Manchester is poised to become the UK’s no.1 city for economic growth according to a brand-new house price forecast.
The UK Residential Forecasts 2022-2026 report from JLL has put Manchester on top as the North West city recovers well after the Covid-19 pandemic.
Analysing the impact of changing living priorities and Covid-19 on the UK residential market, JLL has predicted that UK house prices are set to rise by 4.2% pa over the next five years.
However, in Manchester, these predictions are even higher, with a 4.7% increase in local property prices by 2026.
JLL says this has been caused by a huge economic uplift in the Manchester city centre hospitality sector, with people returning to work post-lockdown.
Associate at JLL’s New Homes team in Manchester, Elliott Walker, said: “Whilst 2020 business performance was far more positive than first feared, we always expected this year to be an improvement on the last.
“With Covid-19 restrictions easing, Manchester is finally starting to feel like its vibrant self again, as people return to work and hospitality comes back to life, demand for city-centre new homes has soared.”
Alongside this surge in house prices, rental values are also rising, with an annual growth of 2.9% predicted until 2026.
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Supply and Demand Imbalance Leading to Huge Growth in the UK Housing Market
The main cause of this sky-high growth has been a huge demand versus supply imbalance seen in the UK over the last year.
The UK House Price report from Rightmove found that in September 2021 buyer demand per property for sale was twice as high as pre-pandemic levels.
These findings were supported by JLL’s report, which noted that new home transactions in Manchester were 21% higher in Q3 2021.
UK housing supply simply cannot keep up with this demand, with the widest housing market supply and demand gap in 10 years.
This is particularly true in Manchester, as a report from Urbanbubble shows that the available supply of rental property in Manchester reached its lowest-ever level in late 2021.
Head of UK Residential and Living Research at JLL, Nick Whitten, said: “Manchester is booming and our predictions see the city becoming the strongest hub for economic growth within the UK.
“As sales growth and demand continues to soar, the residential market in Manchester is now crying out for both new investors and existing developers to restart their activity in the city and get building more new homes to help strengthen the market even further.”
The future of Manchester investments looks incredibly bright, with all-new developments like the incredible Embankment Exchange providing a fantastic opportunity to finally invest in the Manchester property market.
Plus with millions of pounds worth of regeneration centred on locations like MediaCityUK, Greengate, Wigan, and Manchester city centre, there’s likely never been a better time to invest in Greater Manchester.
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Disclaimer: This content was originally written in December 2022. By the time you read it, some of the statistics used may have changed.
For the latest on the UK Property Market, take a look at our updated 2023 guides.
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