Manchester
Featured Properties in Manchester
Browse through our current investment opportunities in the Northern Powerhouse that is Manchester.
Investing in Manchester property has been one of the staples for property investors worldwide for many years now and there really is no surprise as to why. Manchester has changed almost beyond recognition in the last 20 years showing growth of 383% since the year 2000, this is compared to a national average of 185%. Big numbers.
The reason? Manchester is the centre of the ‘Northern Powerhouse’ and has all the fundamentals one would look for in any major European city. 100,000+ students across five universities? Check. The second-highest student retention rate in the UK? Check Over 80 of the FTSE 100 companies with a presence in Manchester? Check. Major companies moving to the city in droves, including the BBC and ITV? Check. Huge levels of investment into regeneration across the city? Check. A fantastic music scene and one of the coolest cities to live in the world? Check.
All these factors contribute toward Manchester attracting new tenants to the city and keeping them there which is great news for property investors looking to invest in Manchester.
Manchester is somewhere any property investor should consider and below are three of the main reasons why anybody looking for a UK property investment should be looking very closely at Manchester.
Why invest in Manchester?
Investing in Manchester property has been one of the staples for property investors worldwide for many years now and there really is no surprise as to why. Manchester has changed almost beyond recognition in the last 20 years showing growth of 383% since the year 2000, this is compared to a national average of 185%. Big numbers.
The reason?
Manchester is the centre of the ‘Northern Powerhouse’ and has all the fundamentals one would look for in any major European city.
Over one-hundred-thousand students across five universities? Check. The second-highest student retention rate in the UK? Check. Over eighty of the FTSE 100 companies with a presence in Manchester? Check. Major companies moving to the city in droves, including the BBC, ITV, Amazon and Google? Check. Huge levels of investment into regeneration across the city? Check. A fantastic music scene and one of the coolest cities to live in the world? Check.
All these factors contribute toward Manchester attracting new tenants to the city and keeping them there which is great news for property investors looking to invest in Manchester.
Manchester is somewhere any property investor should consider and below are three of the main reasons why anybody looking for a UK property investment should be looking very closely at Manchester.
Epicentre of the Northern Powerhouse
The city of Manchester is the economic hub of the Northern Powerhouse. As a result of this successful economic initiative, Manchester’s GVA has grown by 63% since 2000, totalling £41.3 billion as of 2021. The number of residents has grown from 851,780 in 2000 to 1,060,680 in 2021. By 2035, the population is expected to increase 36% from 2000, reaching in excess of 1,154,970 residents.
The growing population has added further pressure to an undersupplied housing market. In fact, 5,545 housing units are expected to be completed each year between 2020 and 2031, which still falls below the average annual housing requirement of 6,515 units. Taking the previous backlog into account, an undersupply of at least 82,505 housing units is anticipated by 2035. The pressure will continue to fuel house price growth, which is anticipated to reach over 23.5% between 2022 and 2026 while rental growth sees a 15% increase making Manchester prime for property investment.
So, it should come as no surprise that Manchester’s property market is flourishing. The strong performance makes it an ideal choice for new and experienced property investors alike.
A business-friendly environment, a highly trained workforce and a rapidly growing population have created the conditions for Manchester to thrive in the modern world – and a booming economy growing significantly faster than the UK average is the city’s reward. Huge amounts of investment promise to keep the momentum going and furnish Manchester with a bright future.
Manchester is a well-connected city, both domestically and internationally.
The airport is the UK’s busiest outside London, handling up to 30 million passengers each year. There are routes across the entire globe, which allow business, trade, and tourism to flourish.
Manchester is rated as a Beta world city, and as such is the UK’s only such city. Economically that puts it on a par with other important world cities such as Geneva, Stuttgart and Vancouver.
To add to this, the second phase of the HS2 is due to open circa 2035. HS2 will cut travel times from Manchester to London in half. A journey that currently takes 127 minutes will instead take 67 minutes. This will undoubtedly be a catalyst for further growth in the region, delivering new jobs, new homes, and new opportunities.
A skyline filled with cranes and dozens of large building projects serves to illustrate the health of the city and its position at the centre of the UK’s fastest-growing region. Manchester’s economic strength, growing population, world-class expertise in modern industries and the lack of available housing make this the ideal time to invest in Manchester property and secure the stable, long-term returns which are on offer.
The rise in Manchester’s house prices over the last 10 years (JLL)
Time it will will take to get to London upon completion of the HS2 high-speed train line
Passengers who use Manchester’s airport each year. The largest outside of London.
Huge Economic Growth
Manchester is the centre of the Northern Powerhouse and one of the most productive and fast-growing cities in Europe. Its city centre economy alone is projected to be worth more than £6bn a year and directly employ more than 150,000 people by the end of 2025.
This makes the city centre responsible for 10% of all jobs in the region and one of the UK’s fastest-growing employment centres. Manchester’s secret is the diversity of its economy. It is a hotbed for start-ups and small businesses in a whole range of sectors, however, can also cater for over three-quarters of the UK’s FTSE 100 companies who have a base in the city.
Manchester’s business scene has exploded in recent years. Data from the Centre for Cities shows the city has the 10th highest number of start-ups per capita each year.
