Recent research by UK Finance has shown the gross mortgage lending market at £22.1 billion in June. This is a 9% increase on May and 3% higher than the same time last year.
Over the second quarter of the year, this equates to an estimated £60.3bn which is 3% up on the first quarter of the year and 6% above Q2 in 2016.
Over the last few years, these figures have been supported by steady activity in homeowners re-mortgaging and first-time buyers. The increase in first-time buyers can be attributed to the government’s help-to-buy scheme which has seen over 150,000 new buyers get on the property ladder.
This is good news for the housing market in the UK but has been especially noticeable in Manchester after a raft of international companies and start-ups have taken up residence in the city.
The Office for National Statistics found that in 2015 Manchester saw an increase of 8.48% in new businesses over the previous year. And since 2010, Manchester has seen the largest growth of new businesses of all the core English cities. This is reflected in a 1.5% increase in employment levels, placing Manchester third in the UK, according to the UK Powerhouse Growth Tracker.
With this increasing, the number of jobs and workers in the city is also steadily rising and this has triggered a building boom to be able to provide accommodation for all those looking for it. As of Q4 2016-17, Manchester city centre saw a growth in the average property price by 1.7% and Greater Manchester (excluding the city centre) 10.6%.
The number of empty properties around the city has decreased in the last four years from just over 1.5% to less than 0.7%, and combined with the increase in new properties shows the need for housing.
This trend is set to continue with predictions being made that Manchester’s economy will grow by a further £600m by the end of the year; increasing the number of people looking for housing in the city.