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Manchester Property

Which city has the fastest-growing property prices in the UK?

Manchester property investment looks set to continue its winning streak

According to Cushman & Wakefield, the global real estate agency, property price growth has been faster in Manchester than anywhere else in the UK in five out of the last six years. In 2017, average price growth of 11% was more than double the national average.

In this article, you’ll learn that Manchester is recognised as a property hotspot globally, and I’ll introduce you to an area which I think has great potential to outpace even the highest average property investment performance in Manchester.

Manchester is a city with high liveability

The Economist Intelligence Unit (EIU) recently released its annual survey of the world’s most liveable cities. Manchester has soared through the rankings.

The Global Liveability Index rates 140 world cities across a range of lifestyle variables. These include 30 factors in five broad categories: stability, healthcare, culture and environment, education, and infrastructure.

Austria’s capital Vienna has taken the top spot. Of the UK’s cities, Manchester came top in 35th position: a whopping 13 places above London. However, Manchester’s position in the top quarter of global cities measured by the index doesn’t tell the whole picture. It is surely the standout performer, having risen an incredible 16 places in the league table compared to its position last year.

Manchester is a resilient city

The survey’s editor and Head of City Practices for the EIU, Roxana Slavcheva, noted how Manchester had swept aside the Manchester Arena terrorist attack of last year. Indeed, its improved security score was a factor in its meteoric rise, which now sees the city 2.2% ahead of London in the EIU scoring system.

She also noted that, “What is more, Manchester also represents a regional trend over the past year, where there have been notable improvements in security in several western European cities which have shown resilience in their recovery from terrorist attacks.

Manchester’s improved resilience has been reflected in the performance of property prices in the city.

Property prices still going strong in Manchester

Manchester’s property prices have continued to outpace those of other UK cities. Turning back to the Cushman & Wakefield analysis, Manchester property prices increased by 9% between July 2017 and July 2018. That’s a colossal performance in the face of so much negativity surrounding UK property as we move through the Brexit timeline.

Cushman & Wakefield are almost as bullish about the prospects for property in Manchester as I am. Their Associate Director Julian Cotton has said, “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. Manchester city centre and Greater Manchester as a region has swiftly become a desirable and immensely lucrative location in which to invest.

For longer-term buy-to-let investors, the potential returns look particularly attractive. There is a high proportion of students compared to the population, the population is growing rapidly, as are the number of businesses, and the demand for rental property is following suit. Consequently, rental prices have been rising strongly: up by 10% in the year to April 2018.

Trafford could be the micro hotspot for your investment

At the edge of the city centre, Trafford is about to undergo largescale regeneration that will transform another swathe of the Manchester landscape. Trafford Council is working with developers on a number of schemes. The regeneration and redevelopment will provide a huge boost to the area’s offering of retail, leisure, education and housing. It will also take advantage of Trafford’s two ‘Old Trafford’ sporting arenas. Highlights include:

  • The White City Retail Park is set to be redeveloped, along with supporting infrastructure and improved pedestrian access
  • There will be a new tram station near to Manchester United’s Old Trafford stadium, providing improved transport options
  • New and improved public spaces
  • A new civic plaza linking Lancashire County Cricket’s Old Trafford home with the town hall
  • A new ‘Town Hall Quarter’
  • A new ‘Campus Quarter’, which will host the sports and media university backed by a conglomerate of Bruntwood (the property developer), Trafford Council, Microsoft, and former Manchester United captain Gary Neville
  • New housing to support a growing population as the quarter benefits from upgrade and regeneration

Trafford is one of our locations of choice in Manchester. Having already benefitted from huge investment into regeneration, this latest regenerative effort is the icing on the cake. It’s a prosperous area, with weekly wages above the national average, and home to the famous Trafford Centre (Intu), the largest shopping centre in the UK.

While the average house prices here are above the Manchester average, the dynamics of the local economy and the investment into it leads me to believe that an investment here could have serious potential to produce higher-than-average rental yields and long-term capital gains.

To learn more about Trafford, hop over to our Trafford Property Investment Guide for a more detailed snapshot of the factors that underpin our confidence. For a more particularised chat about the best current property opportunities, contact Gladfish today to book a meeting.

Live with passion,

Brett Alegre-Wood

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

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

Manchester a world class city for foreign direct investment and property investors

Manchester: a world-class city for foreign direct investment and property investors

When businesses want to invest, so should you

There has been much made of an impending collapse in foreign direct investment (FDI) into the UK since the EU Referendum. Yet, independent research continues to pour scorn on such forecasts. The latest to do so is IBM, the global IT giant headquartered in the United States. In its latest global business report, Global Location Trends 2018, IBM ranks Manchester and Liverpool in the top 10 of world cities for FDI. Read More