Posts with tag: Manchester

Surge in demand for Manchester buy-to-let properties, says Fabrik Invest

Published On: August 13, 2021 at 8:59 am

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Manchester buy-to-let properties

Property investment company Fabrik Invest has reported a surge in demand for buy-to-let property in Manchester over the past three months.

During that time, 70% of the company’s sales were made in the city.

Dale Anderson, Managing Director of Fabrik Invest, comments: “We’ve sold around £8 million worth of property in Manchester in the past quarter and demand continues to be strong. Manchester is ticking all of investors’ boxes right now, whether they’re domestic investors or those putting their money into UK property from overseas.”

According to Zoopla’s June 2021 UK House Price Index, Manchester has enjoyed the third highest price rises in the UK over the past year, with an average increase in value of 7.4%. Savills, meanwhile, is forecasting a 28.8% rise in property prices across the North West over the five years to 2025.

Manchester also stood out as a city with property investment potential in Aldermore’s 2020 Buy-to-Let City Tracker. It ranked the city as the best location in the UK for landlords to invest in, with rankings based on factors such as average rent prices and local void period levels.

According to data from the Office for National Statistics (ONS), labour productivity in the North West grew by 4.6% in 2020 (compared to 2019). This is the fastest rate of growth in the UK and well above the national average of 0.4%. Manchester is also the UK’s third best performing city when it comes to attracting foreign direct investment (FDI).

Matt Harper-Penman, Group Director of Fabrik Invest, comments: “Manchester is a leading light when it comes to property investment right now. With so much going for it, including strong demand for rental homes and a relatively low entry point – the average property there costs £188,900, compared with £488,600 in London – the city has enduring appeal for investors.”

Manchester rent controls will choke off housing supply says RLA

Published On: October 7, 2019 at 9:06 am

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rent control

Plans to introduce rent controls in Manchester are currently being discussed. However, the Residential Landlords Association is warning that this will choke off the supply of homes to rent and make it more difficult for tenants to find a place to live.

A new report has been jointly published by The Royal Society for the encouragement of Arts, Manufactures and Commerce and One Manchester. It argues that the Government should grant powers for the Combined Authority to establish rent pressure zones to control high rents.

The RLA has pointed out that all available evidence shows rent controls lead to a reduction in the supply of homes available for rent. This has restricted choice for tenants, led to lower quality housing and, in some places, an increase in homelessness.

In London, where a similar proposal is being made by the Mayor of London, the Centre for Cities has warned that strict rent controls would divide the city’s renters into “winners and losers.”

The association also bring to our attention that there was a recent article on rent controls in San Francisco in ‘The Times’. It warned that they have made the problem of homelessness worse, “because they discourage people from letting out property and thus reduce supply, pushing house prices up further.”

John Stewart, Policy Manager for the Residential Landlords Association, said: “Rent controls are on the face of it an attractive but simplistic and populist approach to the increased cost of housing. In reality, they make the situation for tenants worse.

“All the evidence from around the world where they have been introduced shows that they reduce supply and drive up the cost of housing.

“Having controls on rent is not much help to a person who cannot find somewhere to live because of the cut in the number of properties available.

“Instead, the Mayor of Greater Manchester needs to work with the private rented sector on how to boost the supply of homes for rent to meet ever growing demand.”

Property Investment is Booming in Manchester – the Next Silicon Valley

Published On: September 28, 2017 at 8:03 am

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Property investment is booming in Manchester, as ever more businesses move into the city, giving it the name of the next Silicon Valley.

Property Investment is Booming in Manchester - the Next Silicon Valley

Property Investment is Booming in Manchester – the Next Silicon Valley

The latest report from Savills, titled Manchester Office: Market Spotlight, reveals that the city has seen a 20% annual increase in the take-up of office space, with experts claiming that this expansion will result in significant employment growth over the next five years.

These growth opportunities are primarily the result of the ongoing Northern Powerhouse initiative, which is supporting expansion in different sectors across Manchester – particularly the tech industry.

