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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

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.