Marijana No Comments

House prices in Manchester fastest growing in UK

New research from estate agency Cushman & Wakefield shows that house price growth in Manchester has risen higher than anywhere else in the UK, exceeding the UK average in five out of the past six years.

This culminated in a significant gap in 2017, when the average house value rose 11%, against a regional average of 6%, and a UK average of just 5%.

Manchester also leads the way in house price inflation when compared with all other core UK cities.

In the 12 months to July 2018, prices rose just under 9%, compared with Leeds at just 3.8%. In London house price inflation saw a drop of -1%.

Julian Cotton, associate director at Cushman & Wakefield, said: “Our research demonstrates that year-on-year growth within the Greater Manchester residential market has continued apace, outperforming the wider region and once again exceeding the national average, a trend that has been consistently evident in five of the last six years.

“Greater Manchester is the UK’s largest and fastest growing economy outside of London, having transformed itself into one of Europe’s most dynamic and exciting cities in which to live and work.”

The new homes market is also looking bright in Manchester, with forecasts showing that house prices in the city are expected to rise to 57% by the end of 2028.

Bristol is second at 53%, Birmingham and London expected to rise at a similar level of 46%, with Liverpool faring the least at 20%.

Once again, Manchester is showing the greatest increase of all core UK cities.

Despite this upward pressure on house prices, the Manchester new homes market still benefits from a very strong domestic demand due to only a 16% difference between the average price of a new home and existing homes in the city.

This is not the case in a number of other core UK cities, where, in some cases such as Newcastle, new homes can cost nearly 50% more than the average existing home.

Julian added: “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 – Co-operative Group, Amazon, Royal Bank of Scotland, BBC and ITV – have all chosen to establish key operations within the city.

“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.”

He said: “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.”

Manchester’s rental market is also rising higher than in any other UK city.

Rents were up by 10% to April 2018, compared with Leeds in second place at 8%. London again shows a negative where rents have fallen by -8%, beaten only by Newcastle where rents have fallen by -9.5%.

Julian said: “The rental market absorbs many of the 100,000 students studying at The University of Manchester, Manchester Metropolitan University, The University of Salford and The University of Bolton, as well as young professionals requiring the convenience of a central, vibrant location.

Cushman & Wakefield said Manchester has a huge, talented workforce and a super economy of £300bn, being home to a host of FTSE 100 companies.

With an average age of 29 it has a large student population, many of which stay on after graduation.

Manchester has the second best graduate retention in the UK after London.

According to the Higher Education Statistics Agency, 50% of Manchester’s graduates stay in the city for work, while 60% of Manchester-born students who study in other locations return after graduation.

Source: The Business Desk

Marijana No Comments

Manchester has the fastest rising prices

More research highlights the growth of Manchester’s property market, with no other city matching the levels of capital appreciation investors are achieving in the north-west.

Summary:

  • Manchester tops the latest index covering property price growth of the UK’s 20 largest cities
  • Capital appreciation for the 12 months to the end of June 2018 came to 7.4%, versus a national average of 4.6%
  • It follows research that suggested house prices in Manchester could be set to rise by as much as 25% over the next three years

Yet another piece of recently published market analysis states that Manchester is the strongest UK city for property investment.

The city once again tops Hometrack’s index of property prices in the country’s 20 largest cities. In the 12 months to the end of June 2018, average values in Manchester have increased 7.4%.

On a national level, average prices in the UK rose 4.6% during this time. However, growth in London was among the lowest, with prices rising marginally by just 0.7%.

Performance is being underpinned by a property market that simply cannot keep pace with demand from a fast-expanding population. Commenting on the Hometrack index Kevin Roberts, Director of the Legal and General Mortgage Club, said that a “boost to housing supply remains critical and it’s essential that the government continues to focus on meeting the (UK-wide) target of 300,000 new homes a year”.

Earlier in July 2018, Hometrack pinpointed Manchester as being home to the UK’s fastest rising property prices. Crucially, they also pointed to a similar pattern of growth between 2002 and 2005, at a time when London prices were slowing, where Manchester and Birmingham saw the largest increases in real estate values.

Hometrack believes that due to surging population numbers and the subsequent demand for property, a similar period of growth could once again take hold in Manchester; one in which investors could expect to see as much as 25% capital appreciation in the next three years alone.

Source: Select Property

 

Marijana No Comments

Manchester Property Hits The Jackpot For Capital Growth

The latest statistics released by Hometrack who analyse house price trends across 20 of the UK’s largest cities put Manchester on top for capital appreciation on property investments. Dubbed the largest power-base next to London, the northern location overtakes southern destinations with recorded price inflation over the last 12 months as high as 7.7 per cent. Compared to rival property hotspot, London, where house price growth was only 0.8 per cent in the same period, it’s clear that Manchester is leading the way for the most lucrative property investments in 2018.

The data from April this year shows how Manchester’s positive growth has been consistent over the last three months as well as the past month respectively, with incremental bursts beating fellow northern hotspots in Sheffield and Newcastle. Cambridge and Oxford are somewhat add-ons of the London market that used to contribute considerably to its price growth, but these areas are now seeing bigger slumps than ever and are struggling to rank highly for price inflation. Across the two locations, growth only reached a high of 2.1 per cent over the past 12 months as a reflection of the dwindling property market towards the south shores of the country.

 According to Hometrack, the average growth rate for cities is 4.9 per cent and 4.5 per cent across the UK. Manchester’s colossal surge in house prices outstrips both of these figures to highlight that it’s a major contender for property investment, not only surpassing London but most other parts of the UK too. But how do investors know that the trend is going to last? Property company JLL have in fact predicted that Manchester’s capital growth will reach 28.2 per cent between June 2017 and June 2021 in an immense market revolution.

Rising house prices tend to have negative connotations, but for buy-to-let investors, price inflation equals property gold. The average Manchester house price is £153,600, which is still relatively low when compared to the average of £490,100 in London. Investors can acquire lower-cost properties and receive better prospects for capital growth in the future to allow buy-to-let players to cash in on their Manchester investments.

Manchester’s record levels of house price growth haven’t been witnessed in the market since 2005, awarding it with the UK’s strongest regional property rating. In fact, experienced companies like RWinvestare urging investors to get involved as soon as possible in order to reap the benefits of capital appreciation. The underlying market conditions indicate healthy market strength in Manchester which also assures investors with affordable properties and strong rental yields. Now establishing itself as a go-to location for investment in buy-to-let property, Manchester has become a lucrative alternative to London and it’s notoriously trying market.

Source: Shout Out UK