Manchester property prices rose over 30% in 2015
Investors across Greater Manchester netted significant capital gains as the region established itself as a UK property hotspot.
- Property prices in Greater Manchester soared last year
- Investors in Salford and Manchester achieved the highest gains in the region
- Manchester has the UK’s highest yields and one of the fastest growing populations – but it’s a city just on the verge of a new growth cycle
Property investors in Manchester made significant gains on their assets in 2015.
Addresses across the Greater Manchester region registered notable uplifts in values between November 2014 and December 2015, new research from Which? Mortgage Advisors shows.
By analysing Land Registry data, the report found that real estate in Salford’s M5 postcode recorded the region’s highest rises, with the average value of £127,890 representing growth of 34% in just 12 months.
These gains were followed closely by those with property in Manchester’s M12 postcode, where the average price grew by 32% to £98,000 in November 2015 from just £74,000 one year previous.
2015 was a year in which Manchester firmly established itself as a property investment hotspot. It was named by HSBC as the UK’s number one city for yields, with rental rates being driven by one of the lowest levels of housing supply and a population growing at three times the national average.
But at a time when the cost of investing in London real estate is eating away at overall returns, it’s the prospect of future growth that’s exciting investors the most with Manchester, triggering a drive to acquire assets now for the best long-term gains.
Manchester has one of Britain’s youngest populations, with 60% more 25 to 29-year-olds living in the north-west city than the UK average. With the emergence of Generation Y has come the growing demand for rental property for a demographic that no longer equates homeownership with success.
City targets outline a need for 4,000 new build-to-rent properties each year to keep up with this demand, but less than 1,500 are being built or are in the pipeline. With a 58% graduate retention rate and hundreds and thousands of new jobs expected to be created over the next few years as a result of the city’s role in the Northern Powerhouse, Manchester is a city that boasts some of the UK’s most exciting investment opportunities right now.