When it comes to choosing a location to invest in as a property investor, it must tick all of the boxes and then some to be worthy of your hard-earned capital.
But beyond the usual suspects of healthy yields and an upward projected growth, it’s essential that the location is also a place that people want to live and work in. After all, this is what your tenants and ultimately the person who purchases your property in the long term will be considering themselves, so it pays to get this one fundamental aspect right from the off.
As the beating heart of the Northern Powerhouse, Manchester is a UK city that has a lot to shout about. Some may regard Manchester as a hotspot for students or as a legendary birthplace to many a famous musician, or even for its sporting action with two premier league football clubs on its patch. Manchester even has its own international airport, acting as a regional hub for major airlines including the likes of American Airlines, British Airways, Delta, EasyJet, Emirates, Etihad and Qatar.
However, Manchester is also a source of untapped potential in terms of its property market too. Dialling down on the zeros needed for a property of the same size and specification further south – especially one in a prime city centre location – Manchester is turning heads for property investors new and old in 2022 and for good reason.
Here’s what property investors need to know about Manchester for the year ahead and beyond to uncover why the city is worth your attention.
- The metro area of Manchester has a population of 2,770,000 (an increase of 0.73% from 2021).
- Manchester has an average property price of £249,540 which is £528,480 less than London at £778,020 (Feb 2022), making the northern city far more attainable for investors and renters alike.
- Manchester has an expected price growth of 3.5% by 2023, exceeding the expected UK average of 3% (Northern England forecast).
- Manchester is home to over 100,000 students who come to study at one of the city’s five universities, with a graduation retention rate of 51%, making it the second most popular city in the UK for graduates.
- Key employment sectors in Manchester include Retail, wholesale, distribution, construction, hospitality, sport and tourism.
- HS2 will connect Manchester to Birmingham in just 67 minutes, and the station terminus is located within a short walk of our Ancoats Gardens Manchester development.
Read more: Why Now Is The Time To Invest In Manchester
Manchester Property Trends For 2022
For anyone considering making the move to Manchester or investing in the Manchester property market as a whole, the city is off to a strong start for 2022.
Research by Savills found that the North West is expected to have the largest percentile value growth both in 2022 (4.5%) and over the next five years (£272,732). This puts the area well above not only London but the UK average as a whole.
As mentioned, the cost of property in Manchester is far more attainable compared with London and the wide South East. Yet, its projected growth yields far exceed these areas. This means that for investors coming to the table in 2022, the Manchester property market makes it easier to get a foot in the door without having to compromise on projected growth.
Rightmove has also reported a 10% increase in sold prices in Manchester over the last year, with a 21% increase since 2019. Let’s not forget these record results are also despite a global pandemic, an unprecedented event in which the housing market remained incredibly resilient against the backdrop of so much uncertainty.
The fact that the Manchester housing market has scooped the top spot for ultimate growth compared with any other area of the UK is extremely promising. Continued investment into the city shows no sign of slowing down either, with research showing Manchester had a 31% rise in the amount of newly secured office space totalling 1m sq ft in 2021 alone.
Given remote working and hybrid working will remain a trend, this gives tenants even more incentive to search for a place to live that allows them to be close to the office yet with the luxuries and commodities that allow them to not only work from home, but are also reflective of soaring rent prices. Compared with the cramped dwellings synonymous with the London rental market, the developments we are personally involved in here at Thirlmere Deacon offer tenants the rare formula of a property that has been completed to excellent standard yet is located in a prime location of the city.
We encourage all interested investors to explore our Manchester investment properties and register their interest at their earliest convenience. If you’d like any further advice on anything we’ve mentioned above, or if you are considering investing in one of our opportunities, please send us a message or call us on +44 (0) 2039507939.