Property supply coming to market in Manchester has fallen far more than the national average, experiencing a 70% drop in the last eight years.
- Property stock in Manchester has fallen by 70% since 2008, with two bed homes across the region experiencing the largest decrease at 75%
- Manchester’s fall in property stock was one of the most dramatic in the country, with the national average some 51%
- With 85% of residents in the city centre living within the private rented sector, Manchester offers investors the best returns in the country as supply fails to match demand
The number of homes for sale in Manchester has fallen by 70% over the last eight years.
Supply fell far more than the national average according to the research by Home.co.uk, with the number of homes on the market dropping significantly from 13,334 in January 2008 to 3,960 in June 2016.
Falling by 75% since 2008, two bed properties across the region have seen the largest decrease in stock from 5522 to 1363 in June this year, while three bed properties were down by 68%.
Average property prices have seen a rise over the past eight years, with an increase of 2% since the previous high in January 2008, from £192,544 to £197,020 this year.
Doug Shephard, Director of Home.co.uk, commented: “The drought has meant prices have headed skywards, but there is so little property passing through the market that large estate agency chains have been issuing profit warnings as they see their turnovers decline.
“Without doubt, the growth of the private rented sector has played a significant part in the supply crisis, as the average home changes hands less frequently than before. Moreover, buy-to-let remains a very popular investment choice in the current economic climate.”
There was also a considerable drop nationally, with a 51% fall in the number of properties for sale in England and Wales over the last eight years, from 855,585 in April 2008 to just 415,038 in April 2016.
With a continuing shortage of supply in Manchester, the northern city has seen its popularity as a location for property investment steadily increase. As demand grows for rental accommodation in Manchester, so will rental yields for investors.
Named by HBSC in 2015 as the city in the UK offering the highest rental yields, Manchester is a stronger portfolio asset than London and in need of an increase in appropriate rental stock, particularly two bed properties, to meet growing demand.