A large population of under-30s are moving to Manchester as millennials are flocking to the Northern Powerhouse. In 2020, Greater Manchester was home to more 25 to 29-year olds than any other region in the UK, according to data from ONS.
So, why has it become a hotspot for young people, what’s behind all of the hype with Manchester and what does this mean for the local property market?
Property prices and cost of living
Since the release of COVID-19 lockdown restrictions, city centre living has been gaining steam with demand growing to record levels, and Manchester has been a popular choice. Better affordability is a big draw to this northern city. Some young people have been priced out of London and are finding lower housing and living costs in Manchester.
The average house price in London sits at a steep £516,285. This is 12.3 times the average annual gross salary, according to a property search app Movestreets. While on the other hand, Greater Manchester’s average property price is £210,171, which is just 7.4 times the average salary.
Cool and cultured status
Cheaper housing is not the only factor alluring young people here. Manchester has a cool status and an exciting energy about it. Regeneration schemes have also been transforming the city. Last year, the former industrial district Ancoats was deemed the 20th coolest neighbourhood in the world by Time Out.
In 2021, Mana, a Nordic-influenced restaurant, also received Manchester’s first Michelin star since 1977. Now, new restaurants seem to be popping up every week. On top of that, the culture scene is really accessible with cheap tickets on offer for a range of events. With so much on offer, Manchester is truly a word-class city in its own right.
A top city for businesses and professionals
Because of the rise of working from home, some professionals can live anywhere now, and many are looking to Manchester. It’s a media, creative and digital city buzzing with life. And more businesses are coming to the city, bringing even more job opportunities.
There are a number of top company’s headquarters and main offices in Manchester, including Boohoo and Amazon. TalkTalk recently announced plans to move the majority of its staff to MediaCityUK in Salford, which is already home to ITV, BBC and Kellogg’s. More and more businesses are following suit too.
Increasing rental demand
With the strong demand to live in Manchester, this is naturally being seen in the property market, and especially the rental sector. With tenant demand growing, rents have continued to increase and have even hit a new record with no signs of activity slowing down.
Rents in Manchester have increased by £254 pcm on average, or 21.4%, year-on-year in November 2021, according to urban bubble’s Manchester Monthly Snapshot from December 2021. Across all unit types, rents have risen in the last year and have dramatically increased over the past five years.
November 2021 saw unprecedented rent rises with values increasing up to 17.5% for some unit types. Homes with two or more bedrooms were the strongest performer. However, even the weakest-performing property type, one-bedroom apartments, saw rents increase by 14% in the previous 12 months.
During November, 499 properties were let in Manchester, which is 13% higher than the pre-COVID average for that month. While the market traditionally starts to slow down at that time of year, this was not the case in 2021. There was also little let-up during the holiday period, and the market is expected to continue strongly into the summer.
New property developments on the way
The number of rental properties sitting empty is near an all-time low. Throughout every month of 2021, lettings numbers remained above the pre-COVID average. This shows the resilience and strength of Manchester’s property market.
To keep up with this growing demand, there are a number of exciting new property developments being brought forward. In Manchester, there are currently 15,157 homes under construction. This is up 184 since October 2021. Additionally, 630 residential properties were submitted for planning.
Many of the newest developments are providing luxury amenities, giving residents access to everything right on their doorstep. Some even come with hotel-level amenities with pools, gyms, 24-hour concierge, restaurants, cafes, high-end décor and stunning city views, which is often unattainable in cities like London.
With all that’s happening in Manchester, it’s an exciting time to be a part of the city’s growth. Property investors are even benefiting from higher rental yields and strong capital growth. And as housing demand is only expected to increase further, this is making it an attractive property investment hotspot for the coming years.
At Salboy, we have a number of high-quality new-build developments available across Greater Manchester. For more information and personalised advice about investing in Manchester, get in touch to speak to one of our advisors.
