Big Companies See Big Potential
Manchester is by far the most popular city at present, and the number of FTSE 100 companies to have offices within its boundaries has doubled over recent years. This influx of blue chip companies has steadily seen the housing market in Manchester change, and many believe other cities in the north are on course for similar growth as more companies open offices across the region.
Greater Manchester is all set for an elected mayor in 2017 and devolution also means that the local authorities, rather than Westminster, will handle all of the city’s housing from now on. This should see a more bespoke housing plan put in place for the city, but the benefits of this for investors remains to be seen.
Average yields in the city have been estimated recently at around 8% . However, in recent months it has become increasingly difficult to source below market value investment property due to the increasing demand from the domestic market. There are still decent opportunities to be had here, but investors should be aware that much of the developments are overpriced. Surrenden Invest have recently secured exclusive deal terms on Bridgewater Point, Salford. Situated in one of Salford’s high demand growth areas, the development is ideally located, bordering directly on Salford Quays, the home of MediaCityUK, Europe’s largest and most acclaimed creative hub.
If you are one of the canny investors to already have a foothold in the Mancunian market, you’re sitting pretty, but what of those who are looking to enter the northern property market for the first time?
Look No Further Than Leeds and Liverpool
Those in the know are branching out to the other main cities of the north, with Leeds and Liverpool heading the way. Leeds has an ever-growing financial district that is second only to London.
It is Liverpool, however, that is really capturing the attention of the savvy investor, now the UK’s fastest growing city has benefitted from an abundance of multimillion- pound regeneration schemes that have completely transformed the area into a global destination, all of which have significantly boosted the local economy.
Regeneration Bodes Well for the Future
Research indicates that Liverpool is one of the strongest rental markets outside the capital, thanks to a severe shortage of new-build stock. Property prices are currently sitting at around 23% below where they were when the global economic crisis first began to emerge back in 2007, which indicates that a price correction of the likes seen in Manchester in recent years is around the corner.
There is currently huge investment in the dockland area of Liverpool, with developments such as X1 The Terrace at The Quarter providing high quality homes in this location. Seeing regeneration of these areas take shape will only encourage further investment into the city and momentum will undoubtedly grow from there.
