The Impact of Manchester Regeneration on the UK

Manchester Has Become a UK Property Hotspot

The city of Manchester has been transformed throughout the decades into a major economic force. It is home to some of the finest universities in the world, like the University of Manchester, which has one of the best graduate retention rates in the country at 51%. The city also has one of the largest student populations in all of Europe, highlighting that it is an attractive city to overseas students.

Manchester has experienced huge growth thanks to mammoth Manchester regeneration. There have been colossal Manchester regeneration projects that have completely transformed the city. The projects have been so impactful that they have also changed Manchester property investment and property investment in the UK as a whole. Out of all the cities in the UK, few have been so transformed like this. It is now an attractive city to overseas investors and is a unique and vibrant hub filled with retail and leisure spaces. The people of Manchester now have tonnes of arts venues, food spots, and other leisure activities thanks to the significant regeneration here.

As a result of the population increasing and the business scene growing, the city has become a property investment hotspot and an ideal place to invest in buy-to-let. Manchester has affordability in its favour when it comes to local housing and residential developments, with much lower prices than London. Large numbers of private property developers are creating investment opportunities in the city and catering to high demand levels. Currently, the ratio between property availability and demand sits at 1:5, showing just how massive the need is for UK property and residential developments in the area.

According to Zoopla, the average property price in Manchester is £246,729 as of January 2024. London, on the other hand, has an average of £735,375. These low prices make property investment in Manchester a very attractive venture, especially since high demand has led rental costs in the region to rise by over 5% in late 2020 compared to 2019.

Low costs and high rents have led Manchester to have some of the UK’s highest rental yields, with an average of 7.78%. However, while rental prices are rising, they’re still highly affordable compared to other UK cities, with everything from the cost of rent and council tax being cheaper.

Urban regeneration in Manchester city centre and regeneration in the neglected parts of the city has completely transformed residents’ lives. There are several examples of a Manchester regeneration case study. One such example is Hulme, an inner urban area located in the South of the city centre. The location was hit hard by the post-industrial fallout, and regeneration work started in the 1960s by introducing new council homes to give a new lease of life. However, the project was deemed a complete disaster, and by 1991, the area was set to be demolished.

Thankfully, though, a second wave of regeneration struck the area in 1992. Since then, Hulme Manchester regeneration has introduced a £140m campus for Manchester Metropolitan University, new community centres, a bridge, and a redeveloped high street, amongst others.

Many areas in Manchester have been transformed since experiencing severe deprivation. Another example of a Manchester regeneration case study is East Manchester. The place was a home for many traditional manufacturing industries like coal and steel. But after these industries faltered and severe recessions occurred in the 1970s and 1980s, East Manchester was completely decimated economically. It was an incredible task to see this area regenerated. The local council helped establish the New East Manchester Urban Regeneration Company in the early 2000s to lead this regeneration process.

After Manchester’s Commonwealth Games in 2002, which acted as a catalyst that spurred regeneration and saw a £100 million investment in sports facilities in the area,  East Manchester regeneration began to take shape. The local council outlined a master plan for how the site will be transformed, with several examples of an East Manchester regeneration scheme to help the area thrive.

Since then, the East Manchester regeneration scheme has been an enormous success, and the area has been transformed. From the construction of thousands of new homes, affordable housing, a business park, new public transport links, and more, East Manchester’s regeneration has been incredible. Work continues today, with new East Manchester regeneration, including the introduction of new affordable housing and social housing.

From Hulme Manchester regeneration to East Manchester regeneration and the work of the New East Manchester Urban Regeneration Company, the city’s regeneration projects have been incredibly successful and have helped to transform the city from the ground up. Manchester City Council has clearly done admirable work in helping create the economic powerhouse we know today.

House price growth is another reason why so many people consider investing in this city’s buy-to-let market. Property prices in Manchester and the North West are rising faster than any other UK location, with predictions for the region to see house prices grow by over 20.2% by 2028.

While Manchester redevelopment is helping the city thrive regarding its property investment market, London’s investment market is underperforming. London property prices are increasing beyond affordability and have a slower growth rate than the North West, with a predicted increase of 13.9% by 2028.

Equally, high rental costs are decreasing in the capital. While still 90% higher than the UK average, rent prices had fallen by 3.7% in late 2020 compared to 2019, according to Homelet. These high house prices and reduced rental costs are a recipe for disaster regarding rental yield, with the capital sporting low rental yields of around 3%, with some areas as low as 2%. On the other hand, Manchester has a current average of over 7%, according to Zoopla’s latest figures. It’s clear that Manchester property is a far more enticing prospect than London property, and the idea of a neglected North is no longer the case. Manchester is now one of the hottest prospects for overseas investors and is one of the best cities in the UK to live in.