“Things are changing fast in Manchester, giving the city the very real potential of becoming the next Silicon Valley,” remarks Jean Liggett, the CEO of Properties of the World.

According to Wired, Manchester is already home to almost 52,000 tech workers – the largest tech workforce outside London – with the fourth highest digital turnover in the UK, at £2.9 billion.

The city’s Mayor, Andy Burnham, has pledged his commitment to creating a world-leading tech hub, and a growing number of tech start-ups are already snapping up office space across the city – 40% of business enquiries for office space are coming from the tech industry, according to Colliers International.

Indeed, the digital tech growth potential of Manchester is due to be further enhanced by the major expansion of the BBC. MediaCityUK, already the BBC’s second home in Salford Quays, will welcome 200 new employees this year. In addition, Indian firm 42Gears, which specialises in professional mobile software, is setting up a European technology and innovation base in Manchester city centre.

“Interest in Manchester is growing stronger and stronger as the city enjoys a bright economic outlook,” says Liggett. “Savills has predicted Manchester to be in the top five fastest growing cities from 2017 to 2021, which, in turn, is boosting demand for housing and investment properties.”

With so many tech professionals moving to the city, this is a great opportunity for landlords to snap up some rental properties to house them in before prices become inflated.

Could Manchester be your next property investment spot?

London’s Buy-to-Let Pain Becoming Manchester’s Gain, Expert Insists

Published On: August 23, 2017 at 9:18 am

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As London’s buy-to-let and property markets begin to dampen, it seems to be Manchester that’s emerging as the winner for investment.

That’s the opinion of one property expert, who notes that uncertainty has been the order of the day in the buy-to-let market for the past year, at the hands of the Government.

London's Buy-to-Let Pain Becoming Manchester's Gain, Expert Insists

London’s Buy-to-Let Pain Becoming Manchester’s Gain, Expert Insists

2016’s shock Brexit vote, followed by a hung Parliament this year, combined with Stamp Duty hikes, the reduction in mortgage interest tax relief, and imminent introduction of tougher lending criteria for portfolio landlords has created an aura of uncertainty and caution in the buy-to-let market.

Surprisingly, the ever-shining star of London even seems to be fading, with house prices down by an average of 0.6%, while private rent prices sit behind the national 12-month growth rate.

So, have the past 12 months permanently dampened the appeal of the UK’s buy-to-let sector? Should buyers be investing their funds elsewhere? Critics are divided.

Jean Liggett, the CEO of Properties of the World, gives her thoughts: “The uncertainty that the UK buy-to-let market has experienced over the past year has undeniably impacted investor confidence, but it seems to be primarily aimed at London.

“With interest rates remaining so low, investors still see the merit in purchasing bricks and mortar, but those seeking maximum returns in 2017 are increasingly looking at other areas than the capital.”

She believes: “By keeping an eye on regeneration plans and new transport links, it is still possible to find great areas to invest in.”

Indeed, despite splutters in the London buy-to-let market, buoyant activity is still being witnessed in other parts of the UK.

Greater Manchester has become a key destination for property investors and, thanks to its high demand from buyers and tenants alike, the city continues to register a strong house price growth rate of 6.7%.

Liggett adds: “As we have seen the capital’s market decline, other UK cities have stepped up and taken its place. London’s buy-to-let pain has become Manchester’s gain!”

Due to its proximity to both MediaCityUK and Manchester city centre, Salford Quays in particular is leading the way when it comes to buy-to-let growth.

2017 marks ten years since major transformation began in the area, kick-started by the BBC’s decision to move many of its jobs from London to Salford Quays. This £650m regeneration project has boosted the area’s credentials for buy-to-let investment, while Manchester has ascended to one of the top ten buy-to-let locations in the UK.

The latest Land Registry data paints a positive picture for Salford, with an average 5.9% increase in house prices over the past year.

Meanwhile, savvy investors will be watching with glee as news of more top class office space being snapped up is announced, suggesting a thriving local economy and growing rental housing demand.

It looks like Manchester is the place to be! Will you move investment there?

