Manchester is dominating current property industry news with its impressive growth levels and potential for high yields surpassing that of many other UK cities. Boasting an annual growth rate of 7.3%, it’s the fastest growing property market in Britain.

Manchester – north west England’s most talked-about-town, finds itself located within the renowned Northern Powerhouse. The strategy aims to build upon the economies of the north in a bid to even out the evident north-south divide. Northern Powerhouse cities accrue a total worth of £350 billion, and it’s Manchester that heads up the powerhouse.

Property Price Growth Manchester

Considered the second city of the UK after London, there is a heavy emphasis on transport, skills, education, business and culture to name just a few of the sectors under scrutiny. Investment into powerhouse regions like Manchester has provided it with the resources that it needs to reach a global presence in property

The buy to let sector is a part of the property market that is helping it to grow at such rapid rates. Rental demand is sky-high with renting the only feasible housing option for a lot of young people and students moving to the area. Some properties receive up to 4 offers and others are recorded as selling within one hour of being advertised online. Furthermore, some city centre hotspot properties are experiencing inflation of £75 a month because of the market’s success, but what is fuelling this increase in rental demand across the city?

The appeal of Manchester as a place to live and work is growing in unison with its booming property growth. Regeneration over the years has witnessed the introduction of the distinct commercial district, Spinningfields. Costing around £1.5 billion to develop, 430,000 square feet now houses some of the most prominent financial companies in the north west. Its status as a high-end and sophisticated location is illuminated by the designer outlets and fine-dining restaurants that line its streets.

Salford Quays Property Price Growth

Those opting for accommodation close to the city centre are flocking to neighbourhoods like Ancoats and New Islington which have recently expanded Manchester’s portfolio for buy to let opportunities. Previously run down industrial quarters have blossomed into the UK’s trendiest places to live and have become go-to destinations when looking for an investment property in Manchester. With canals, independent stores and intimate restaurants, these city escapes create a unique sense of community for its residents.

This combination of employment opportunities in bustling business sectors with new residential neighbourhoods on the scene is pulling domestic residents and international individuals into the city’s boundaries. At the forefront of UK and overseas real estate news, Manchester’s world-renowned universities also help to attract large undergraduate numbers who require purpose-built student accommodation adjacent to campuses of study.

Beetham Tower Manchester

It’s clear that demand for Manchester property is increasing, but it’s towering above the supply available. With young professionals and students making up a large chunk of the demographic powering tenant demand, developments are under pressure to deliver modern and high-quality living near to key sites. Manchester’s population is only going to get bigger, with predictions hinting at figures of nearly 3 million people by 2013. Residential property demands will thus be under more pressure, and with only 70,000 students out of Manchester’s 100,000 having access to specialised student living, the student sector will be in the spotlight too.

Investors are taking advantage of the current undersupply in the market which are driving yields up and causing the Manchester property market to grow considerably. Property prices rise in line with the increasing value of the area, and so investments in this city’s property have a high potential for capital appreciation. If the cost of property continues to go up the way it has been in Manchester, values will increase and buy to let sellers will make a profit on their initial expenditure.

To add some perspective, the UK as a whole recently experienced rises in house prices of 4.9%, whereas they inflated in Manchester at a rate 2.4% times faster than this. Leading the way in north west property, house prices in the city centre zone went up by 38.3% from 2013 to 2018, which is 10% more than the Greater Manchester area as a whole.

By Laura Howard | 3rd May 2018

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