"Manchester is absolutely booming and there is a huge wall of foreign and domestic money which has left London over the last few years, as yields have dropped and taxes have soared."
According to Savills, Asian buyers injected £4.5bn of money into Central London’s office market by the end of November 2016, amounting to a third of 2016’s total, much higher than 2015’s figures. Further research* shows that Asian investors accounted for 28% of the transactions in the UK property market in 2016, up from the 17% the year before. (Source: Property investment firm JLL, April 2017).
Most of the Asian wealth is coming from China, which has been one of the biggest buyers of UK property in the last year, capitalising on the weak pound and economic uncertainty caused by Brexit. According to Juwai.com, China's leading international property portal, growth in the enquiries into UK property in the last 12 months has jumped 60%, and Chinese buyers are increasingly interested to the UK.
While London remains a strong pull for Asian investors, many are turning to the powerhouse of the North - Manchester, attracted by its affordable property and excellent yields.
Peter Armistead of Armistead Property comments: “There has always been a strong Chinese base in Manchester. Brexit hasn’t worried them at all. In fact, they see it as a positive that the UK is leaving Europe will therefore be more open to other trading partners.
Manchester is absolutely booming and there is a huge wall of foreign and domestic money which has left London over the last few years, as yields have dropped and taxes have soared. In my 17 years of investing in Manchester, I have never seen such positive forces behind growth, or such a strong sales market.
London is very overpriced. Not surprisingly, Asian investors are attracted by the very affordable property and great yields in Manchester, which are up to 2-3 times greater than what can be achieved in the capital.
Manchester City Council is doing a great job encouraging growth and granting planning permission. Almost every week a huge development is given the green light. The city is undergoing some massive changes. There is a real buzz both in the media and locally and estate agents are selling everything they get their hands in the City.”