ICA-JL-VOTE-FOR-US

Manchester still a hotspot for buy-to-let

Published On: June 5, 2017 at 8:57 am

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New research from Armistead Property has revealed that Manchester remains one of the top 10 places in the UK for rental growth.

Average yields in the city were found to total nearly 9%.

Manchester Rents

The top postcode area in terms in rental yields in the region was M6, which covers Pendleton, Claremont, Langworthy and Salford. Rental yields here average at 8.84%, with typical monthly rents of £1,034.

With this postcode area situated close to the middle of Manchester and the University of Salford, this postcode region is popular with students and young professionals.

The M14 postcode area, covering Moss Side, Rusholme and Fallowfield, sees average rents of just over 8%. Once again, this postcode is popular with students-due to its close proximity to the University of Manchester campus.

Other postcode regions of the city offering good returns are M5 and M38, offering returns of 8% and 7% respectively.

Revival

Peter Armistead, Director of Armistead Property, observed: ‘Manchester has undergone a revival following significant investment, which has funded major regeneration and brought new jobs to the powerhouse of the North. Manchester has seen £800 million invested in the Airport City, £235 million for the Sir Henry Royce Institute for Advanced Materials and The Factory, with £110 million dedicated to the arts. Employment in the city is forecast to get an additional boost, with expected growth of 3.8% between 2015 and 2020.’[1]

‘It’s no surprise that both UK and international investors are queuing up to purchase BTL property.  Manchester beats London hands down on affordable property prices. Over the last three years, 45% of residential sales across the city were completed for less than £125,000. Manchester also offers much better rental yields, with between 8-9% in some postcodes, compared with an average of 4-6% in London,’ he continued.[1]

Manchester still a hotspot for buy-to-let

Manchester still a hotspot for buy-to-let

Young Demand

Moving on, Mr Armistead noted that, ‘There has been a surge in demand for rental accommodation with increasing numbers of students and young professionals working, or studying in the City. Manchester’s population is growing and is expected to surpass three million by 2035.’

‘The housing market in being bolstered by a major regeneraton north east of Victoria station, where 8,000 new homes are being built over the next 10-15 years. There’s also a £1bn plan for another 8,000 homes, including the conversion of the Murrays’ Mills and a further 3,000 homes on the former ITV Granada studios at St John’s Quarter,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/manchester-remains-a-top-btl-hotspot.html

 

Is Manchester the new property hotspot?

Published On: March 24, 2017 at 10:56 am

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Manchester is seemingly the latest property hotspot, after new research revealed that values here rose fastest over the last year than any other part of the country.

Property price values rose by 8.8% in Manchester during February, in comparison to the same period in 2016. Portsmouth saw a rise of 8.1% as buyers were lured back to the market due to an improving employment outlook and record low mortgage rates.

Price Rises

According to the latest Hometrack UK cites house price index, Bristol also saw high growth, with rises of 8% last month. The Index looks at property price movements across the UK’s 20 biggest cities.

However, the capital is seeing growth cool, with annual property price growth slowing to 5.6%-the lowest level since 2013. London is now tenth on the list of fastest growing cities, with weaker demand partly a cause.

Is Manchester the new property hotspot?

Is Manchester the new property hotspot?

Overall, the headline rate of growth for Hometrack’s UK Cities Index is running at 6.4%, down from 6.9% one month ago and 7.8% one year ago.

The table below shows how property prices for all 20 regions assessed by Hometrack have faired:

HomeTrack infographic

Flat

Richard Donnell, insight director at Hometrack, noted: ‘Levels of housing turnover across UK cities are expected to remain broadly flat over 2017. There is some further upside for sales volume in regional cities but much depends upon how would be buyers respond to external factors, not least the impact of lower real wage growth, the potential for higher mortgage rates and whether demand will be impacted by the triggering of Article 50 at the end of the month.’[1]

‘In cities where affordability remains attractive we expect demand to hold up in the short term albeit with slower growth in sales volumes. Overall we continue to expect the rate of house price growth to moderate over the rest of 2017,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/manchester-has-fastest-growing-house-prices-in-the-uk