According to the Manchester Evening standard, the city from which it reports is now cemented as a top six Northern Powerhouse city. Due to investments boosting Manchester’s property market. A GVA of 6.8% per head has been achieved since the initiative’s inception. It has had help in the form of £78million of funding secured for culture and leisure facilities in the city. As such, Manchester is attracting ever more residents who want to live in one of the most vibrant and dynamic places in the UK.
So what is it about Manchester in particular that is causing so much investment and growth? What does this mean for Manchester’s sales and rental markets?
A diverse economy
For many Manchester represents the centre of the Northern Powerhouse. The city is proud of hosting Europe’s second largest cluster of creative and media businesses. This is including MediaCityUK. It is a further home to thousands of students, over half of whom stay in the city after graduation. It also hosts a £28.5million Cancer Research Centre, working in partnership with the University. Set within a contemporary landscape the state-of-the-art facility is provided with an attractive setting for the new building. It will provide space for around 250 staff and more than 6,000 m2 for expansion of research activity.
Travel connections are also improving in the city. Manchester is well on its way to becoming a northern travel hub. There are currently plans in place to expand Manchester Airport by 2020. Improving intra-city travel with the Metrolink service upgrade. This should reduce travel times to London with the introduction of High Speed Rail 2 (HS2) in 2033.
Job & population growth
Thanks to these initiatives, Oxford University economists predict that job growth in Manchester will soon exceed many international capital cities including Paris, Berlin and Tokyo.The population of Manchester City Centre grew by 10% in the three years between 2014 and 2017. By a further 37% between 2018 and 2024 this is expected to grow. So by 2025 Manchester can expect to have a total population of 2.9 million people. Of this growing population the biggest growing demographic is professionals, aged 35-49. Much of this demographic is relocating to the city to take advantage of increased job opportunities.
This large influx of new people into Manchester requires housing, and the city council now have a target of building 2,500 new homes annually until 2025. The market however is struggling to match this demand. With 1784 residential units completed during 2017. That’s a short fall of 716 homes. Despite a third consecutive year of sustained growth. Despite this, there is still increased confidence in the growing city indicated by two bumper years of construction.
The sales market
Manchester is a star of the UK property market, with an average house price growth of 6.6% between November 2016 to November 2017. With these figures Manchester outperformed the rest of the UK, which grew on average by 4.7%. The housing market doesn’t seem to be slowing down either, as JLL have forecasted 22.8% growth between 2018 and 2022.
The Manchester property market is even more fast-moving than London, with properties selling 3 times faster than the UK capital. The average Manchester property remains on the market for just 36 days, with 11,712 homes sold in 2017.
The rental market
Currently, privately rented are almost two thirds of households in Manchester’s city-centre. Investments boosting Manchester’s property market will lead to an increase in the rental market. This is expected to increase between 2018 and 2022 due to a forecasted rental growth of 17.6%. Much of this growth is attributed to requirements from students, recent graduates and young professionals. Such individuals would prefer to rent in prime city-centre locations, and aren’t ready to buy. The ratio of rental and sale properties on offer is now 50:50, the rental market share growing by 10% in 2017.
There’s no doubt that the Manchester property market will continue to improve for the foreseeable future. Healthy economic growth, population increases and residential development targets have made the city very successful.
There has never been a better time to invest in Manchester. if you need any support finding an opportunity in the city, give us a shout or click here to find 5 reasons to invest in Manchester’s rental market.