Manchester property prices to boom in next decade
An interesting new survey has predicted the top ten English locations where property prices are likely to soar during the next ten years.
Manchester tops the list, while surprisingly, London is nowhere to been seen.
Predictions
The research was conducted by online estate agents HouseSimple and suggests that locations such as Rotherham, Leicester and Surrey will see property prices increase substantially during the next decade.
Of the locations in the top ten, there are a mixture of cities and commuter towns, with a strong variation of house prices. HouseSimple made their predictions using key indicators, such as good transport links, young populations and upcoming, trendy eating locations.
The top ten locations were:
- Manchester
- Rotherham
- Harborne, Birmingham
- Leicester
- Hythe, Kent
- Norwich
- Hove
- Ipswich
- Ilkley, Bradford
- Woking, Surrey
Unsurprising
Peter Armistead of Armistead Property noted that, ‘it’s no surprise that Manchester has come out on top thanks to the expansion of the MetroLink tram system, the trendy Nothern Quarter and the BBC Media City.’ He said that, ‘Manchester has been voted, for a second year running, the best place in the UK to live. It has an amazingly vibrant restaurant, bar, club and music scene, not to mention its galleries and museums.’[1]
‘We have an amazing student scene and our Universities and teaching/research facilities are truly world class. Manchester is home to nearly 100,000 students, making it one of the largest student cities in Europe,’ Armistead continued. He feels that, ‘Despite all of its many advantages and attractions, Manchester is actually a very affordable place to live and many students chose to carry on living here after they graduate, as well as graduates from other areas moving to Manchester. There’s a very important young professional scene in Manchester. The cost of wages relative to property costs is a very important factor in attracting these people. House prices in London are about five times what they are in Manchester, but salaries are only 30% higher.’[1]
Manchester property prices to boom in next decade
Affordable
Mr Armistead said that an, ‘average residential property in Manchester is just £155,000, while a flat in a good area costs as little as £120,000. It’s not surprising that many investors, especially from the South, are targeting Manchester as a great place to invest. A property in Manchester can provide a 5% minimum cash rental yield and a typical 12% total cash yield, including 7% capital appreciation. Demand for rental accommodation is strong and by comparison with other regions, housing is cheaper.’[1]
‘Manchester is a great place for investors. I have built a successful, mid-sized portfolio of buy-to-let properties in South Manchester. Over the last 12 months I have enjoyed average rental yields of 6% per cent across my 80 properties,’ Armistead concluded.[1]
[1] http://www.propertyreporter.co.uk/property/manchester-predicted-to-boom-in-the-next-ten-years.html