London has long been seen as the top property investment location in the UK and there is no doubt that the capital will remain one of the most influential locations for young people in the years to come. However, interest in Northern property is growing with the success of the Government’s Northern Powerhouse scheme which has helped rebalance the national economy. There have been vast improvements to major cities such as Manchester, impressing the many millennials who are struggling to cope with the cost of living in London.
According to the latest figures from the Office for National Statistics, 291,620 people gave up on their home in London in 2016, 36,480 more than in 2012. Many people, particularly those aged 30-34, were eager to look further afield with a net outflow of 16,850 last year, a deficit that has increased significantly since 2012. A main factor in this is the unaffordability of living in London, making it almost impossible for the younger generation to get a foot on the property ladder.
If it is the worst of times for London, it is the best of times for Manchester.
Many of these young professionals are relocating to Manchester, where the cost of living is much more affordable and career prospects are good. This spells great news for the Greater Manchester region where the rental market is performing extremely well, with the supply and demand imbalance gap widening. In the last 6 months, supply has fallen by 11.4% due the ever-growing demand for rental housing. This has pushed up average house prices, allowing landlords to increase their rental yields.
As the London market continues to falter with house prices still experiencing a slowdown, many investors are looking further afield for properties at a better value, especially since the tax regulations came into effect in April. As a result of this, the Manchester property market has attracted a lot of attention amongst domestic and overseas investors, helping transactions to increase and house prices to grow. With London prices much higher than those in the North, it has simply become an unprofitable option for investors, according to most recent studies.
Manchester is home to more people between 25-29 years old as a proportion of its population than anywhere else in the UK and is becoming the second option for investors turning their attention away from the capital. The city is going from strength to strength, experiencing above average house price growth in the last three months at 4% compared to the national average at 3.2%, showing that Brexit negotiations have had very little impact on the Northern property market.
Greater Manchester’s success has been largely to do with the huge regeneration programmes which are taking place in Manchester city centre and across the districts, improving connectivity through the region. Transport has been one of the priorities in Manchester, a city which will benefit from the ground-breaking high-speed train, HS2, which will slash the journey time to London as well as to other key cities.
The Metrolink is an excellent example of public transport which already exists in Greater Manchester, with the number of passengers using the tram network at a record high in 2016. The number of journeys came to 34.3 million, increasing by 10% from 31.2 million from the year before.
The North-South divide has opened up in the property market as extortionate prices in the south make it an unprofitable option for investors, and this goes some way to explain the lack of demand in the South. House prices in Greater Manchester are predicted to rise by 26.4% in the years up to 2021.
The latest addition of the flagship development Fortis Quay is Northill Apartments located in Salford Quays. Featuring a selection of studio and 1-3-bedroom apartments, the premium tower raises the bar when it comes to luxury living with all apartments designed to the highest standard possible and many containing stunning waterfront views. Northill Apartments is in prime location; within walking distance of the development site is MediaCityUK and only a few tram stops away from Manchester city centre.
Northill Apartments is a great addition to Salford’s rental market where demand is high for good quality rental housing. Register today to find out more about this excellent investment opportunity!