Properties in Manchester city centre are selling 70 per cent faster this year, as the number of investors and first-time buyers climbs.
JLL says that in 2017 to date, it took an average of just nine days for a city centre property to go from being listed on the market to having a final offer agreed and conveyancers instructed – compared to 30 days in 2016.
Indeed, with schemes like Nuovo and Castlegate on JLL’s books, that demand has seen the agency complete £4.5 million worth of sales already this year.
The shift in gear is indicative of how attractive the market is right now, with both first-time buyers and buy-to-let investors able to purchase homes without being subject to the chain that usually hinders hoem movers and second steppers. Of the homes sold by the team in 2017 so far, meanwhile, only one has been bought at less than its asking price.
Louise Emmott, residential director at JLL, says: “The new year often acts as a time of change for people, so we expect to see the residential market heat up around this time, but the step-change in transaction speeds which we’ve seen over the past few weeks is unprecedented. The fact that most sales are being agreed at or above the asking-price is a further sign of the huge demand in the city centre market both from owner occupiers and investors looking to capitalise on rising rent prices as city centre living continues to grow in popularity.”
According to Hometrack, Manchester has recently seen its house prices climb at their fastest rate in a decade. JLL expects that growth to continue in future years: the average price of a two-bed flat in the city is forecast to rise by 7 per cent this year and by 28.2 per cent by 2021. Rents will also rise by 20.5 per cent in the next five years.
Manchester rental market heats up
17th March 2017
Manchester’s rental market is heating up, as the Northern Powerhouse becomes a hotspot for buy-to-let investors.
The regional city is one of the brightest housing markets in the country, thanks to its strong economy, growing population and affordable property prices. It it no surprise, then, that online letting agnet Upad highlights the city as an increasingly popular targt for landlords.
Upad’s records show that Manchester has seen a 100 per cent surge of landlords in both December 2016 and then again in January 2017, indicating that buy-to-let investors are being attracted by the bright lights of the Northern Powerhouse when it comes to buying their next rental property.
Major investment in Manchester means that the city is now reported to be offering an overall rental yield of 6.2 per cent, with RICS also reporting that rents in the city are predicted to increase by around 25 per cent in the next year.
Demand for accommodation is rapidly seeing prices increase. Manchester is the fastest growing city outside southern England, with prices up 8.3 per cent in the last year, according to Hometrack’s latest cities index.
Home.co.uk’s latest market report observes “stagflation in the UK property market”, but it notes “significant growth in several regions over and above the rate of inflation”, with vendor confidence highest in the East of England, East Midlands, North West and South West.
“Whilst the slowdown persists in London and the South East, brought on by oversupply and overly high prices, it is these more outlying regions that are lending the greatest support to the national housing market figures,” says the report.
Nonetheless, property values remain around a third of those in London.
“2017 looks set to be a good year for the Midlands and the North,” comments Home.co.uk. “Price growth is at sustainable levels and supply is not increasing. In addition, rental yields are generally good relative to overbought London and the South East, and this will tip the balance of Private Rented Sector investment in their favour.”
James Davis of www.upad.co.uk says: “Manchester’s buoyant rental market is clearly causing investor heads to turn away from the overheated market in London and the south towards a much more appealing prospect in the north. Manchester is time and time again proving to be highly desirable as a location to both live, work and study, which combined with a comparatively affordable housing stock and increasing rents, yields are offering higher returns. Also as house prices are increasing at a faster rate in Manchester compared with London’s current cooling market, investors are more likely to benefit from any associated capital gains too.”Google+