Home » The impact of Manchester regeneration on the UK as a whole
The impact of Manchester regeneration on the UK as a whole
Considered the North’s answer to London, Manchester is a city that’s experienced a high level of regeneration over the years. This Northern spot was not always the thriving city it is today, suffering from post-industrial decline back in the 1870s. In the ten years to 1981, Manchester fell victim to a loss of almost 50,000 full-time jobs, and ultimately, 17.5 per cent of the city’s population.
It was during these hard times that the divide between the North and the South became the most noticeable, with London performing at a higher level than cities up North. Fast forward to today, however, and the urban regeneration Manchester has experienced has had a big impact on both Manchester and the UK. So what have been some of the biggest Manchester regeneration projects the council has introduced to transform the area, and what has this meant for both Manchester property investmentand the country as a whole?
Some of the biggest Manchester redevelopment projects
Manchester regeneration projects, both old and new, have had a lot to do with the current status of this thriving city. Here are some of the most notable regeneration projects in Manchester and Salford over the years that play a big part in the city’s economic growth.
Back in 1996, Manchester was affected by an IRA bombing which destroyed parts of the city centre and caused £250 million worth of physical damage, affecting many local people’s jobs. This is when news of the Manchester Millennium Ltd project was introduced, a regeneration strategy with master plans to build new office spaces, social housing, and improved transport to boost city centre attraction and encourage funding to rebuild Manchesters economic status. This project played a big part in the future of Manchester regeneration, and with the help of property developers and funding, formed the thriving north-west city we have today
Launching in 2011, NOMA is a development project that has played a big part in Manchester city centre regeneration. This £800 million central Manchester project is the largest in the north-west and focuses on developing the north portion of the city centre. Redevelopment has already begun, with some parts of the project having already completed such as the first phase of the scheme, One Angel Square.
MediaCityUK, based in Salford, is one of the most major Manchester redevelopment projects the city has seen. Built on the site of the once run-down docklands, the MediaCityUK development is a hotspot for business, housing, and investment. Launching in 2007, the MediaCityUK regeneration strategy has played a big part in making Manchester the city it is today. A multitude of businesses reside in MediaCityUK and provide plenty of jobs for local residents. This includes some big names like ITV, Kelloggs, Ericsson, and BBC. MediaCityUK is also a prime spot for social infrastructure, with the University of Salford being located in the area and readily available for business school students to utilise.
The business scene is thriving
Thanks to the regeneration that Manchester has undergone in recent years, the business scene in the city is one of the best in the whole of the UK. Regeneration projects in Manchester like MediaCityUK have put this city on the map for all things business, even stealing some spotlight away from the capital. Manchester business schools within both the University of Manchester and Salford, such as Alliance Manchester business school, have helped grow talent in the city, boosting graduate retention rates with an influx of young professionals and budding entrepreneurs.
Many start-ups choose to launch in Manchester, with entrepreneurs and companies being attracted to the rich culture and ever-expanding nature of the city. Cost is also a big factor, with the city being a lot more affordable than London, especially when planning to start a new business. Manchester city council encourages business growth within the city, with schemes available to help launch and improve Manchester start-ups.
The population is increasing
Manchester had a recorded population of 534,475 in 2018, while the whole Greater Manchester country has a population of 2.5 million people. The population of the city has been steadily increasing, with a growth of 95,144 since 2015. New predictions suggest that the city’s population will grow even greater by 2034, with an increase of over ten per cent.
Part of the reason for this increase comes from the shift in people choosing to move to Manchester from London. News outlets have reported that record numbers of Londoners have been moving to the north-west city as of late, exceeding the number of people moving to London from Manchester. This shows the overall effect that regeneration has had, with Manchester and the rest of the north becoming more of an appealing city to live and work in than the capital.
Manchester has become a UK property hotspot
As a result of the population increasing, housing and transport improving, and the business scene growing, the city has also gained greater momentum as a property investment hotspot and place to invest in buy to let. Manchester has affordability in its favour when it comes to local housing, with much lower prices than London. Large numbers of private property developers are creating investment opportunities in the city and catering to the high levels of demand.
According to research by Go Compare, the average property price in Manchester is £173,381, while London has an average of £484,173. These low prices make property investment in Manchester a very attractive venture, especially since high demand has led rental costs in the city to rise by 5.76 per cent. Low costs and high rents have led to some of the UK’s highest yields, with an average of 5.55 per cent. While rental costs are rising, however, they’re still highly affordable compared to other UK cities, with everything from the cost of rent and council tax being cheaper.
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 rise faster than any other UK location, with predictions for Manchester house prices to grow 57 per cent greater by 2028.
London is dwindling in comparison
While Manchester redevelopment is helping the city to thrive in regards to its property investment market, London’s investment market is underperforming in comparison. London property prices have recently been decreasing at a greater rate than other UK cities and the fastest rate in a decade, dropping by 3.8 per cent during the first three months of 2019. Pair this with low rental yields of 3.05 per cent and a 1.12 per cent decrease in rental price growth, and it’s clear that Manchester comes out on top compared to the capital.
The future looks bright
All in all, the result of regeneration has meant that this divide between the North and the South has shifted in a new direction. No longer is Manchester deemed an inferior city compared to London. In fact, report after report says that this city is actually gaining more appeal than the capital, and that’s partly thanks to Manchester redevelopment.
Urban regeneration in Manchester isn’t set to end any time soon, with a number of huge Manchester redevelopment projects in the pipeline. One example of some further regeneration Manchester can expect is with St Johns. This is a city centre project Manchester has been planning for a while and will see the creation of numerous new jobs, with plans to build social housing, investment properties, and greater attractions for local residents.
Whether you’re looking for Salford, Deansgate or Hulme Manchester regeneration or North, West, South or East Manchester regeneration, so many parts of the city are undergoing extensive redevelopment. Pair this with the strong house price growth predictions and ever-growing business prospects, and it’s clear that this city will continue to have a big impact on the UK for many more years to come.