EVERYONE loves London and wants to live in London. That’s understandable: after all, London is one of the world’s most historical cities and the capital of the world’s greatest empires of all time. It is also a cultural epicentre and one of the most exciting places in the world.
But #DidYouKnow that Manchester has been named by the Economic Intelligence Unit (EIU) as the best UK city to live in – surpassing London – for the second year running?
Manchester has now become the UK’s powerhouse city – its fastest-growing to date, and the largest economic area outside of London with £56 billion gross value added (GVA) whilst London’s annual residential rent growth slows down with property prices hitting an affordability ceiling.
We are firm believers that the time has come to invest in Manchester. And here’s why:
3 REASONS TO INVEST IN MANCHESTER
1. Higher rental returns than London
With its population rising at three times the pace of the national average and exceptional transport links, Manchester is now the UK’s number one city for property investment. Average rental yields are 2.78% higher than the highest yielding London borough of Newham thanks to sustained demand for rental accommodation and one of the lowest levels of housing stock in the country.
According to Savills’ Matt Oakley, Manchester has the highest number of graduate retentions of any city in the UK. In 2014, Knight Frank’s Rental Revolution report states that rental return growth in Manchester increased by 5.27% – 13 times faster than yields in London.
Manchester has experienced capital growth of 21% in the last 18 months, with growing population and shrinking property supply forecast to drive property prices up by 22.2% over the next 3 years.
2. Government investments amounting to billions of pounds
The UK government plans to build an economic powerhouse in the north of England, with the creation of enterprise zones with favourable tax conditions and devolved local government powers designed to encourage investment.
To date, a £1 billion expansion of Manchester’s airport has been announced, which will drive an additional 10 million passengers annually, while connecting Manchester to more destinations around the world. Meanwhile, the construction of the HS2, the high-speed rail, will cut the journey time from Manchester to London to only one hour
3. Strong demand for short-term rental
The relocation of the BBC, ITV and Co-Op Bank headquarters to Manchester and the growth of NOMA reaffirm Manchester’s economic growth in the UK. As more corporations move their headquarters to Manchester, there will be positive job growth in the region, thus leading to a greater requirement for both long term and short term housing.
Manchester clocked the highest demand for property and accommodation with a short-term rental in the UK in June 2015. About 43% of letting agents reported a significant increase in interest among prospective tenants in the region.
Manchester records about 10.3 million staying visits each year, with occupancy levels at hotels in the city hitting record levels in May 2015. This demand for short term accommodation has placed a strain on the already limited number of hotels and apartments in the city, particularly as more traveling business executives look for such accommodation types as the city continues to expand economically.
If you are looking for a viable investment in the UK, it’s time to start looking to Manchester. This city, with its huge student population and growing workforce, is definitely the place to plonk your pounds and pennies.
Call us at 03-2162 2260 or 016-228 8691 or 016-228 9150 for a chat. Our advice is free but valuable.
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CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence.
Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.
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