As Brexit uncertainty is gripping London, Manchester has managed to flourish. Among the businesses and industries that are consistently growing throughout the Northern Powerhouse, the success of the tech sector has helped Manchester reaffirm the title of ‘Britain’s second city.’
The Tech Nation Report 2018 claims that Manchester’s tech industry turnover grew by 4% in 2017, more than the growth of the wider economy. From the start of that year to October, companies in the sector accumulated £200m in funding with businesses such as the events start-up TickX, health-tech company Push Doctor and fintech specialists Shieldpay greatly benefiting from these investments.
Manchester has also become home to unicorn companies – valued at over £1bn – such as Boohoo, AutoTrader and The Hut Group, who have recently announced a £760 million investment into the city. With massive businesses such as these joining the likes of Amazon and HSBC, it’s no wonder why relocations from London towards the north have trebled since 2010.
A combination of cheaper city living, decentralisation and strong domestic and international transport links mean Manchester has swiftly turned into an investment hotspot for those looking to purchase property away from the capital’s property bubble.
Whether it’s professionals looking for exciting opportunities or businesses looking for an international hub, Manchester will keep attracting both.
The Northern Powerhouse seems to have been largely unaffected by the Brexit uncertainty that has stunted London’s property market. Since June 2016, the average house price in Manchester has increased by 15%, compared to just 2% in London.
In June 2018, the average price for a property in London was £476,752. Meanwhile, the North-West of England had an average of £159,801. For investors, this means that they can get much more value for their money when investing in Manchester, especially with yields being 67% higher than in London.
The tech industry is expanding nearly 3 times faster than the rest of the UK economy and whether it’s developing driverless cars or Artificial Intelligence there’s no shortage of start-up and world-leading tech firms. In Manchester, there seems to be a heavy move towards a blockchain specialism with 151 meet-ups being attending by nearly 62,000 people.
Manchester is only going to continue developing as a major tech hub and with experts flocking to the city, the demand and price of housing are only going to rise. Currently, investors now have a unique opportunity to take advantage of the low price of housing before they increase any further.