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,