Manchester’s housing market continues to thrive, and the growing economy and increasing population is further elevating the city’s property market, and especially the rental sector. The Northern Powerhouse even leads the UK’s major cities in a variety of these areas.
Here we’ll cover JLL’s Big Six Residential Development Report and UK Residential Forecasts Q4 2022 and what this means for Manchester’s housing market and economy.
Thriving housing market
In the coming years, Manchester is expected to be one of the strongest housing markets in the UK in terms of house price growth. Demand is significantly outstripping supply, and this will likely continue. Between 2023 and 2027, sales price growth is projected to increase by 19.3% in Manchester.
The thriving northern city is also expected to have the strongest rental value growth over the next five years with a 21.6% rise forecast. This is being projected as a growing number of young professionals are continuing to be attracted to live and work in the city, which has significantly boosted rental market activity.
Moving forward, energy efficient new-build properties in the city centre are expected to be particularly popular among renters looking to minimise their energy bills. This will boost demand for new urban rental properties and underpin even stronger rental price growth.
Manchester also boasts the second-largest operational build-to-rent market nationally. There are 8,900 completed homes across around 30 different schemes, and many more exciting developments are on the way. This is helping keep up with the continuously increasing demand.
Economic powerhouse
As one of the fastest growing economies, Manchester is the quickest growing city of the Big Six report. There has been 34% growth recorded in the city alone over the last decade.
The Manchester International Airport is the busiest airport outside of London. This is complemented by strong rail connections to many major cities across the UK. On top of that, more than £1.5bn has been spent on developing and expanding the tram network in Manchester since 2010.
The city has also experienced the largest employment growth over the past 10 years. Manchester continues to attract new and expanding companies, in addition to young professionals, to the city. And this trend will likely remain as additional investment and development keeps coming to Manchester.
Growing population
Additionally, Manchester has had the largest population growth over the past decade among the Big Six cities. That includes Birmingham, Leeds, Edinburgh, Glasgow and Bristol.
A large population of young people have been moving to this city in the north west. Greater Manchester as a whole was home to more 25 to 29-year-olds than any other city in the UK in 2020, according to figures from ONS.
With the city’s constantly improving liveability, Manchester is expected to keep growing in population. Previous estimates by the city council have forecast the city’s population will surpass 635,000 by 2025.
Manchester’s population growth and liveability will continue to boost the city’s housing market in the years to come. More exciting residential developments are also helping keep up with the ever-increasing demand across the city.
At Salboy, we have a range of new-build and off-plan properties available in Manchester. If you’re interested in buying a property in this thriving city, please get in touch with our local team of advisors.
