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Manchester boasts largest UK house price increases in the last 20 years

October 27, 2023

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Article Summary

Manchester
  • Several regeneration projects, such as the £4 bn Victoria North Regeneration scheme, are contributing to the city's ever-growing modern urban landscape.

  • In May 2000, an average house in Manchester was priced at a modest £41,625, but the latest data reveals a remarkable surge to £241,956.

  • The trend is likely to continue given the region's attractiveness as a place to live and invest.

Introduction

The meteoric rise in house prices in Manchester over the past two decades is a testament to the city’s transformation into a dynamic and highly desirable urban centre. This remarkable growth reflects a confluence of factors that have made Manchester not only a great place to live but also an attractive destination for property investors.

 

Factors influencing growth

  1. Educational Hub: Manchester’s status as a renowned educational hub has drawn students from across the world. The presence of several universities, including the University of Manchester and Manchester Metropolitan University, has not only fuelled demand for student accommodations but also contributed to a knowledge-based economy that attracts professionals and businesses.
  2. Infrastructure Development: Manchester has seen considerable investment in infrastructure, including improved transport links, the expansion of Manchester Airport, and major regeneration projects. The city’s modernisation has made it an even more attractive place to live and work.
  3. Increased Investment: The surge in property prices in Manchester has caught the attention of property developers and investors. Several regeneration projects, such as the £4 bn Victoria North Regeneration scheme, are contributing to the city’s modern urban landscape. Investors are eyeing Manchester’s potential for long-term capital growth and solid rental yields.
  4. Regional Growth: Manchester’s property market boom is part of a broader trend in the North of England. Cities like Leeds, Liverpool, and Sheffield are also witnessing increased interest from property investors as people seek alternatives to the traditionally high-priced markets in London and the South East.

Manchester house prices data

New data reveals that since the year 2000, Manchester has experienced the most significant surge in house prices in England and Wales, surpassing all other regions in the country.

As Channel 4’s long-running show, Location, Location, Location, returns for its 40th series on October 25, the Manchester Evening News examined how property prices have evolved over the past 23 years since the program first aired.

Data demonstrates that Manchester has achieved the most substantial nationwide increase in house prices, with homes now valued at nearly six times their 2000 figures.

In May 2000, the average house price stood at just £78,810 for England and Wales, as per Land Registry data. In contrast, the latest figures show a significant leap to £299,715, marking a staggering 286% increase.

However, the ascent in average prices has not been uniform across the country, as Manchester stands out with the highest percentage increase of any local authority.

In May 2000, an average house in Manchester was priced at a modest £41,625, but the latest data reveals a remarkable surge to £241,956.

This eye-popping price escalation represents a remarkable 481% increase, nearly six times higher than when Location, Location, Location originally aired, and surpassing even the cost escalation of properties in London.

Notably, several other boroughs within Greater Manchester are also featured among the 20 local authorities witnessing the most substantial percentage increases in house prices since 2000.

For instance, Oldham ranks at number 10, with the average property price in the borough climbing from £42,047 to £195,582, marking a 365% increase. Bury secures the 12th spot, with an average property price surge from £52,377 to £242,116, a 362% increase.

Trafford comes in at number 15, with the average house prices soaring from £81,539 to £371,881, marking a 356 percent increase. Salford follows at number 16, where property prices have risen from £46,824 to £211,868, representing a 352% increase.

These substantial increases in house prices reflect a remarkable transformation in the property landscape of Greater Manchester since the start of the millennium, and the trend is likely to continue given the region’s attractiveness as a place to live and invest.

Conclusion

The data clearly shows that Manchester is not just experiencing a housing boom; it’s also evolving into a city of significant economic, cultural, and educational importance. With the continued expansion of the city centre and the growth of surrounding boroughs, Manchester’s property market looks set to remain an attractive proposition for property investors. While property prices have risen substantially, they still offer relative affordability compared to many parts of the South of England, making Manchester a compelling option for those seeking a balance between urban living and financial prudence.

To find out about more of some of the most attractive new-build and regeneration projects that Manchester has to offer, click here.

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