Manchester property market growth highest in the UK in five of the last six years
House prices in Manchester have consistently out-grown the rest of the UK over the last six years, topping the growth chart in five of those years according to data from Cushman & Wakefield.
The most significant growth gap occurred last year where local house price growth topped 11%, more than double the UK average over the period. Meanwhile, data from Hometrack suggests a further 7% annual growth over the last 12 months – twice the growth rate of other UK cities.
Over the next decade, average asking prices are expected to increase 57% in the city, with Bristol and Birmingham also expected to see marked growth.
Asking rents in the city are also rising fastest than any other UK city, up 10% between April 2017 and this year.
Yet despite high price inflation, properties in Greater Manchester still remain comparatively affordable for tenants when compared to other regions with average asking prices sitting around the £200,000 mark according to Zoopla, compared to £205,000 in Nottingham and £246,000 in North Yorkshire.
The new homes market, in particular, is performing well with strong demand and a 16% price gap between the average price of new and old properties in the area. In Newcastle, for example, new homes are 50% more expensive than older units.
‘Manchester is now one of the best cities in Europe to do business in’
The significant growth in the local housing market has benefited immensely by the thriving business environment. Alongside the arrival of the BBC amongst others to Media City, Manchester has become a renowned start-up and FinTech hub with banks including Co-Op and fashion empires such as Boohoo basing their operations in the city.
A growing reputation attracts more students who then continue to live in the city following graduation and taking up promising job offers in the local area, topped up by a growing numner of young professionals desiring to live close to central jobs and a vibrant culture.
Meanwhile, the general thinking in regards to living in a city centre has changed drastically over the last two decades. City living is very much in vogue right now, and with increased demand comes increased property development – evident in the numner of ever-present cranes that hover above the city’s skyline.
Indeed, Greater Manchester is the UK’s fastest-growing local economy outside of the capital with an estimated worth of £300 billion.
“Seen as the regional centre for finance, commercial and retail with world-class transport links, Manchester is now one of the best cities in Europe to do business in. Major corporations such as the Co-operative Group, Amazon, the Royal Bank of Scotland, the BBC and ITV have all chosen to establish key operations within the city,” said Julian Cotton, associate director at Cushman & Wakefield.
“The relocation and start-ups of these major corporations and small independent businesses has resulted in the creation of new jobs. It is expected that around 3,100 new jobs will be created per year across Manchester to 2034. Many of these jobs will be high salaries based in the city centre. As a result, Manchester’s population is anticipated to grow by 3,500 people per year over the same period creating an ever-growing demand for housing.
“A fundamental driver in the popularity of the North West as a region in which to invest has been price. Price points perceived as affordable, particularly from an emergent overseas market and a somewhat overpriced, oversaturated London investor market, have proved popular with buy-to-let investors acquiring new-build and second-hand stock,” he concluded.