The Manchester property market is expected to see capital value growth of 28.2% over the next five years, as a result of growing demand and low housing supply.
- North-west property price growth is outpacing the rest of the UK
- Manchester is predicted to see price growth of 28.2% by 2021
- Property advisor JLL expects Manchester to be among the first choice for international investors targeting the UK’s build-to-rent sector
North-west house prices will increase by 18.1 % over the next five years, according to research carried out by property advisor JLL. This data follows a strong year for Manchester’s residential sector in 2016 which saw a 16% growth in capital values.
Buoyed by high demand and low supply, growth in the region is currently outpacing the rest of the UK. JLL predicts that as a result of this undersupply, rents and capital values will continue to increase dramatically in the coming years.
Capital value in Manchester is expected to see growth of 28.2% in the next five years, while rents are forecast to increase as much as 20.5% by 2021.
While the EU referendum vote has seen a marginal slowdown in transaction levels and a mild easing in prices, research experts at JLL are optimistic that Brexit will not negatively impact the growth of north-west property prices.
Adam Challis, Head of UK Residential Research at JLL, said: “In markets where there’s still a significant undersupply we’re set to see growth over the next five years, and the north-west in particular is a prime example of this.”
Stephen Hogg, Head of North West Residential at JLL, said: “Our five-year forecast points to the continued strength of the residential sector in the Northern Powerhouse. Manchester now offers some of the best returns in the UK and is at the forefront of the build-to-rent market in the UK regions.”
According to JLL, Manchester requires 3,300 new homes each year in order to meet current demand and expects build-to-rent developments will soon be at the centre of new schemes in Manchester. With a large number of developments in the pipeline and a significant price growth forecast, the city is expected to be among the first choice for international investors targeting the UK’s build-to-rent sector.