Housing market growth is top in Manchester for five out of last six years
House prices in Manchester have increase more than anywhere else in the UK, exceeding the UK average in five out of the last six years, according to new research.
This culminated in a significant gap in 2017, when the average house value in Manchester rose 11%, against a regional average of 6%, and a UK average of just 5%, the date from real estate agency Cushman & Wakefield shows.
Manchester also leads the way in house price inflation when compared with all other core UK cities. In the 12 months to July 2018 prices in Manchester rose just under 9%, compared to Leeds at just 3.8%. In London house price inflation saw a drop of 1%.
‘Our research demonstrates that year on year growth within the Greater Manchester residential market has continued apace, outperforming the wider region and once again exceeding the national average, a trend that has been consistently evident in five of the last six years,’ said Julian Cotton, associate director at Cushman & Wakefield.
‘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,’ he added.
The research also shows that the new homes market is also looking bright in Manchester, with forecasts showing that house prices in the city are expected to rise to 57% by the end of 2028.
Bristol is second at 53%, Birmingham and London expected to rise at a similar level of 46%, with Liverpool faring the least at 20%. Once again, Manchester is showing the greatest increase of all core UK cities.
Despite this upward pressure on house prices, the Manchester new homes market still benefits from a very strong domestic demand due to only a 16% difference between the average price of a new home and existing home in the city, it explained.
But this is not the case in a number of other core UK cities, where in some cases, such as Newcastle, new homes can cost nearly 50% more than the average existing home.
‘Seen as the regional centre for finance, commercial and retail with world class transport links, Manchester is now one of the best cities in Europe to do business in. Major corporations such as the Co-operative Group, Amazon, the Royal Bank of Scotland, the BBC and ITV have all chosen to establish key operations within the city,’ cotton pointed out.
‘The relocation and start-ups of these major corporations and small independent businesses has resulted in the creation of new jobs. It is expected that around 3,100 new jobs will be created per year across Manchester to 2034. Many of these jobs will be high salaries based in the city centre. As a result, Manchester’s population is anticipated to grow by 3,500 people per year over the same period creating an ever-growing demand for housing,’ he said.
‘A fundamental driver in the popularity of the North West as a region in which to invest has been price. Price points perceived as affordable, particularly from an emergent overseas market and a somewhat overpriced, oversaturated London investor market, have proved popular with buy-to-let investors acquiring new-build and second hand stock,’ he added.
Manchester’s rental market is also rising higher than in any other UK city. Rents were up by 10% to April 2018, compared to Leeds in second place at 8%. London again shows a negative where rents have fallen by 8%, beaten only by Newcastle where rents have fallen by 9.5%.
Cotton pointed out that the rental market absorbs many of the 100,000 students studying at the University of Manchester, Manchester Metropolitan University, the University of Salford and the University of Bolton, as well as young professionals requiring the convenience of a central, vibrant location.