Property hotspots in Manchester and Liverpool
The property market in the North West has attracted a lot of media attention over the past year, as well as domestic investments. All this coverage and attention has led to house prices, transactions and rental values skyrocketing in a number of areas in the North West, especially in and around Manchester. But where are the property hotspots?
The affordability of properties in London has been stretched somewhat, with many seeking to move away from the capital over fears they will no longer be able to afford to live there. This is due to a very large inflation rate in London and the surrounding suburbs. Living in the centre of London has become reserved for the elite views and as a result of this, the prices of properties in the suburbs have grown vastly. Due to this, the attention of a lot of property investors and buyers has turned to England’s Northern regions where the prospects are a lot more promising.
Manchester property hotspots
A cooler market condition in London has led to a slowdown in the latest rate of growth according to the Hometrack’s UK Cities Index. They calculated that it is now running at a rate of 6.4%, down from 6.9% last month and 7.8% a year ago. Manchester has registered the greatest city uplift in the country, they have increased by 8.8% in the last year.
The sales director at Ascend Properties, Ged McPartlin has suggested that: “For years we have stressed that the Manchester property market was going to enjoy hugely positive growth, owing to affordability, widespread investment across the city, excellent transport links and employment prospects – with swathes of young professionals now choosing to make it home.” He continued to describe how: “Now we are consistently seeing the figures to back it up, with the latest Hometrack report showing that Manchester is leading the charge outside of London and the south.”
The growth rate of cities such as Liverpool and Manchester has now surpassed London. Home prices in London are now 85% higher than they were in 2009. Prices in the capital have been overdue a cooling off period according to the managing director of Secure Property Investment, Graham Davidson. He suggested that: “From an investment point of view, as the Hometrack report shows, the rise of the northern regions is now a primary focus – with lower entry prices and yields that are simply not available in the capital anymore. He continued to describe how: “Our own business has seen numerous investors taking their money out of London and we expect this to be a growing trend in 2017.”
Manchester has seen it’s increased levels of interest due to the BBC Media City, a major expansion on the Metrolink tram, extensions to the airport, the Northern Quarter growing and the fact that Manchester is becoming the dominant powerhouse of the North. Manchester recovered from the recession in 2007 a lot quicker than any other city did. The average house price in Manchester sits at around £152,000. There are still some regional variations across Manchester, with the most expensive homes being located in the city centre. Capital growth has been led by Trafford and Stockport.
Manchester currently houses 100,000 students as well as the highest number of 25-29-year-olds out of anywhere in the UK. This makes Manchester all the more desirable for property investors. Kuflink, a peer-to-peer lender, have examined the average rental yield in 50 major towns and cities across the UK and discovered that Manchester is leading the way, with an average rental return of 6.7%.
Property hotspots in Liverpool
Liverpool has long been in the shadow of its close neighbour Manchester. The housing market recovery took a lot longer to reach Liverpool than Manchester. The city has seen a robust growth in property prices, with an increase of 6.8% over the past 12 months. “There is a lack of properties coming on to the market which must, eventually, lead to price inflation,” said Derek Coates from Liverpool-based company Venmores. He was more than happy to tell the press that it had been a strong year with regards to sales enquired and for sales agreed.
The average house price still stands significantly lower than many other cities in the UK (£115,600) and they are still quite some way off matching the record highs they achieved in 2007. “Liverpool is becoming a city for property investors with more building applications being filed every month,” said Mish Liyanage, managing director of The Mistoria Group. 150 acres is set to be transformed thanks to a £5bn investment in Liverpool’s Water scheme which will be located in the Central Docks area.
Lindsey Ashworth, director of development of Liverpool Waters, said: “Liverpool Waters is a unique opportunity to invest in a world-famous waterfront and it’s no surprise that this latest phase of the project has already generated interest from investors and developers.” Liverpool is currently offering some of the best rental yields in the country as well as some of the most impressive capital growth statistics.