In the past couple of years, Manchester has become a hotspot for property price rises and investment, largely because of the rise in commercial activity in the area. With the BBC moving much of its operation to the city, and other media companies following suit, it has given Manchester a new edge, a surge in demand and a new type of resident, which has allowed both prices and rents to climb impressively.
And according to new predictions from JLL, this is not a trend that has finished yet, with the continued trendier buzz in Manchester set to keep demand high, pushing prices and rents up across the next four years.
For those seeking attractive capital growth, the price of their investments will be likely to climb by 26 per cent between 2015 and 2019. JLL said that the average two-bedroom apartment in Manchester will grow in price from £280,000 to £354,000 during this period.
Across the same period, the company said that rental prices will increase even more impressively. Currently sitting at an average of £975 per calendar month, the price of renting a property in Manchester city centre is expected to go up by nine per cent in the next year.
And by the end of 2019, JLL predicts that the price of rent in the area will have grown by 26.3 per cent, marginally outpacing the growth in price over the next four years.
Stephen Hogg, lead director of residential at JLL in Manchester, said: “The market in Manchester is indicative of its position as the second city and, along with Birmingham, is seeing flocks of new occupiers who have been priced out of London looking for homes.”
The increase in rent in particular comes from a lack of supply of new homes as people come to Manchester in their droves, so those who invest in the buy-to-let sector are best placed to capitalise on strong demand, knowing that they will be able to achieve strong yields without the worry of long void periods.
Investment options such as those at Princes Street in Manchester offer investors the chance to often buy properties at lower than market value with a low contact venture. Property management means they do not need to take a hands on approach, and they are guaranteed returns of 7.5 per cent on their investment across the first three years.