The Manchester property investment market has proven its resilience during the coronavirus pandemic. At a time when other housing markets were stagnating or even declining – such as in London – Manchester’s property market was seeing some of the best results in the country.
The rapidly increasing rents and housing prices are just two of the reasons why a Manchester property investment was recently named the best option for UK buy-to-let landlords. But what is driving Manchester’s booming housing market when other cities haven’t fared so well? Here are three factors why.
1. People aren’t leaving Manchester
Unlike other cities – in particular those in the South East – Manchester hasn’t experienced an exodus of people moving away from it.
While the pandemic spurred residents of other densely populated cities like London to move to the suburbs or further away to the country, the people of Manchester overwhelmingly decided to stay put. Instead of leaving the city centre, Manchester’s residents have been moving to other city centre properties with more living space and outdoor access.
To take advantage of this change of living requirements by the city centre’s residents, people making a Manchester property investment should prioritise places with good outdoor access and generous living areas.
2. But people are moving to Manchester!
Even before the pandemic, large numbers of people were leaving the South East for key Northern Powerhouse cities like Manchester.
The city’s affordable living costs and thriving culture draw many young professionals away from the capital. It is also one of the top UK cities for students with one of the best graduate retention rates in the country. This is reflected in Manchester’s young average age, which was 33 in 2016.
And because younger people are more likely to rent than own a home, this makes a Manchester property investment a popular choice for buy-to-let landlords.
And it isn’t just people either. In a move known as ‘northshoring’, increasing numbers of large organisations are relocating to Manchester. These moves then create new job opportunities in the city, bringing yet more people here.
3. Demand is far outstripping supply
In the ten years between 2006 and 2016, Manchester’s population grew by 16.7% – double the average UK growth rate for the same period. And it has continued to rise ever since.
A growing population means increased demand for living space, creating great conditions for a healthy property market. This is further bolstered by the fact that while there are huge levels of investment in residential development in Manchester, the housing supply just can’t keep up.
According to Deloitte’s 2021 Manchester Crane Survey, during the pandemic 5,000 new Manchester homes were brought to market. This is higher than any other year since records began in 2002, but prices, rents, and sales have remained high nonetheless.
Find out more
To find out more and register your interest in making a Manchester property investment, contact the northern property experts at North Property Group now.