rental yields at 5.55% and rental growth at 5.76%. The index was quickly followed by a TotallyMoney investigation in to the country’s best rental yields, which listed two Manchester postcodes in the top 10 places to invest in the UK. The research found M6 has an 8.25% yield, with M14 close behind with almost 8%. The city’s four universities and a student population of 100,000 were cited as reasons for good rental health.
House price growth in a purple patch
Manchester’s house price growth is something the rest of the country could envy, consistently outstripping the UK average forecast. The recent appreciation is stunning, with a report from Cushman & Wakefield revealing that, in the three years to July 2017, property prices in Manchester increased 34% while, nationally, the average stood at 30%. House price growth is particularly important to the investment market, with Hometrack’s recent analysis of house price trends across 20 of the UK’s largest cities putting Manchester on top for capital appreciation. In fact, the city has seen record house price inflation over the last 12 months of 7.7%, compared to house price growth of 0.8% in London.
Irrisistable city centre living
Back in 2000, there were 10,000 living in the heart of Manchester, but the latest figure now stands at 70,000 - many of them students and young professionals. This desire to live close to work and social hubs is fuelling Manchester’s property market – confirming JLL’s observation that city living in Manchester has gained strong momentum over the past three years. Continuing regeneration – notably thanks to the Government’s Northern Powerhouse investment programme – combined with the highest rate of job creation in the country (the number of new jobs in Manchester grew by 84% between 1999 and 2015) explains the reported 30 new residential developments currently being built in the city.
Manchester property snapshot:
- Property company JLL has predicted that Manchester property’s capital growth will reach 28.2% between June 2017 and June 2021
- According to Hometrack, the average house price in Manchester is now £153,600
- Manchester city’s sub-markets tipped for growing success include the Northern Quarter, Piccadilly, Castlefields, St John’s, Deansgate, Salford, Ancoats and New Islington