Manchester a city of music and poetry, the capital of ‘cool’ in the UK, spawning counter culture, socialist politics and art on its wet and windy streets. From it’s milling roots, through to being a major UK shipping hub, Manchester has matured into an absolute powerhouse of commercial activity in the UK, fighting for second city status.
The ‘Northern Powerhouse’ government strategy to share industry outside of London, along with massive EU investment through the last 30 years played directly into Manchester’s hands. Some incredible local government leadership embraced opportunity quicker than any other city in the North of England driving the city forward in education, business and infrastructure.
The tram lines of Manchester have been used as an example of the ways cities should create usable transport links, and along with aggressive strategies of pulling major international companies to the city have allowed many property millionaires to be created out of this vibrant city.
Today the Manchester boasts the BBC, Google, Adidas, ITV, along with another twenty odd thousand business, employing some of the brightest minds in the UK.
We all wished we invested 10 years ago in Manchester, and those who invested 10 years ago wished they had invested 10 years before that. In 10 years time the same will happen.
While there is a significant increase in supply of property in Manchester the city is still significantly behind demand. Prices have been increasing year on year with Baron & Cabot exclusive reports showing key postcodes averaging 31% growth in apartment prices in the last 5 years, 6% in last year alone.
As investors, we have a habit of believing that the best has already been in cities and not harnessing that the best way to predict the future is the past. Property growth is exponential and the next 10 years will see huge profits for existing investors, and any new investors buying the right property.
Manchester has an undersupply of quality accommodation which the local government has classed as ‘critical’. Average salaries to average property prices are still below seven times, giving plenty of room for growth. There has never be a better time to invest in the city.
Look for growth areas unless you want to pay top end with slightly lower yields, look for easy access to transport and ideally a walk to any of the major business districts. Expect yields between 4% & 6%, and similar growth figures.