The fundamentals behind demand for property in the city remain strong and are supported by ongoing growth factors. As more and more new graduates, young families and young professionals move away from the high price tag of London, the UK’s second city of Manchester is increasingly attractive with its prime job opportunities, career growth prospects and diverse cultural scene.
North vs. South
The nation’s capital is no longer the centre of it all. Demand for property has fallen significantly in London where property price growth is also struggling, and rental prices have dropped. A recent report from Zoopla shows that average rents nationally for the 12 months to June 2020 stood at 1.1% but doubled to 2.2% when London data was excluded.
In contrast, as one of the UK’s main digital hubs and the second largest creative hub in Europe,Manchester offers exciting and creative career opportunities without the high living and rental costs of the capital. New office developments are underway across the city with a positive knock-on effect for residential property and investment prospects.
The demand/supply imbalance in the North West continues to powerfully drive rental growth with Manchester showing positive growth of 1.4% over the past 12 months and the current ratio between available rental supply versus demand measuring at approximately 1:5.
Reports show that as the UK returns to a stronger economic and political position and the markets recover following the post-Brexit period and COVID-19 shakeup, this will encourage higher price growth in the regional housing arena over the next few years. While Manchester’s property market has consistently outperformed most other UK cities over recent times, the coronavirus pandemic has proven to be another setback for London property which has in turn cemented and enhanced Manchester’s leading market position.
Leading the Market
Population increase is one key reason why Manchester is such a hotspot for buy to let investors, as demand for quality accommodation in the city continues to grow and grow. Summer 2019 saw a 117% year-on-year increase in people moving to the city while recent reports suggest that the city’s population will pass 635,000 by 2025 with an increased density of city centre dwellers.
In line with these trends, Manchester and the North West boast the enviable position of being poised to see the highest rental growth (16.5%) of any UK city over the next five years. Thanks to continued local economic growth and increased population as more and more people migrate from London and the south, these trends just grow more positive.
Real wage growth and a thriving jobs market are drawing more and more people to regional cities and the levels of talent attraction and retention in Manchester is growing stronger all the time with the property market responding to the subsequent increased demand for quality living.
Property Investment Prospects
With a wealth of luxury accommodation on our books, the Alesco property team would like to present you with two of our most sought-after developments in and around Manchester. As serviced accommodations with opportunities for rental on a short let basis, they represent one of the fastest growing asset classes in the UK and Europe for an exciting, lucrative investment opportunity with earnings on average between 30-35% based on 75% occupancy levels.
First up, we have the luxury residential development of Carnaby Place, situated just a few short minutes from Manchester city centre and close to the thriving hub of Media City. Comprised of 96 one-to-three bedroom apartments and an exclusive range of three-bedroom townhouses, the development boasts a highly-sought-after combination of high-spec living with a central location.
Designed as a sociable development specifically geared towards the city’s young professional community, it includes communal gardens, a residents’ lounge, 24/7 concierge service and secured residents parking, as well as keyless and CCTV-monitored entry to all buildings for secure and upscale urban living. Apartments are currently being sold at 20% below market value – coupled with stamp duty cuts and with 10% net yields projected, investors could reasonably expect to double their returns in comparison to a traditional long-term let.
Another luxury development that we are proud to introduce is Regent Plaza. A landmark residential development situated on the edge of Salford and just a stone’s throw from Manchester city centre, it boasts a prime location in the emerging creative quarter with competitive prices starting from just £129,950. The contemporary space includes 525 units comprised of 1-3 bed apartments and three-bed townhouses with floor-to-ceiling windows for spaces flooded with natural light.
Situated around a sprawling centralised landscaped garden, the development includes an onsite gym, residents’ lounge and 24-hour concierge. With 7% gross yields assured for two years, this is another prime opportunity for investors including those seeking to take advantage of the benefits of short-term tenancies.
All homes are sold via our handpicked, highly skilled agents and fully managed by a professional service for a fuss-free, hands-off investment, Manchester boasts the second largest economy in the UK and has continually been ranked the best UK city for quality of living. As the city continues to welcome an unrivalled level of inward investment and multi-million pound regeneration projects, Manchester’s star continues to rise.
And with property prices projected to rise 22.8% by 2022 – compared with 12.6% across the UK – but house prices staying well below the national average, there has never been a more lucrative time to invest. For more information on the property investment opportunities available, contact our team today.