The Manchester property market is set to be one of the UK’s most lucrative over the coming years.
- City centre property assets in Manchester set for 26% price growth
- Rental prices in Manchester are also set to rise 9% next year
- The Manchester property market is beginning to attract the kind of international buyer that has so far only operated in London
City centre Manchester property investments are set to appreciate 26% over the next four years.
This forecast was made by property consultancy Jones Lang LaSalle at a Residential Predictions breakfast seminar this week, which outlined that the city’s prime two-bed apartments will grow in value from £280,000 to be worth £354,000 by 2019.
Manchester is now the UK’s second city and unique among the UK’s regional markets. There is a dramatic short supply of homes, with only half of the city centre properties that are needed to meet demand in the pipeline and this shortfall is instigating a new market cycle.
Both rental values and capital growth can be expected in the next few years. Rents currently average £975, but are predicted to rise by 9% in 2015 and 26.3% overall by 2019.
Consequently, Manchester is now attracting the kind of international property investor that has traditionally only operated within the London market.
Stephen Hogg, Lead Director of Residential at JLL in Manchester, explained: “The market in Manchester is indicative of its position as the second city and, along with Birmingham, is seeing flocks of new occupiers who have been priced out of London looking for homes.”
He added that the level of growth is sensible and there is now an opportunity to capitalise on the shortfall driven by the increased occupier demand.
Recent research by Hometrack found that the rate of property price growth is accelerating in northern cities such as Sheffield, Manchester, Liverpool, and Newcastle, while it is slowing in southern cities such as London, Oxford, Cambridge, Bristol and Bournemouth, after it reached an affordability ceiling.