While there have been some challenges across the UK housing market, the sector has remained remarkably resilient. Inflation has been running high, leading to higher mortgage rates, tightening household budgets and weaker overall sentiment within the property market. However, city centre markets like Manchester are proving to be particularly resilient.
Manchester is seeing some of the most growth across the UK as an economic powerhouse and thriving city with a strong property market, according to JLL’s Big Six Residential Development Report.
This report compares activity, rents and prices across six of the UK’s biggest cities outside of London, including Manchester, Birmingham, Edinburgh, Bristol, Leeds and Glasgow. So, let’s take a look at how the city of Manchester matches up to the other major cities across the UK.
Economic powerhouse
For starters, Manchester recorded the highest GVA growth across the Big Six cities over the last 10 years as the Northern Powerhouse economy grew by 32%. And over the next decade, Manchester is forecast to have the second strongest GVA growth of 23%, only being beaten out by Bristol by 1%.
Population growth
Throughout the past 10 years, Manchester has had nearly 10% growth in population. This is above the average for the Big Six cities, which sits at 8.7%, and it also surpasses the UK population growth by some distance, which totalled 6.3%, over the same period.
Manchester is also home to a high proportion of young professionals with almost 30% of the population being between 25 and 40 years old. Young residents flocking here and to other cities across the UK are often being tempted by convenience.
Thriving property market
With a thriving and resilient property market, Manchester has had the second largest average annual house price growth of 4.9%. This means homebuyers and property investors are continuing to earn capital appreciation on their properties.
Housing demand has been high across the city as the population has increased. But at the same time, Manchester has recorded the most significant drop in rental stock entering the market.
Rental listings are down 24% in the city. Issues of a stock shortage are being exacerbated by a rise in renewals. This is being driven by a more competitive rental market and higher mortgage rates deterring prospective first-time buyers.
Additionally, Manchester is experiencing the highest annual rental growth out of the Big Six Cities with a 19.6% increase in the year to June 2023. Over the last 12 months, there have been several new schemes completed in the city.
The improvement in the quality of these developments, alongside increasing demand from prospective tenants, has contributed to the rise in rents. There has also been a 25% increase in annual rental growth for prime properties.
Room for growth
In the latest JLL Buyers and Tenants Survey, the results revealed residents are prioritising the neighbourhood in which they live. There is a growing appetite for properties, including flats and apartments, in central locations close to key amenities, such as public transport, leisure facilities, shops, restaurants and pubs.
As Manchester’s population and housing demand continues to increase, there is a need for the development of more high-quality city centre properties. With the city being slated for more growth, this may entice more property investors to the area as well.
At the same time, the UK government has committed to building one million new homes over the course of this parliament session. They are prioritising building on brownfield sites in inner-city areas where demand is highest and key infrastructure already exists.
This will be welcome news particularly in Manchester due to the need for more housing. While the city has undergone momentous regeneration over the past couple of decades, there is still more construction and development needed, which will bring forward additional residential, retail, leisure and commercial developments.
With so much growth still to come, the future looks bright for the exciting and thriving city of Manchester.
At Salboy, we have a range of new-build and off-plan properties available across Manchester. If you’re interested in buying or investing within this growing city, please get in touch with our team of local expert advisors.
