CUSHMAN & WAKEFIELD RESEARCH SHOWS HOUSE PRICES IN MANCHESTER AND SALFORD OUTSTRIP NATIONAL AVERAGE
According to the latest research from global estate agency Cushman & Wakefield, house price growth in Manchester and Salford have regularly outstripped the national average, with values increasing 34% and 38% respectively, against a national figure of 30%.
Furthermore, increasingly strong rental yields have led to annual returns of between 11-20% being achieved over the three years to July 2017.
Latest forecasts record stable growth in the UK housing market in the coming two years, before accelerating from 2020 onwards. However, both Manchester and Salford are predicted to continuously outperform the wider UK market over the coming decade. Similar trends are forecast for the rental market, with rental inflation running at c.2%p/a to 2021, before returning to a more typical rate of 3%+p/a from 2021.
Julian Cotton, Associate Director at Cushman & Wakefield, comments: “Manchester benefits from a particularly active investor market, with over 52% of the entire housing stock lying in the Private Rented Sector (PRS).
“Considering the historically high rates of house price inflation in both Salford and Manchester, initial rental yields remain strong at present prices, averaging 5.3% for both areas. This resilience is a clear indication of underlying strong tenant demand as rates of rental inflation come near to keeping pace with house price growth.”
Manchester thrives on a vibrant and varied economy, fueled by an increasingly large, highly skilled workforce.
Home to a host of FTSE 100 companies, over a quarter of the cities office space is occupied by established companies working within the legal sector whilst other key areas of employment include financial services, insurance, media, tech and business services. Coupled with the established sectors is the emergence of a “start-up” scene in the city with the American co-working giant WeWork recently opening its second location in the city, the only UK WeWork sites outside of London.
Manchester’s bright future is underlined by the strength of economic and demographic forecasts, with the city set to outperform the UK benchmark in a number of key areas. Five year forecasts from Oxford Economics highlight the significant draw of the city with substantial growth in both the local workforce and population.
A great deal of these new jobs are predicted to come in the form of highly skilled roles, with the professional, two scientific and technology sectors set to experience a 10%+ increase in their workforce by 2022.
Overall, Manchester and Salford present excellent investment opportunities, particularly for those who are considering their options outside of London.
For further information, contact Cushman & Wakefield on Tel: + 44 0161 2358959 or visit: www.cushmanwakefieldresidential.com