Overseas buyers, as well as domestic buyers, are showing an interest in the property market in Manchester, and that is putting it on a level that is rivalling London.
Currently, Manchester has the best performing property market beyond London, with rental yields reaching a high 6.02%. As a result of this, Chinese buyers are showing a real interest in the Manchester property market as opposed to the London market.
The economy in Manchester has improved at an incredible rate since the IRA blast in 1996, which tore the city apart. The economy has doubled, the population has grown and employment is on the rise; and this will all be reflected in the residential market as demand will continue to be higher than supply.
Manchester is also attracting a lot of visitors from the middle East, with visitor numbers increasing by 33% between 2011 and 2015. Visitors from the Middle East have brought in £18 million for the economy in Manchester, highlighting just how much it is growing and how holidaymakers are considering it to be a destination worth visiting.
More than 8,000 jobs have been created over the past four years as a result of the Northern Powerhouse vision, with the aim of creating another 850,000 jobs by 2050. The infrastructure will be improved by the current government, sticking to plans put in place by the previous chancellors plans. Therefore, the city is seen as a safe bet when it comes to investing in property for both domestic buyers and overseas buyers.
As a result of the Brexit decision, the value of the pound has slumped but this has resulted in an increase in interest in property from Chinese buyers. Interest in London property investments has decreased because of weak returns, but also the fact that property prices are decreasing outside of the capital, with Manchester offering superb investment opportunities.
The increase in property values in Manchester is boosting interest and with the Northern Powerhouse continuing to develop, the future looks bright for the city over the next five years. Population will increase, employment will rise and so the residential mark will see demand increase, and this means that rental yields are expected to remain over 6%.
It seems as though the North is developing beyond Manchester as Leeds is another city that is experiencing strong returns when it comes to property. Demand in Manchester is going to remain strong, but Leeds will also come into the frame as the government looks to continue its implementation of Phase Two of High Speed Two (HS2).
The project is one of the biggest regeneration projects within Europe and this opens the door for further investment. What also works in favour for Leeds is that it also has a thriving student population as it has four universities, making it the fourth largest student population in the UK. This means that there is a high demand for rental properties and so, landlords can expect to see a yield of more than 6% within the city centre.