The Impact of Manchester Regeneration on the UK

Manchester is a city that’s experienced a high level of regeneration over the years. Investment in Manchester has meant that the city now stands as a beacon in the North West, attracting major businesses and residents alike, and producing the second-largest regional economy in the UK. This wasn’t always the case, however. The city of Manchester suffered heavily from post-industrial decline in the neglected North. In the 10 years leading up to 1981, Manchester fell victim to an unprecedented loss of almost 50,000 full-time jobs, and ultimately, 17.5% of the city’s population.

During these challenging times, the divide between the North and the South became the most noticeable, with London performing at a far higher level than cities up North could even imagine. Fast forward to today, however, and the urban regeneration Manchester has experienced has had a significant impact on both the city and the UK. If you want to learn more about Manchester’s urban regeneration, and regeneration projects in Manchester, this is the guide for you. Here we will talk about past and present Manchester regeneration, and the impact it has had on the city and 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.

Many start-ups choose to launch in Manchester, with entrepreneurs and companies attracted to the city’s rich culture and ever-expanding nature. Cost is also a big factor. The city is 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.

There has been plenty of significant Manchester city-centre regeneration. From the massive Spinningfields project, which has been dubbed the ‘Canary Wharf of the North’ thanks to the addition of high-quality office spaces, to the transformation of Salford with MediaCityUK, the city council has spent billions transforming the city into a thriving economic power.

MediaCityUK, a massive multi-billion-pound project in Salford, has helped attract some of the country’s biggest media companies. Organisations like the BBC and Granada studios have all opened major operations in the area, with commercial rental costs in the capital becoming too sizeable. This development project has undoubtedly spurred on regeneration in the city and is a perfect example of regeneration in the neglected parts of Manchester.

Manchester city centre regeneration has done a great deal for the business scene in Manchester. The prior mentioned Canary Wharf of the North essentially added an entirely new area to the city centre. Costing around £1.5 billion, Spinningfields sits in the heart of Manchester and has created a world-class business sector to Manchester’s repertoire through the addition of high-grade office spaces. This sector is so big that Manchester is ranked in the top 10 global emerging ecosystems for start-ups.

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 27.3% by 2024. This is almost 7% higher than the national average of 20.4%.

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 12.7% increase by 2024.

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 reducing 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 just under 6%, 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.