Manchester is becoming a property hotspot after average prices have soared in the last five years according to a leading property management firm. Apropos by DJ Alexander has analysed the latest average house prices and found that prices in Manchester rose by 44.7% over the last five years compared to a UK average of 23.7%; an England average of 25.3%; and a rise of 22.4% for the North West as a whole.
Manchester has seen average property prices rise by 5.2% over the last year against a one-year rise of 1.2% in the UK; 0.9% in England; and 3.4% in the North West. The city of Manchester has had the greatest population growth outside London and the Greater Manchester area is predicted to increase by 2031 to 2.95m from 2.68m.
David Alexander, joint managing director of Apropos by DJ Alexander Ltd, explained: “Manchester has long been a fashionable and attractive city attracting many thousands of people drawn to its night life, job prospects, and lifestyle. It is one of the most dynamic cities in the UK and the increase in population, which is predicted to continue for the next 12 years, means that demand for housing will continue to remain high.”
“However, the city has had a growing gap between mortgage affordability and earnings with those on median incomes experiencing a ratio of earnings to median house prices of 5.74 in 2018 which is the highest ever figure, with the second highest figure in 2017 and the previous peaks occurring in 2006. This means that there are a growing number of well-paid individuals who want to live in the city but cannot immediately access a mortgage and are therefore keen to live in the private rented sector (PRS).”
David continued: “For individuals and investors, Manchester, offers a potentially great return on their home or their investment. It is clear that social housing will not fill the property gap which is occurring in Manchester so it will be the PRS which fulfils renters needs for many years to come.”
“For those considering investing in Manchester we are always keen to work with individuals and corporate investors who want to develop quality properties in the PRS and see investment as a long-term prospect. Some people have ‘got rich quick’ in the property sector in the past but many have just as quickly fallen back due to poor property and rental management. I would always encourage landlords to aim for the best quality, in the best areas, to ensure the greatest returns over a reasonable period.”
David concluded: “For individual homeowners and for long term investors Manchester is a strong prospect at the moment and is definitely worth examination for someone interested in buying in an area where prices are likely to rise at a reasonable rate. There is little doubt that values will increase as the population grows and some cities simply have that kerb appeal which draws people to them, and I believe Manchester is one of those.”