Property Investment In Manchester Remains Popular
Property Investment In Manchester Remains Popular, as Manchester continues to be at the centre of the Northern Powerhouse. Manchester has built a strong reputation as a property investment hot-spot. Where investors, can buy in a prime city centre location for a fraction of London; attracting higher yields and stronger growth than in the Capital. Since being named the UK’s Number 1 Buy-to-let Hotspot, by HSBC, and the British government’s master plan of the Northern Powerhouse, The Government has already backed the North with record investment in transport. By 2020 it will have spent more than £13 billion. Investors have regarded Manchester as one of the top international cities for property investment, and property investment in Manchester from International buyers remains popular. We have a look at the key factors which keeps Manchester high on the list of top locations for property investors. Manchester has the highest GVA and development of the Northern Powerhouse’s cities. Manchester’s core urban area is rapidly expanding; growing on average seven times faster than other central metropolitan areas of the UK’s biggest cities. As several FTSE 100 companies and SME’s set up in Manchester, employment in the city has risen. Which has to lead to Manchester now having an economy bigger than that of Wales or Northern Ireland. What’s more is, the city’s GVA is forecast to grow to GBP73 billion by 2024.
Manchester’s Thriving Economy and Job Creating
Undoubtedly, Manchester has been the main direct beneficiary of England’s ‘Northshoring’ activities; the growing trend of moving professional services to the north of England, it is cheaper to operate in the North than the capital. Manchester has the main amenities as London, high-tech telecoms and business districts, international connectivity and accessible through a modern internal travel network, but, at a lower cost than London. The BBC has developed a centre in Manchester, as has major multinational law firm Freshfields Bruckhaus Deringer who have moved some 300 business service roles north. These moves signify the improved appeal of to do business in the North. Furthermore, they demonstrate the growth of business in the financial and professional sectors in Manchester. Other sectors are growing in Manchester, too, particularly the cultural, creative and digital industries. Manchester has Europe’s second-largest cluster of creative/media businesses. Manchester can also boast growth in the science, research and development sector. Manchester’s GBP28.5 million Cancer Research Centre is one of the UK’s most innovative medical research facilities. Employment growth expectations are staggering. Oxford Universities economists expect that Job creation in Manchester will outpace many international capitals, such as Paris, Berlin and Tokyo. Predictions show Manchester will create 55,000 new jobs before 2025. This translates to an additional GBP19 billion to the Total Gross Value in the economy by 2030. Furthermore, the growth of jobs in the financial and services sectors will contribute to a 28% rise in disposable income.
The HS2 High-speed rail network will add to the appeal of investing in Manchester. The infrastructure will transform the view of Manchester from a city in the North, to an extension or Borough of London! Shortening the Journey time to London to just 1 hour 8 minutes from 2 hours 8 minutes. The HS2 high-speed railway will link London, Birmingham, the East Midlands, Leeds and Manchester. Furthermore, this will nearly half journey times. In addition to that Manchester will also benefit from improved inner-connectivity; work is underway on the new GBP350 million, six-stop Metrolink line. Therefore having economic significance to the 1,300 business based in Trafford Park and Trafford centre areas. The new Trafford Park tram line is due for completion in 2019, supporting regeneration in the city and helping to boost economic growth.
Manchester appeals to many overseas investors, who are looking to invest for accommodation for their children. Manchester has a number of world-class universities, such as the University of Manchester, the University of Salford and Manchester Metropolitan University. Furthermore, the student population is over 100,000 students. Furthermore, with over 50% of students staying in Manchester to live after University, it makes Manchester an ideal place to invest as there is a steady influx of people looking for rental property. Read More: Why Invest In Manchester? Read More: Why Invest In Liverpool?
Manchester Supply and Demand
The shortage of new homes built in Manchester over recent years. With a rising population and economic growth, has lead to a supply and demand imbalance. This has created an ideal location for investors. Long term rental tenants, high yields and strong capital appreciation. There has since been more development in Manchester., however, this is still short by over 1,000 homes per year in the city centre. In 2017 Manchester Delivered 1,784 homes, a shortfall of more than 716 homes to keep up with current demand. The City Council aims to build 2,500 units per annum over the next decade, enhanced and supported by GBP300 million from the Northern Powerhouse housing fund. Property Investment In Manchester Remains Popular, similarly, so does a strong local end-user demand for housing, which is rising steadily. The population in Manchester has grown 20% in the last ten years, reaching 2.69 million in 2017. Predictions indicate that the population will reach 2.87 million by 2025. Therefore increasing the demand for housing in Manchester.
Manchester Sales and Rental Markets
Manchester property is selling on average 3 times faster than in London. Furthermore, price growth is rising too; The average house prices in Manchester rose 6.6% from November 2016 to November 2017. Therefore, outperforming the UK average of 4.7% on average. The price growth in Manchester is expected to continue; Estimates show a forecast of 18.5% from 2018 to 2021. Furthermore, rental prices are also increasing. A 17% rental growth forecast from 2018 to 2021. The rise in the number of young working professionals and new graduates staying in the city add to the local demand for housing. This, therefore, creates more competition in the market for rentals. The young rental market is primarily in search for new-build, city-centre accommodation. Manchester has a thriving economy and a swelling population. This coupled with the huge and continued government investment into leisure, culture and infrastructure offer an explanation as to why Property Investment In Manchester Remains so Popular. Read More: See our Latest Opportunities to Invest in Manchester