The Greater Manchester new-build sector accounted for 5.5% of all new properties sold across England in 2022, as interest in the region continues to increase among investors.
Property investors honing in on the country’s brand-new home completions are seeing a healthy level of supply cropping up in the Manchester new-build market, with 634 properties transactions made last year, according to research from Alliance Fund.
While the figure lags behind London in terms of sheer volume, which saw 1,335 new homes sold over the course of the year – the highest number in the country – it represents a larger proportion of the sales market as a whole, indicating a strong appetite among buyers.
Across England as a whole, Alliance Fund found that 11,608 new-builds were sold last year. This accounts for 2.1% of total market transactions, a percentage well below that seen in the thriving Manchester new-build scene.
The fact that so much housing market activity was driven by the new-build sector in 2022, and particularly across parts of the country away from London, is a positive sign for developers planning sites for the coming years.
An abundance of opportunity
In terms of its city centre growth, Manchester was recently listed as one of the most promising places in the UK in terms of new developments and construction activity in Deloitte’s annual crane survey.
According to that report, 25 new projects went under construction in both Manchester and Salford city centre during 2022, with 2,734 new homes delivered last year. The ongoing high demand among buyers in the area, and particularly in the Manchester new-build space, is keeping activity levels strong.
In Alliance Fund’s survey, the Greater Manchester new-build market also ranked behind London for the number of transactions as a percentage of all new-build sales. London featured in 24th position, with a 2.1% ratio, compared with Greater Manchester’s ranking of 14.
The leaders in the table were arguably locations that covered much larger areas, too, with the county of Warwickshire in first position, where new-builds made up 3.9% of all transactions. This was followed by Shropshire (3.8%), Wiltshire (3.7%) and Buckinghamshire (3.4%).
According to Iain Crawford, CEO of Alliance Fund, the figures reveal the fact that developers are and should be taking a broad approach to location choice, rather than just honing in on London.
“London certainly remains the dominant force within the new-build sector when it comes to the sheer volume of new homes sold in the last year and with such high-demand, it’s understandable why developers devote so much of their attention to the region,” he said.
“However, there are a high number of locations where new-build sales have driven market activity to a far greater extent when it comes to these transactions as a proportion of all homes sold.
“This appetite for new-build properties presents developers with an abundance of opportunity when it comes to where they choose to build, and while London will no doubt remain a consideration, it’s certainly not the only area of focus.”
Invest in a Manchester new-build
For property investors wanting to capitalise on the vast array of opportunities in the UK new-build market, Manchester is currently an excellent location to focus on. It was recently tipped as the top UK city in which to invest in 2023 in research from money.co.uk.
While house prices continue to climb in Greater Manchester and across much of the north west thanks to growing demand for property, it remains a relatively affordable location compared with London and the south. It also tends to generate stronger yields for landlords.
There are numerous new residential developments across the Greater Manchester area for anyone looking at the Manchester new-build space. At BuyAssociation, we have a long history with setting up investors with properties in Manchester, and many of our projects are available off-plan, direct from the developer.