Category Archives for "Manchester Property Investment"

Manchester Property

Manchester – an economy that is pumping property investment potential

Economic and residential growth is here to stay

Earlier this year, we published an article asking if Manchester property investment could be the story of 2018. In that article, we highlighted the following:

  • Expansion of development across the city
  • Delivery of property for all tenant types
  • The masterplan that promises premier league property development
  • Collaboration between the local authority and private investment to regenerate swathes of brownfield land

In this article, we update you on the rapid transformation of Manchester and how its city landscape is changing.

Manchester is growing up – literally!

Manchester is getting taller. The desire for city centre living is encouraging developers to build residential towers and deliver thousands of new homes. Deansgate Square Towers – not long ago little more than a hole in the ground – is growing at a fast pace. These will dominate the skyline to the west, eclipsing the Beetham Tower, which was once the tallest in Manchester.

The residential market in Manchester is flourishing, as the city’s economy is proving itself as a world-class city for foreign direct investment and property investors. Its economy has grown faster than London’s since 2014 and is expected to continue to grow rapidly.

As the economy grows and adds jobs, so, too, does the population. Many of Manchester’s 100,000 students studying in its universities stay on for the opportunities provided in its thriving knowledge economy. More people are choosing rented accommodation to suit their lifestyle – and this creates a wonderful opportunity for buy-to-let property investors.

The big boys are investing in Manchester property

Manchester is attracting the new breed of buy-to-let investors. Institutional investors are taking advantage of the potential here, and ploughing money into buy-to-rent opportunities. LaSalle Investment Management, M&G, and Invesco (among others) have recently been joined by Legal & General Investment Management on the roll call of institutional landlords in Manchester.

L&G has followed up its Slate Yard, Salford investment with a deal for Deansgate Square’s West Tower. The deal is good for both L&G’s investors (who want long-term income and capital appreciation) and Manchester City Council (who want to grow the residential offering across tenure types).

Manchester set for continued residential growth

Manchester City’s growth strategy envisages a rapid expansion of residential stock, and as development ripples out from the city centre new locations for development will be unlocked. Plans are for around 15,000 new homes to be delivered in the next 15 years – with property types ranging from apartments to penthouses and townhouses.

The land is expected to be freed up in all directions, with £4 billion of investment pouring into accommodate regeneration and new developments in the Northern Gateway, Eastern Gateway and beyond in towns across the breadth of Greater Manchester.

Manchester’s well-connected towns are thriving, too

Investment potential is not limited to the city centre and its fringes in Manchester. The Metrolink connects outer towns so well with the city centre that investors can discover some fabulous opportunities in nearby Rochdale, Bury, Altrincham, Didsbury, and all places between.

Indeed, The Sunday Times recently called out Altrincham as one of the best places to live in the UK, noting the quality of its schools, housing and transport links.

In summary

Manchester’s economy is growing and is likely to continue to do so as we near the delivery of HS2 services, which will reduce journey times to London to just a shade over one hour. This massive infrastructure project is the keystone to unlocking the potential of Manchester at the heart of the Northern Powerhouse. As the local economy grows, Manchester’s housing shortage may become worse – and the long-term effects of this imbalance are likely to provide further impetus to property values and rental prices.

There are many opportunities for property investors to take advantage of Manchester’s fantastic property fundamentals, with different property types to suit. Your challenge to benefit from investment here is to find the best opportunities – to help you, download your free Hotspots Guide to Manchester. To benefit from an in-depth discussion of how investing in property in Manchester could boost your portfolio returns, contact Gladfish today to book a meeting.

Live with passion,

Brett Alegre-Wood

Overseas Investor

Is now the time for overseas investors to buy London property?

As Brexit nears, can you afford to miss out on the currency advantage?

One of the most common questions I’m asked by overseas investors is if now is the right time to buy London property. It’s looking increasingly like it is. Foreign investors may never get such an opportunity again, though the investing window is narrowing. In this article, I’ll explain why.