In fact, Manchester’s start-up scene attracted over £500m in venture capital in 2019. It is the fastest-growing location in Europe for such investment.
And now major employers are opening offices in the region. The BBC began the trend in 2011 by moving headquarters to MediaCityUK in Salford Quays. The likes of Amazon, Google, Microsoft and others have since followed.
Unsurprisingly, this has led to more jobs. The Centre for Cities shows a 12% increase in private sector jobs since 2015, which is the 4th highest in the UK.
Employers are moving to the city to ensure they attract and keep the best talent. Remember, graduates tend to stick around Manchester – it has regularly been voted as one of the coolest cities in the world to live in, after all.
The wider city region economy is another notable economic success story which generates more than £67bn of revenue each year and is expanding faster than the national average according to figures from the Office for National Statistics.
All of this is a huge contributing factor to the massive 27% rise in Manchester property prices over the last 5 years or 83% in the last decade.
House price growth in Manchester in the year to July 2021 (Hometrack)
The size (£) of Manchester’s economy (ONS)
Expected rise in Manchester rents by 2025
POPULATION GROWTH
Greater Manchester is home to 2,854,540 people. It includes ten metropolitan boroughs: Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan, and the cities of Salford and Manchester. The area is one of the country’s largest metropolitan regions, and the second-most populous area in England, outside of London as of 2021.
Due to its large population, Greater Manchester is one of the most economically diverse in the UK and is one of the main drivers of the northern economy. At present, there are approximately 1.4 million jobs that contribute to Greater Manchester’s GVA of GBP67.2 billion (2021). The area generates nearly 40% of total output (GVA) in the Northwest and 19% across the North of England.
The outstanding employment opportunities on offer attract more and more young professionals to Manchester every year, and consequently, the city’s population is increasing rapidly.
This rise in population has enhanced the economy significantly while placing more strain on the already undersupplied housing market. Despite the considerable progress in construction activity, the housing supply has been unsuccessful in meeting demand. Since 2011, 37,460 units were added to the housing stock, which totalled 455,015 units as of 2020. As a result, there is a substantial undersupply of homes, with just 34% of the city’s housing needs fulfilled over the past 9 years. House prices have consequently increased by 82% over the past 10 years compared to the national average of 53%.
All boroughs of Greater Manchester have grown in population, but population growth has not been distributed equally across the metropolitan area. Manchester city centre and Salford alone account for nearly 42% of the total growth seen in Greater Manchester, while Bolton, Rochdale and Wigan account for a further 31%. Large-scale apartment schemes in the centres of Manchester and Salford have driven the huge increases in population in these areas, a trend which looks set to continue.
The latest Greater Manchester Forecasting Model from Manchester City Council shows that we should expect the population of Manchester to grow from its current level of approximately 553,000 to more than 625,000 in the next five years. This means that at least 70,000 additional people are due to make Manchester their home in the near future – all of them needing accommodation.
This picture shows no signs of changing in the future due to supply lagging far behind demand – a gap that is going to keep growing every year. The Deloitte Manchester Crane Survey 2021 shows that approximately 12,000 homes are scheduled to complete in the city centre by the end of 2025, a number far below what will be required to cover the Council population projections. It is for this reason that JLL has estimated a rise in rents of at least 13% over that timeframe.
The expected housing backlog in Manchester by 2035
Predicted population growth in Manchester by 2025 (GM Forecasting Model)
Greater Manchester’s population in 2022 (ONS)
Manchester investment hotspots.
Are you wondering where the best place to invest in Manchester is?
Well, there are many options available across the city. Here we’ve highlighted a few popular choices with excellent prospects which should be considered by any serious property investor looking to invest in Manchester.
If you can’t find what you’re looking for, please feel free to get in touch with us today to speak with one of our senior property consultants who will be happy to assist with your enquiry.
Download your FREE UK 2022 Buy-To-Let Property Guide.
After starting positively with the worst of COVID looking like it is behind us, 2022 has certainly managed to throw up a number of surprises for investors everywhere. However, it is not all doom and gloom.
In this guide, we drill down into how the market has fared for investors so far, and where it looks to be heading.
We are here to help you navigate the market with our consultative, informed and, above all, totally impartial approach.
For an informed overview of what is currently happening in the UK property market feel free to download our UK Buy-to-Let 2022 Guide here.
By submitting your details via this online form you agree to be contacted via email/phone/SMS by Mobibi Invest in relation to its property investment brands. We do not share your personal details with third parties.
For further information, please see our Terms of Use.
Manchester property of the week.
Our featured Manchester property of the week. To find out why we think it’s a great investment opportunity get in touch today.
Find the perfect Manchester investment property for you.
If you would like to find out more about exactly how we can help you achieve your financial goals through property investment and, of course, why we are different from the others, please do get in touch today for a no-obligation consultation.
Likewise, even if you can’t find what you are looking for on our site, our decades’ worth of experience means we can find some off-market opportunities that could work for you.
Get in touch today to see how we can help.
By submitting your details via this online form you agree to be contacted via email/phone/SMS by Mobibi Invest in relation to its property investment brands. We do not share your personal details with third parties.
For further information, please see our Terms of Use.