Manchester has been attracting growing volumes of UK and international property investment as investors look for better value and higher yields outside of London, while various factors within the city have helped make for a stronger and more confident property market.
Apart from London, Manchester is the UK’s biggest economic region. The city is therefore playing a key role in the government’s £7 billion Northern Powerhouse initiatives, and this has made for a number of exciting developments. In particular, Manchester is to benefit from devolved powers, and will become the first UK city besides the capital to have an elected mayor in order to take full advantage of these powers. This process of devolution will allow local authorities within the city to take much closer command of things like transport infrastructure and healthcare provision.
Experiencing strong growth and with equally strong forecasts for the future, investors from far and wide are being drawn to property investments in Manchester. Its role in the Northern Powerhouse plans and the devolution of powers is further bolstering the city as a property investment market, according to delegates at the “100 Days After the Election” event held by Insider in the city last month.
Speaking at the event, Bruntwood property director Peter Crowther said: “Confidence is born from stability and the knowledge that you know the system you’re operating.” By taking “the lead” and “the decision to run with an elected mayor,” he said, Manchester has strengthened itself on this score and as such has “given the property sector confidence.”
Certainly, Manchester’s enviable popularity with investors is still growing. The European Regional Growth index from LaSalle Investment Management, identifies a wish list of popular investment markets in Europe. With the release of the latest index, Manchester has climbed three places. It now occupies 17th place – a strong position on a list that spans an entire continent – and its movement up the list has identified it as one of the most prominent risers.
Other major UK entries on the list include Bristol, ranked 25, and Birmingham, which placed 37th. The most prominent UK city on the list, however, is still London. The list has long been topped by London and Paris in the top two positions, and the latest index has maintained this trend.
Manchester’s high placing and rapid rise on the list are well-supported by other metrics, measurements and reports. Institutional investors have been increasingly favouring the city lately, and as part of the aforementioned Northern Powerhouse efforts the Prime Minister has been promoting the city at home and abroad for its investment potential. HSBC also recently praised Manchester as a place to invest, naming it the single highest-yielding investment city in the UK.