The regional cities of England continue to offer some of the best opportunities for investors, and Manchester continues to prove itself as a top choice.
House prices in Manchester have risen more than any other city in England over the last 20 years. In fact, since 2000, house prices in the north-west city have skyrocketed by 481%, according to Land Registry figures, and in recent years the location has continued to lead the way even while prices elsewhere have levelled off.
Going back over a 30-year history, the city’s population has also grown more than any other city in the country, which provides some of the answer as to why demand has risen at such a rate.
Looking into why so many more people have been drawn to Manchester, the city’s skyline has changed almost beyond recognition thanks to scores of major regeneration and redevelopment projects within the city and towards the edges of it, creating new neighbourhoods to live and work.
The residential sector has thrived over the past decade as more and more people are choosing city centre locations, and newly built homes in Manchester have been attracting both homebuyers and property investors, who can capitalise on the area’s extremely high tenant demand thanks to its growing employment prospects.
Manchester setting an example
According to a recent article by Elliot Vure from Together, Manchester can even be used as a blueprint for the development of other regional cities across the UK, particularly as the focus for many investors continues to move away from London.
He wrote: “Realistic optimism, combined with a drive to lend and build, can unlock the city horizons of the future – just take Manchester as an example.
“If you were to show a picture of the current skyline to a Mancunian back in 1974, they would never believe it was the same place.”
Skyscrapers, modern mixed-use blocks and more have all shot up across the city in recent years, and the latest Crane Survey by Deloitte is a clear indication that the transformation is far from over. Part of what makes Manchester an exciting destination for investors is the fact that there are still areas earmarked for more investment.
Elliot adds: “Glowing with ever-increasing infrastructure investment, a famous nightlife renaissance and some of the tallest structures outside of the capital, modern Manchester even attracts luxury global fashion brands, who utilise the streets as a backdrop to showcase the modern Manchester vibe.
“And this story isn’t unique, skylines across the UK continue to evolve.”
Optimism for investors
As Eliot points out, despite a levelling off within the property market over the past couple of years, as house price growth and transaction levels continue to edge closer to where they were pre-pandemic – before they accelerated from 2021 – property investors remain optimistic.
Research from Together found that 31% of professional landlords, property investors and developers expect to buy more property over the next 12 months. Almost two third (59%) of landlords plan to increase rent across their portfolios over the coming years.
A further 68% of those surveyed said they felt optimistic about the outlook of their property venture for 2024.
As investment continues to drive change and improvement across Manchester city centre and the surrounding area, the number of jobs coming to the area is multiplying. This is further boosting rental demand, meaning investors are confident that when they enter the Manchester market, they are benefiting from the city’s transformation.
