A modern economy and growing population are driving investment returns
Ask anyone in the North of England about Manchester, and the first thing they are likely to say is that it always rains in the city. The English do like discussing the weather. However, there’s a rather different and far more pleasant downpouring in Manchester: money.
Investment here is snowballing. Regeneration is transforming neglected areas of the city, without destroying its soul. It is sucking in new businesses and young, well-educated professionals eager to work for a great company in a great city. This combination is music to the ears of professional property investors.
A powerhouse with a healthy future
Manchester is the designated capital of the Northern Powerhouse, making it a hotbed for property investment. It’s also a hotbed for businesses. Its technology and digital sectors are booming, as are the life sciences and health sectors.
Manchester is home to both the BBC and ITV. The development of MediaCityUK, a futuristic landscape straddling Salford Quays, is where you will find the cream of the nation’s digital creatives – as well as a few interlopers from overseas! Graduates from Manchester’s universities are more likely to stay here than any other UK university city outside London. More than half of them do.
It’s not just the digital economy that gets the juices of young, highly qualified professionals flowing here. Manchester is home to several research institutes, and rapidly-growing life sciences and health economy. There is now a significant number of people employed in this sector in Manchester. Recently, NHS England announced Manchester as a local health and care record exemplar. Manchester will be the driving force behind the region’s integration of health records for 2.8 million patients, enabling healthcare professionals to access essential information in one place.
Other new-age economy initiatives include the Corridor Enterprise Zone, the CityVerve Internet of Things, and the Greater Manchester and Cheshire Life Sciences Fund. Alderley Park has been converted into a Life Science cluster, and then there is the Citylabs campus on Oxford Road.
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Consequently, the Manchester economy is forecast to be among the fastest-growing in the UK over the next decade, with Oxford Economics estimating the local economy will grow by 17.6% between 2017 and 2024.
With economic growth comes property investment opportunities
Manchester property values are rising at one of the fastest rates in the UK at 5%, around twice the average house price rise. And while the average property value here is around 15% below the national average, the rental market is strong, producing average rental yields of more than 6%.
Many parts of the city were neglected in the years following the Global Financial Crisis, but since 2014 development has picked up. New housebuilding and regeneration were encouraged not only by infrastructure investment but also by growing demand for property here. Huge development taking place in the city has not been able to keep pace with demand, and property prices have increased by more than 25% since the start of 2015.
Much of the demand is for rental property. Manchester is not only home to some of the most innovative companies in the world, attracting young professionals to work here, but also to one of the best nightlife scenes in the UK. Combine these qualities with affordable rents and superb transport links, and you have a city full of incredible residential investment property opportunities. To discover the best of these, contact one of the Gladfish team today on +44 207 923 6100.
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