For foreign investors, currency matters

A quick Google search or a few clicks into the currency pages on Yahoo! Finance and you can get a look at how the pound tumbled immediately after the EU referendum back in 2016. The pound’s value has traded in a fairly narrow band since then, bubbling along at around 10% to 20% below its pre-Brexit vote price, depending upon your currency of choice. The uncertainty of the Brexit outcome is holding the value of the pound in this range. In recent months, we’ve had a glimpse of what may happen in the two scenarios most likely on offer: a ‘no-deal Brexit’ or an agreed deal.

  •       In September, when the Prime Minister Mrs May announced the heightened possibility of a no-deal Brexit, the pound fell by around 1.5%
  •       After the preliminary deal was announced in November, the pound rose by around 1.5% – despite the opinion that Parliament would vote against the deal
  •       A day or two later, the pound fell by 1.5%, when five of Mrs May’s cabinet resigned in protest over the deal

Sterling is being held in a tight range. However, it seems to have created a floor. All the potential bad news is out there; the possibility of a no-deal Brexit and its possible effects are well known.

At this moment, it looks increasingly like a no-deal may happen. So the biggest risks are on the upside. If a deal is struck – which is actually in the interest of both the EU and the UK – sterling could take off. The discount that foreign investors could achieve on property deals now could be erased.

At current exchange levels, foreign investors are getting a big bang for their buck. Holding back now risks missing a once-in-a-lifetime opportunity to invest in a global city that benefits from incredible long-term fundamentals.

Foreign investors are returning to London

The signs are that foreign investors are increasing their presence in the London market again, as we head toward Brexit day (March 29th 2019). We saw this in the immediate aftermath of the EU referendum when foreign investment into London peaked as the pound plunged. The proportion of London property sales to overseas investors has receded since, but in the last few months, it has started to rise again.

London property prices are set to bounce

In a series of recent articles, we looked at why London property prices could be about to bounce and where they are likely to rise the fastest. In our article ‘Could this overlooked UK city produce turbo-charged profits?’ we examined fundamentals such as:

  • Massive regeneration taking place and revitalising swathes of brownfield land
  • Enormous infrastructure upgrading and spending
  • Huge population growth-boosting demand for new homes
  • Continuous undersupply of new homes to satisfy demand
  • Increasing FDI in tomorrow’s digital economy

We suggested ignoring the headlines and searching the detail when we asked, ‘Where are the hottest areas for investment in London property?’. We pointed out that some London boroughs offer rental yields of more than 5%, and capital growth is mostly highest in outer London boroughs, such as Redbridge (7.33%), Merton (4.99%), and Waltham Forest (4.82%). Investment in such locations is supported by many factors, including:

  • The infrastructure investment in London (especially Crossrail) has made travel across the city far easier and faster
  • 24-hour underground services allow people to travel more freely for leisure purposes
  • The huge amount of regeneration taking place in many Outer London boroughs is making them more attractive as places to live

London’s population is forecast to grow from less than 9 million today to around 10.5 million in 2041. In a property market that is already suffering from a severe imbalance between supply and demand, this growth is going to boost demand for homes even higher.

The challenge for overseas investors

The uncertainty caused by Brexit is holding sterling, for the moment. This uncertainty, plus other factors such as the reduction in mortgage interest tax relief, is also acting as a dampener on house prices in London. This could all be about to change. In summary:

  •       If a deal is struck, we could see the pound erase much of its post-EU referendum losses
  •       Property prices in London are showing signs that the falls are levelling and they could be about to bounce
  •       Some locations in London are already outperforming national averages

The challenge for overseas investors is, should you buy while the pound is still weak and you are still getting a big discount, or should you wait until stability returns and the potential money-spinning returns from the currency rate are erased?

There are bargains available in London now. Property prices, even if they take a short-term hit, should bounce back in time, with a strong rental market and increasing demand helping to create a good flow of income. For overseas investors, any rise in the pound’s value is money in their pocket.

London property investment benefits from a wonderful basket of strong fundamentals. The question overseas investors should ask is if they can afford to risk the currency advantage they have today.

