Global real estate agent Jones Lang LaSalle recently forecast that Manchester will see the highest sales price growth and rental price growth in the UK over the next five years at 17.1% and 16.5% respectively.
Following a year of ups and downs in the housing market due to the pandemic and March lockdown, the property investment market starts the year on a strong footing, with house prices across all regions showing positive growth. But where should investors be looking?
Outside London, the biggest mover was Leeds, which had the country's second-fastest rise, a whopping 11.3% to an average price of £247,116, in just 12 months, according to the findings from Halifax. While Greater London took nine of the top 20 places for house prices in 2020, the North of England was not far behind with five places.
Below average house prices and high rental yields, together with the potential for impressive capital growth make the Northern powerhouse region hard for investors to overlook.
Doncaster took sixth place with a rise of 8.8% to £176,728, followed by Grimsby (11th place) with a rise of 7.5% to £168,035, Bolton (14th place) with a rise of 7.1% to £181,853, while Newcastle took 18th place with a rise of 6.6% to £213,887.
Stuart Williams, Founder and CEO of Thirlmere Deacon, commented: “Over the past 24 months, the UK property market has endured changing economic and political climates and remains to be incredibly resilient. 2019 brought political uncertainty and Brexit lingered over the UK, after the decisive election result in December 2019 the property market began 2020, with relative optimism and the ‘Boris Bounce’ triggered activity.
“As the pandemic took hold and the UK entered lockdown, the property market was effectively put on pause though a limited number of transactions completed and off-plan purchases were agreed during this time. Upon reopening in mid-May the UK property market saw pent up demand unleashed which has driven price growth upwards – every region in the country recorded an increase in house prices in 2020.
“The towns and cities in the North are continuing to lead the way on capital growth and yields, outside London. For example, Manchester continues to be one of the UK’s top-performing investment cities. Though it’s been an investment hotspot for some time, Manchester still offers an exciting opportunity for investors.
“The city is a leading European business destination and has attracted more foreign direct investment (FDI) than any other city in the UK outside of London. Regeneration continues across the city, including a £1.4billion development which works began on in December 2020.
“As one of the most established large cities outside of the capital, Manchester has attracted young professionals in high numbers; between 2002 and 2015 employment numbers grew by 84%. The economy in Manchester is growing at an incredible rate with no signs of slowing down."