Manchester’s rapid growth is the focus of this month’s Property Market Overview
Manchester’s property market is ever growing, with the population expected to reach 80,000 by 2024, the number of residential units delivered last year being +30% on 2017. Driving this construction is the unwavering Tenant demand; Manchester has the highest ratio of 24 – 37 year olds of any UK City. Dubbed ‘Generation X’ this demographic could live in rented accomodation their entire lives according to bakrate.com, with home ownership amongst this group down to 26% from 53% in 1984.
The North of England remains a much more attractive investment opportunity than London and the South of England. Investors in Manchester are enjoying one the highest yields in the country at 5.8% according to Cushman and Wakefield, as well as a 5.76% rental price growth vs. a drop of 1.12% in London.
Manchester is now seen as the regional centre for finance, commercial and retail and world class transport links. Major corporations the co-operative Group, Amazon, Royal Bank of Scotland, BBC and ITV have established major operations in the city in the last few years. Furthermore office take up in the city in 2018 reached a record breaking 1,750,287 sq ft; including Amazon taking over 90,000 sq ft, booking.com taking over 220,000 sq ft; a 45% increase from 2017 and significantly above the 5 year (1.383m sq ft) and 10 year averages (1.142m sq ft). It is expected 3,100 new jobs will be created per year across Manchester to 2034, with the city centre population anticipated to increase by 3,500 per year over the same period.
To put the housing demand into context, Colliers advise 4000 units will be delivered by 2022, whilst 11,000 jobs will be generated. Manchester is therefore under-supplied.
Demand has and continues to push the city centre borders; Ancoats in the north of the City was recently named one of the ‘hippest neighbourhoods in the world’ by Timeout magazine and January saw further investment in the area with new restaurants Mana and Counter House whilst Social housing provider Great Places and developer Manchester Life have announced a partnership to identify sites for affordable homes and a create a 10-year residential masterplan for East Manchester.
Perhaps the most exciting area of development however is the Civic Quarter in Old Trafford. With the Kinetic scheme sitting central to the new framework on Talbot Road and opposite the UA92 academy, residents will also benefit from an improved traffic framework including running and cycle tracks, an area of public realm larger than the popular city centre Albert Square site and improved Metrolink connections.
Last year Deloitte’s named Manchester as one of europe’s fastest growing places. As summarised by Estate Partner Simon Bedford ‘Manchester is now in a different league, genuinely competing with other European and International cities’.
For more information on property in Ancoats, visit our POPworks project page.
The Greater Manchester Combined Authority has announced that its long-term plan, Places for Everyone, has moved into its next phase. Insider Media.
Rightmove published its July House Price Index report, Rightmove.