Manchester is a regeneration and redevelopment success story almost without parallel. A city with a proud industrial heritage that has undergone a renaissance and is emerging as a modern economic powerhouse for the 21st century.
The city really does have it all – for investors and residents alike. Manchester is home to a thriving food and drink culture, arguably the best live music and nightlife scene in the country, world class universities and two of the biggest football clubs. So it really is no surprise that The Economist ranked Manchester higher than London and Libson in its list of the most liveable cities.
Manchester’s regeneration has gone hand in hand with a period of economic transformation and rapid growth. 80 FTSE 100 companies already have offices in Manchester, and earlier this year the city was named the biggest tech hub outside of London.
Manchester’s enviable position as one of the fastest growing property markets in the UK – with house prices forecast to grow a further 20% in the next 5 years – is underpinned by the city’s position as one of the best places to live and work in the UK for young professionals and the place with the most job opportunities outside of London.
Last month Starling Bank became the latest big business to move into the city, joining the likes of Barclays, Google, Kelloggs, BNY Mellon, and so many other major employers who now call Manchester home. With the city’s vibrant job market attracting the brightest talent, demand for housing is increasing – particularly in the city centre.
Earlier this year Aldermore named Manchester the best place to invest in property in the UK and it’s easy to see why. Strong long-term property price growth (an annual average of 5.6%) combined with solid tenant demand (31% of residents are renting privately) mean that the city is full of some of the best investment opportunities available anywhere in the country.
In 2022 availability of rental properties in the city fell to an all-time low and a chronic imbalance between demand and supply saw rents soar by 22% in a year, growing faster than anywhere outside London according to research from JLL.
In more good news for investors, Cushman and Wakefield reported that average yields are increasing – up to 4% at the end of 2022 – and in some Manchester property hotspots we’re seeing yields well over 5%.
With HS2 set to halve journey times to London and the city’s next regeneration plan focused on delivering 8.7 million square feet of additional commercial space and 45,000 new jobs, Manchester’s growth is only going from strength to strength. Yet more evidence that now is the perfect time to invest in Manchester and share in the success of the city’s regeneration story.
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