The focus of those looking at UK Property Investment: one of England’s rising stars, Manchester is undergoing huge economic growth and transformation, drawing young talents and businesses into its arms, and spurring an ever-increasing demand for housing in the city.
Manchester is one of the world’s top 10 cities for foreign direct investment, and its property market is seeing a surge of interest from investors in Asia and the Far East.
Its population is also on the rise, translating into further housing, economic, infrastructure growth and UK property investment. The city population is reaching 600,000, ranking as one of Europe’s fastest, according to the city council’s 2018 State of the City Report.
UK Property Investment Indicator: A Growing Young Working Population
Approximately 70,000 people now live in Manchester city centre. This city is the home of the UK’s young workforce with one of the highest proportions of young workers (18–34 year olds) in the country, a key demographic in the UK’s rental market.
An impressive 70% of Manchester graduates remain in the city and Greater Manchester after their studies. Additionally, 36% local youths who studied outside Manchester choose to come back to the city after graduating. This is a useful consideration for UK Property Investment as tertiary students are usually on the lookout for a place to live.
Many young professionals flock to Manchester because of the wide range of employment opportunities. Manchester has earned a reputation as the hotbed of tech and startup talent in the UK, drawing in young talent from across the country, with most if not all, looking for rental housing in the city. This generation is one that uses Spotify rather than buys CDs. It pays to use Uber, rather than deal with the hassle of driving their own cars. This shift in attitude towards ownership has now extended to the property market, with Manchester’s tenants preferring to rent high quality homes in the city centre, rather than a landed property in the outskirts.
Many multinationals and FTSE 100 companies now call Manchester home, which include the likes of Google, Etihad, Adidas, Siemens, and the BBC. 70% of the employment in the city is in the knowledge intensive industries, driving urban demand for housing.
ith a growing population of young working adults, UK Property Investment is likely to continue to be lucrative.
UK Property Investment Indicator: Continued Development
More than 200,000 new homes are expected to be built by 2037 in Manchester, to support demand. The city’s population is expected to rise to 644,100 by 2025.
Infrastructure upgrades are in place to support the growing population. Recently-announced plans include expanding the Metrolink on several fronts, new tramlines and a tram-train system where current trams are adapted to run on the same rail lines as trains.
The city’s vibrant talent pool, coupled with world-class transport links, has propelled Manchester to become one of the best cities in Europe to do business in. It is now seen as the regional centre for finance, commercial and retail.
Manchester as UK Property Investment Option
The average value of a property in Manchester has risen 17.1% since the Brexit referendum in 2016, outperforming the expectations of many. Compare that with the UK’s average property price growth at 8.9% and you can see why Manchester is called the UK’s Top Investment City.
By 2023, property values are projected to rise in Manchester by 21.6%, its growth predictions far surpassing the anticipated inflation rate. Manchester has seen significant investment into its development over the past decade, preparing it to rise to further heights, as more Britons opt to live here instead of the capital.
Aside from good capital growth, the rental yields in Manchester are predicted to go as high as 7%, promising consistent income. Meanwhile, the Pound has now dropped to RM5 : £1 — properties in the UK are on sale!
With the rapid upward growth and continued development for the foreseeable future, Manchester is a great option for property investors looking for the best returns.
Article by Ian Choong Edits by Vivienne Pal & Jagdeep Kaur
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- Feature image credit: University of Manchester