Manchester house prices have risen by a higher percentage than anywhere else in the UK over the past two decades, and it’s not the only northern city with dramatic growth.
It’s widely recognised that UK house prices have just kept climbing over the past few decades, overcoming financial crises, recessions and other economical and political turmoil along the way. However, a new index has pointed to the cities that have fared particularly well through it all.
Plumbnation has analysed Office for National Statistics figures over the past 20 years – from 2002 to today – and ranked the fastest-growing cities. Its research also split the findings between different property types, from flats to detached houses.
The rankings revealed that the north-western city of Manchester had seen the greatest level of capital appreciation over the time period. Manchester house prices have climbed from just £48,845 in 2002, to £210,647 today, which is a huge percentage increase of 331.26%.
Northern cities lead the way
When people think of steep house price increases, London is normally the first city that springs to mind. But while the capital is certainly home to the heftiest price tags, and has made healthy returns historically for investors, cities in the north have seen the biggest percentage increases.
Sitting within Greater Manchester is the city of Salford, and this ranked in second position on Plumbnation’s list. Salford prices grew by 289.68% over the 20-year period, from £50,567 to £197,047 today.
Like Manchester itself, Salford has benefited from huge levels of investment and regeneration in recent years, which has resulted in a surge in popularity and house prices. Companies and inhabitants continue to be drawn to the area and regeneration projects are ongoing.
Other northern cities in the top 10 include Kingston Upon Hull, where prices have gone up by 241.21%, Sheffield (up by 233.97%), Liverpool (up by 233.94%), Burnley (up by 233.12%) and Doncaster (up by 223.25%).
Homeowners and property investors who took a punt on these locations at the start of the millennium will have therefore seen huge capital appreciation on their properties, and many house price forecasts predict that this trend will continue.
Which property type?
Even when separating the data by different property types, Manchester house prices have seen the greatest gains over the past two decades.
Manchester’s skyline has undoubtedly changed over the years, with thousands more flats becoming available to cater for the growing number of city-dwellers, including young professionals and students. Property investors often target flats in the city for this reason.
The cost of a flat or maisonette in the city has increased by 258.85% since 2002, according to the figures. While you could secure a flat for just £49,943 2o years ago, it costs an average of £179,220 now.
Terraced properties have also done particularly well when analysing Manchester house prices. They have increased in value by 377.02%, from £41,533 to £198,122 today.
Interestingly, while London ranks in 24th position overall in the list – with a 200.34% overall increase from £169,841 to £510,102 – it had a much greater percentage increase when looking specifically at flats. On this score, it was in 6th position with a 178.25% increase (£153,883 to £428,181).
Manchester house prices rising with rental yields
Along with climbing house prices, property investors have been benefiting from some of the healthiest yields in the country in recent years.
A buy-to-let rental barometer released by Fleet Mortgages last month showed that the north of England as a whole was leading the way for rental yields. It highlighted the cities of Manchester, Liverpool and Sheffield as having the best performance, amid a surge in tenant demand.
Rental prices in the north west have also risen more than in any other region between February and March 2022. Rents have climbed by 6.36% in the region, so the average tenant is now paying £819.84 per month, compared with £770.82 in February, according to Goodlord.
Therefore, while Manchester house prices have already seen an explosion over the past 20 years, there are still plenty of signs to indicate that it remains a good investment prospect for buyers.
BuyAssociation is a Manchester-based property investment company that works with developers and investors across the country. Get in touch today to find your next UK property investment.
