It’s no secret that property is still one of the safest investments out there. It has been the only asset class to perform consistently time and time again. Certain property locations in the UK tend to perform better than others over time. However it’s not uncommon to see investors allocating huge amounts of capital towards property, and are largely clueless regarding the area they’re buying in!
At Parata Property we’ve crunched the numbers for you and there’s one location that sits around the top of the pile time and time again. Here’s 3 reasons why you should invest in Manchester!
1. Booming Manchester Property Market
Alright, so the cat is out of the bag - Manchester is booming! Driven largely by the need for affordable housing as well as overseas investment, this northern metropolis has seen incredible growth over the past 5 years. Don’t take our word for it, here are some numbers:
- Capital appreciation in Manchester saw a 12.12% growth from January 2020 to January 2021 alone. As per the UK House Price Index, that’s roughly 12 times greater than London and two times the national average of 7.49%.
- Property market forecasts state that a 28% growth is likely on the cards for the North West by 2025.
- The inner city borough of Salford, alone has seen jaw-dropping growth of 47.6% over the past 5 years. This is 24% above the national average
2. Affordable properties
Property prices in Manchester are more affordable than in other areas of the United Kingdom, especially London. As per a Land Registry House Price Index report, the average house prices in Manchester is £203,835. As a comparison, London’s average of £525,893 is more than twice that figure.
First time home owners are likely to get more bang for their buck in Manchester, and with strong rental demand, savvy investors seeking to build profitable property portfolios are moving their money to the Manchester property market in droves.
3. London and the HS2
It’s no secret that London isn't cheap. According to a study conducted by Loughborough University, the same standard of living costs 58% more compared to the rest of the UK. With lower operational costs, businesses such as the media-giants, the BBC moved to Manchester in 2011. A host of international giants such as Google, ITV, Mediacom and IBM have also followed suit.
The long awaited high speed railway which aims at connecting the UK’s major cities will further increase northern migration. Upon completion of the HS2, the 2 hour and 24 minute transit from Manchester Piccadilly to London Euston will take just over an hour. Businesses and commuters alike will take advantage of Manchester's lower costs, which will further drive up property prices and boost economic growth in the UK’s second city
