The UK property market is set for an excellent 2016, with Manchester’s ‘Northern Powerhouse’ tag leaving investors queuing up to get involved, says Innovo Property.
London-based property investment specialists, Innovo Property, have predicted that Manchester will be the city to look out for in the coming year, as new studies have revealed the region will continue to grow.
According to new research, investors are looking to move away from the Hong Kong real estate market and are acquiring assets in place is such as Dubai and Manchester. In fact, studies by online estate agents HouseSimple have revealed that the UK’s second city ranks first among locations where property prices are likely to boom.
The average property price in Britain is expected to rise £60,000 by 2020, according to CEBR (Centre for Economics and Business Research), meaning that investors could see a potential return of 19.5%.
In Manchester’s case, it achieved one of the UK’s highest yields and one of the fastest growing populations, as the city is on the verge of a new growth cycle.
2015 was a year in which Manchester firmly established itself as a property investment hotspot. It was named by HSBC as the UK’s number one city for yields, with rental rates being driven by one of the lowest levels of housing supply and a population growing at three times the national average.
It’s no surprise that Manchester has come out on top thanks to the city’s rejuvenation, with the expansion of the MetroLink system, the trendy Northern Quarter and BBC’s Media City all playing important roles.
Not to mention that the city leads the way in world-class higher education institutions, as well as plenty of job-creating developments such as The Sharp Project, Noma, Media City, First Street, CityLabs plus many more.
Manchester City Council Chief Executive, Sir Howard Bernstein, speaking in the Online Ventures Group produced report, Manchester Business Predictions 2016/17, had this to say on the matter:
“Between now and 2017, our city centre is seeing more than £1 billion invested in new projects to ‘future proof’ our transport infrastructure under the banner Grow. It’s a once-in-a-generation investment, on a scale which we haven’t seen since the aftermath of the 1996 IRA bomb.
“Schemes include the Metrolink Second City Crossing and the Northern Hub project which will enable hundreds more trains and millions more passengers to come through Manchester every year.”
With the population of the city predicted to increase by another 50,000 over the next six years this could attract some 40,000 new jobs, with an anticipated £5.5 billion to the national economy.
It’s this co-ordinated package that will deliver significant long-term benefits and keep the city moving, establishing itself as the Northern Powerhouse and the UK’s true second city after London.
The Top Ten Hot Spots for Property Prices
- Harborne, Birmingham
- Hythe, Kent
- Ilkley, Bradford
- Woking, Surrey