Rewind back to 2007 when London was the hotspot for those looking to invest in properties, the capital city offered so much and boasted a 15% year on year growth back in July 2007. Fast forward to now and the capital isn’t looking so hot anymore, as there is a new, exciting and thriving city to invest in – Manchester.
Being one of the fastest growing cities in the UK with property prices seeing a year on year growth of 7.1%, Manchester is offering investors a greater profit as opposed to London.
The recent UK City House Price Index indicates that Manchester is seeing a 7% city house price inflation year on year, whereas London is only seeing around 4%.
The drastic slowdown in London house price inflation has bottomed out with an increase in the annual rate of growth of 2.8%. There are very small price gains being recorded against the backdrop of lower turnover. When you consider the fact the average London house prices are over double the price of that in Manchester, a 4% inflation rate means your ROI will be poor. However, in Manchester, you pay less but will receive more profit in the future.
But why is Manchester beating London? Well, a huge reason is down to the development of MediaCityUK. Back in 2004, the BBC had signaled their intention to move jobs from London to Manchester, choosing Salford Quays as their new home in 2006. MediaCityUK is the child of Peel Media who in 2007 were granted permission to develop the Salford Quays site, now home to the BBC, into what we now know as MediaCityUK. Not only is it home to the BBC, but ITV Granada also packed its bags and moved to the popular Salford Quays site in 2013.
MediaCityUK is to be developed in two phases, the first phase was completed in 2011 with the second phase being given the go-ahead earlier on in September. This means MediaCityUK is now set to double in size and with 60,000 people already working there, this promises expediential growth.
But of course there is more to Manchester than just MediaCityUK, in fact, Amazon has recently employed 3000 people at Airport City! As well as this, Manchester City Council has committed to build 10,000 houses every year until 2035. That combined with the steady house price inflation is set to be a great investment.
There has already been interest from overseas investment as the Beijing Construction Engineering Group has now invested £800 million into the current expansion project at Manchester Airport which is one of the busiest airports outside of London.
We saw from an early date that Manchester would boom and that is why we are so proud to have so many innovative developments there. The statistics are there from the Hometrack UK Cities Index – Now is the time to invest in Manchester.