Employment growth and gross value added will continue to rise in Manchester between now and 2021, cementing the city’s place among the top cities in the country for investment.
- Economic growth in the UK over the next three years will be recorded strongest in cities such as Manchester
- Job numbers in Manchester will increase faster than anywhere else in the country, while gross value added will “continue to outpace the North West and UK benchmarks”
- This growth will have a direct impact on the performance of Manchester’s residential property market, with international investors expected to continue their focus on the city in the coming years
Some of the UK’s strongest economic growth between now and 2021 will be found in Manchester.
That’s according to the latest research from EY, one of the “Big Four” accounting firms.
It found that employment growth in Manchester will be the fastest in the UK over the next three years, while its gross value added (GVA) will be just 0.1% less than that of Reading, the projected UK leader.
The research showed that Manchester’s annual employment growth rate was recorded at 1.2%. This equates to 16,300 new jobs being created in Manchester each year over the next three years.
Manchester is only behind Reading in GVA projections, trailing the Berkshire commuter hub by just 0.1%, although Reading’s employment growth is forecast to be lower. Manchester’s 2.2% forecasted annual GVA by 2021 is also significantly higher than that forecast in London.
Crucially, Manchester’s GVA in a majority of major service sectors outpaces “the north west and UK benchmarks”.
“Manchester’s success is much lauded and rightly so – that the city is once again leading the UK with comparatively strong employment and GVA figures is of course great news,” commented Bob Ward, the North West Senior Partner at EY.
These projections continue Manchester’s recent track record of growth, a key driver behind the performance of the city’s property sector.
Increasing job numbers will continue to place further pressure on a property market of low supply. It’s estimated that Manchester’s residential housing delivery will meet just 25% of annual demand by 2022. The result is price and rent growth anticipated to be 81% and 40% higher than the UK average respectively during this period.
It’s helped to establish Manchester as a major hub of international property investment, with investors across key territories worldwide keen to acquire prime real estate in a market many believe is just at the start of an exciting growth cycle.