Investing in a brand-new property can safeguard your assets for the future, and the Manchester new-build scene has been marked out as the most active in the country.
Property investors and homebuyers looking to purchase a Manchester new-build will find the highest level of property stock in the UK, according to a new report from Money.co.uk.
The north west city saw the greatest number of new-build completions between 2020 and 2021, with 3,130 private properties built in the time period. With housing demand in the city remaining extremely high, this has increased the options for many buyers.
It is also an indication of the strength of the city’s economy, with multiple regeneration projects and new developments taking place across Manchester, and the housing market striving to keep up.
The average Manchester new-build property costs £281,869, according to the report, compared with the average price of £214,612 for an existing home. Despite the price premium, brand-new properties have recently been labelled as a safer investment option during turbulent times.
Why invest in a Manchester new-build?
Manchester is reported to have around a 50:50 ratio of rental properties compared with homeowner occupied homes. Thanks to its top universities, excellent job and career prospects and thriving cultural scene – alongside its relative affordability compared with many parts of the UK – the city is a major draw for private renters.
There is, however, a lack of rental supply in Manchester at the moment, meaning landlords with homes available are seeing huge levels of interest from tenants. In turn, this has pushed rents up, with UrbanBubble recently reporting that rental prices have risen by an average 20% in the past year.
What’s more, Manchester’s population is predicted to increase by around 30,000 people over the next six years; making the Manchester new-build market even more crucial to creating enough housing stock for incoming households, in both the private rented sector and for homeowners.
Many of the Manchester new-build property opportunities available come with the option to invest off-plan, during the planning or construction phase. This not only allows more flexibility in terms of which plot or unit you invest in, but can also save a significant sum of money compared with a completed property.
New-builds are also increasingly sought after due to their lower running costs – including energy bills – and fewer maintenance costs and issues. Tenants are increasingly keen to know about a property’s EPC so they can estimate their bills, so this is a huge selling point for landlords.
Other notable new-build trends
Money.co.uk’s report revealed that Tower Hamlets in London and Leeds came in second and third position in terms of the number of completed new properties between 2020 and 2021, with 2,680 and 2,590 respectively.
In Tower Hamlets, brand-new properties were some of the most expensive in the country, at £535,795 on average. Meanwhile, new-builds in Leeds came in at £333,960, which is £112,502 more expensive than existing homes in the area – a significant premium.
The report also listed its top three areas to invest in a new-build, which factored in things like the number of new-builds per 100,000 residents, average prices, the percentage change between existing and new homes, and the average personal wellbeing score.
Top of this list was West Devon, which scored 9.27/10 and was one of the only areas where it was possible to secure a brand-new property for cheaper than the average older home.
Eden in Cumbria was in second position, with a score of 9.24 out of 10, followed by West Oxfordshire, containing the Cotswolds Area of Outstanding National Beauty, which scored 8.99 out of 10.