To find out where our research tells us are the best investment opportunities in London pre-Brexit, get in touch with Gladfish today at +44 (0) 207 923 6100.

Live with passion

Brett Alegre-Wood

Manchester Property Investment

Economic and population growth is boosting returns in Manchester

Manchester is a dynamic city with bags of investment potential

Our clients already knew what Manchester City Council recently confirmed: Manchester is one of Europe’s fastest-growing city economies. As we’ve been saying for a couple of years now, the city’s economic growth is the power behind the strong growth in jobs and increase in population – and this is fuelling demand for homes in and around the city. Great news for property investors, and our prediction is that Manchester is likely to stay a property hotspot for some time to come.

A rapidly growing (and young) population

The ‘State of the city report 2018’ provides some very valuable insight. For example, the city’s reputation as one of the country’s premier university cities has solidified its reputation as a place where businesses have access to a large pool of highly qualified and skilled workers.

Almost 40% of Manchester’s population are graduates. The City Council has been quick to capitalise on this, and has invested in the infrastructure to help grow its digital, cultural and creative sectors. Indeed, Manchester is now a major tech hub in the UK (as we discussed in our article “Manchester: where the digital revolution boosts productive property investment”).

The youthfulness and quality of the workforce here has helped to boost the number of businesses in Manchester to grow by 18% since 2016 – three times the national average. This rate of business growth, and the associated growth in jobs, is a major factor behind the 6% increase in the city’s population in just three years – to 572,000.

A popular city with millennials

It isn’t only the economy that is encouraging millennials to move to Manchester. Youngsters want a fun environment in which to live and work, and Manchester certainly provides this. There are thousands of fabulous bars, bistros and restaurants, and a vibrant nightlife that includes some of the country’s best-known nightclubs. It’s a very diversified and inclusive city, and is home to one of the world’s largest gay districts. Additionally, with countless museums, galleries and attractions there is always something going on or to be done. Oh, and don’t forget the shopping at the Arndale and Trafford centres.

Little wonder, then, that almost four out of 10 Mancunian students who study in other parts of the country decide to return home after graduating. And get this: seven out of 10 students from elsewhere who graduate in Manchester decide to stay put in the city.

The future looks bright for Manchester

Manchester is a vibrant lifestyle city, with a thriving economy that is growing fastest in the knowledge sectors of the future. It’s an attractive place to live, and has benefitted (and still benefitting) from massive regeneration investment.

The thinktank, Centre for Cities, cites urban renaissance in Manchester as a decisive contributory factor in the economic prosperity of the city. It has seen the fastest rate of city centre growth of any city in England and Wales between 2002 and 2015, and its economy is expected to grow by as much as 5% per year for several years to come. That’s way above the UK as a whole and, should these expectations be met, is bound to push the demand for new homes in Manchester even higher.

What does this mean for investors who buy property in Manchester?

Property investors who have bought in Manchester in the last five years have already done well. Since 2013, average prices here have increased faster than anywhere else in the UK in five out of six years. Population growth in the city is booming, and with a strong and future-proofed local economy, Manchester’s city centre is a highly desirable destination for people who want to live in Manchester – especially the exploding population of young professionals.

Personally, I cannot see a reason not to invest in Manchester. For more information about this dynamic growth city, and to read about all the property fundamentals and how they stack up for growth and income potential here, download your free copy of our Manchester Property Investment Guide.

Live with passion,

Brett Alegre-Wood

Property Investment Manchester

For property investment, Manchester is hard to beat

Six reasons you will want to invest in Manchester

Manchester is a highly desirable place to work, live and play. It is being developed at a faster pace than most cities in the UK and is attracting high numbers of businesses and young professionals. For those considering property investment, Manchester should be high on your list of UK locations.

Here are six factors that underpin the potential of investing in Manchester property.

1.    Manchester is a mecca for retail and leisure enthusiasts

Manchester has some of the best retail and leisure facilities in the UK. These range from the world-renowned intu Trafford Centre, to the Arndale, Exchange Square and Market Street, and fantastic boutique shopping districts around the city.

