When looking at future growth potential, it’s good to look at how property prices have performed in the past.
Why is this?
Put simply, if there has been consistent growth in an area over the last 20 years, this is a strong indicator that you can expect further development in the future.
Over the last five, 10, and 20 years, Manchester property has seen consistent and considerable growth.
Let’s explore this in more detail by analysing Manchester property market performance between 2001 and 2021.
What Happened to the Manchester Property Market in 2020?
To give some context behind the growth rates anticipated for Manchester, it’s essential to understand what happened to the UK property market in 2020 and 2021.
At the start of 2020, outlooks for the UK property market were largely positive, with Boris Johnson’s landslide electoral victory in December 2019 increasing market stability and confidence.
No one could have expected what was to follow, though, with the country hit with an unprecedented lockdown following the beginning of the Covid-19 pandemic.
Property market activity took a slump from March 2020, and many were fearful that the housing market was heading for a crash.
But what actually happened?
As we know, despite these negative claims and gloomy predictions, 2020 marked the start of a huge property market boom across the country.
By July 2020, Savills found that property interest had increased by 60% compared to the 12 weeks before lockdown.
These growth levels were mirrored in the Manchester market, which saw significant house price growth over the 12 months in 2020.
The trend shown in Manchester is almost identical across every property type.
While there was an initial dip in the first six months, house prices started to see a strong increase over the latter part of the year.
The average Manchester property initially started at £182,906 before rising to £200,242 in December 2020, a percentage increase of 9.48%.