A look at what 2018 might hold for property investors in Manchester.
Manchester’s property market was a hotbed for buy-to-let property investment during 2017, rewarding property investors with above-average rental yields and capital growth. 2018 promises more of the same, as the benefits of devolution of power and finances to the City Council gather pace. In this article, we look at what this year may hold for investors in Manchester property.
Development may expand across the city
The focus for property developers has been in the city centre for a few years now. It may evolve in 2018, with developers seeking to expand their portfolios to smaller city centres. It is here that revamped railway stations could boost property investment opportunity, with great transportation hubs into Manchester city centre. Importantly, land prices have not yet begun to soar in these locations.
We’d expect demand for residential units in the city to stay strong, but also to support new development radiating from the centre. Keep an eye on residential planning and development beginning in the Northern Gateway and in East Manchester, where values could start to rise more aggressively.
New properties for all tenant types
This redirection of development is at least in part prompted by the conviction of Manchester’s mayor to deliver on his promises of more new homes. However, the properties created are likely to be different to the new builds in Manchester’s centre. Instead of shiny glass towers, developments will probably focus on lower-level, high-density housing.
It will offer investors the opportunity to purchase highly desirable townhouses and apartments in three or four-storey blocks around transport hubs. Ideal for the whole range of tenants: students, young professionals, families, and silver-haired renters.
Premier League property planned
The mayor’s plans for a rapid expansion in quality residential property look set to leap forward in 2018. A master plan was discussed in December, which lays out the potential for development linking the centre to Eastlands, with thousands of new build homes on developments lining the Ashton Canal and the River Medlock.
At the heart of these plans, a new sports university at Manchester City’s Etihad Stadium will accompany new research facilities, new businesses, and student accommodation. Manchester is already positioning itself as one of the UK’s premier locations for digital businesses. This new university expansion could make the city a mecca for sports-related businesses too, in what would be the country’s most modern sports innovation zone.
Premier property development with Premier League money
Manchester’s two Premier League teams are riding high this season. They’re number one and two in England, and both have progressed to the knockout stages of the lucrative European Champions League. Manchester City’s owners, the Abu Dhabi United Group, are ploughing in £1 billion of investment capital to promote residential development along this corridor.
The plans for development aren’t without their challenges, however. Existing properties here are owned by many landowners. The council will need to negotiate the purchase of land and property and to relocate existing businesses.
It is especially true in Holt Town, where a new neighbourhood is envisaged. There will be new build homes, mill conversions, and low-level apartments. However, the council may need to impose compulsory purchase orders to ensure that landowners don’t slow down progress by holding out for inflated land valuations.
It’s a fantastic strategy and will develop housing in a highly desirable area of Manchester, with thousands of homes offering huge investment potential, stretching from Piccadilly station to the Etihad. There will be a mix of high-density apartments and townhouses. The entire project promises to transform this part of Manchester, making it more accessible and a prime destination for professionals, families, students, and businesses.
Where should your focus be in 2018?
The Mayor of Greater Manchester and Manchester Council have given some huge hints for property investors. They plan to expand Manchester’s residential offering within walking distance of transport hubs. It is where residents will be best connected to work opportunities. But there must also be green space, bars, restaurants, and sports and leisure facilities nearby. It’s lifestyle living at its very best. It’s Manchester.
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