For the culturally minded, there are more than 30 museums and galleries to visit. For fresh air enthusiasts, Manchester is a stone’s throw from several of the UK’s most beautiful rural areas.

Manchester is also the home of two of Europe’s best football teams (Manchester United and Manchester City), and Old Trafford is the home ground of Lancashire Cricket Club.

2.    Manchester is the place for exceptional education

With hundreds of schools in the city region, and 25 primary and secondary schools rated as outstanding within three miles of the city centre, parents are spoiled for choice for their children.

There are also 20 higher and further education establishments. The total student population is one of the largest in the UK – presenting an exceptional opportunity for investors in student accommodation.

3.    Manchester’s tremendous transport

Manchester benefits from road and rail networks that connect the city to all corners of the UK. When HS2 services start running, London will be only an hour away.

The Manchester region is served by regular bus services, and rail and Metrolink services.

Manchester Airport is the North’s only major international gateway. It serves more than 22 million passengers each year – a number that is expected to rise to 50 million by 2030.

4.    Manchester is a city open for business

The city region houses a population of 2.8 million in its 10 metropolitan boroughs – the largest UK city region outside of London.

With a GVA of £63 billion, Manchester’s economy is extremely diverse with major employment sectors including:

  • Financial
  • Advanced manufacturing
  • Life science and healthcare
  • Energy and environment
  • Creative, digital and technology

Many major companies are located here (including names such as Barclays, BNY Mellon, Cargill, Heinz, BAE Systems, the BBC, Google, and IBM) attracted by the city and its stock of well-educated workers. The rate of start-ups here is also strong.

Consequently, the growth of more than 2% per year in employment that Manchester has experienced in recent years is expected to continue.

5.    Regeneration and development are booming in Manchester

Manchester is the beating heart of the Northern Powerhouse, and billions have been spent and are being spent on regeneration and development. Key projects include:

  • The Manchester Enterprise Zone (business and office space, manufacturing, health, and bioscience facilities)
  • The Corridor (now the UK’s largest academic campus)
  • Manchester Science Park (a world-class science and technology hub)
  • Spinningfields (mixed-use development in the heart of the city centre, providing space for mostly financial and professional services firms)

Regeneration projects include:

  • NOMA (an £800 million project)
  • St John’s Quarter (a mixed-use development including 2,500 new homes)
  • Ancoats (developed with £1 billion from the owners of Manchester City FC)
  • Greengate (2,000 apartments to be completed in the next 15 years)
  • Middlewood Locks (A £700 million mixed-use development)
  • Kampus (200 new apartments, and independent bars and restaurants)

The latest Deloitte Crane Survey forecasts more residential units will be delivered in the next three years than in the previous 10 combined.

6.    Manchester – where the population just keeps growing

Manchester’s city population has grown by 6% in the last three years – three times the national average. With more businesses moving to the region, HS2 soon to run services here, and a young, diverse and well-educated population, this rate of growth is set to continue.

Summing up

World-class retail, leisure and education make Manchester a good place to live and learn. The incredible transport links and young and vibrant population make it a good place to do business. Add it all together, and Manchester is a great place for property investment.

You can learn more about the best property investment opportunities in Manchester by contacting the team at Gladfish.

Best Regards,

Neelam Springer


Economic and population growth is boosting returns in Manchester

Manchester is a dynamic city with bags of investment potential

Our clients already knew what Manchester City Council recently confirmed: Manchester is one of Europe’s fastest-growing city economies. As we’ve been saying for a couple of years now, the city’s economic growth is the power behind the strong growth in jobs and increase in population – and this is fuelling demand for homes in and around the city. Great news for property investors and our prediction is that Manchester is likely to stay a property hotspot for some time to come. Read More

4 reasons Manchester is an incredible place to invest in property

When businesses and people love a city, property investors should, too

When I first started investing in property, it was because it made such good sense to do so. Control over your investment, great rental income, fantastic capital gains and the benefits from leveraging are among the reasons why investing in property beats all other investments. To capitalise from all these huge benefits, all you need to do is buy in the best places to invest in property UK. Read More
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