Manchester is a city experiencing immense growth, ambitious regeneration and an increasing student body. Such prosperity has made the city one of the leaders in UK property investment. Forming part of the Northern Powerhouse initiative, the city has become one of the biggest success stories of modern Britain. New research highlights that Manchester is surpassing every other city across the UK when it comes to property prices, and the levels of capital appreciation and potential to secure robust returns are unmatched across the country.
In terms of returns, Manchester’s capital appreciation grew by 7.4% over the last year compared to the national average of 4.6%. To put this into perspective, over the same 12-month period London’s capital appreciation grew by 0.7%, the smallest growth across the whole of the country. Liverpool and Birmingham closely follow, taking second and third place respectively in the latest property prices index figures. The figures of 7.2% and 6.8% further highlight that the North of England is a major player in the UK property landscape. As a result, it is clear to see how Manchester has come to be recognised as the UK’s ‘second city’.
During the first six months of 2018, residential properties for sale across Manchester grew by a staggering 56%. House prices across Manchester are expected to grow by a further 6.5% over the next three years, far exceeding the national average of 3%. Predicted growth across the city makes investment an appealing prospect for buy to let landlords seeking lucrative opportunities.
One of the biggest success stories in Manchester’s property market is purpose-built student accommodation (PBSA). Since 2013, the city has nurtured a 20% increase in the sheer number of students from overseas attending Manchester’s world class universities, leading supply failing to meet demands in student housing.
Manchester currently has nearly 24,000 bed spaces, but more are required to meet the numbers that are attracted to Manchester’s strong educational and cultural presence. Supply and demand has a positive effect on the soaring prices across the city. In 2017, the price of en suite student bedrooms rose by 3%. As the current 21st century student is no longer prepared to live in squalor that many are used to from previous years, the standard for luxury student accommodation has been set much higher than ever before. Students from all walks of life are actively seeking accommodation from property investment companies like RW Invest that offer a high quality standard of living.
Reliable and consistent streams of student numbers, impressive student retention as well as a blooming number of graduates and young professionals and a thriving population in the city centre have led to an increased demand for luxury living. Such growth and demand is helping to shape Manchester’s property market into the most prosperous it has been yet. Economic and regenerative growth across the city looks set to continue as Manchester’s economy is flourishing. It is flourishing not only from investments from those from the UK, but also due to the influx of direct foreign investment that is helping to bolster the local economy.