Nicknamed the “powerhouse of the north”, Manchester is making significant strides in terms of economic, population, and house price growth. The city is now outpacing the UK’s other Big Six cities outside of London, which include Birmingham, Bristol, Edinburgh, Glasgow, and Leeds.
Manchester’s economy expands
With an influx of investment and new businesses, it is unsurprising that Manchester has the highest GVA growth. Its economy has expanded 34% over the last ten years, whilst growth in the other Big Six cities over the same period hovers around 20%.
JLL predicts that Manchester’s economy will continue to lead the way with a projected growth of 25.3% over the next decade.
Migration to Manchester
City living has become increasingly popular in recent years. Young people in particular are flocking to the city in search of opportunities to work, study and socialise, and today, young professionals account for over half of all people moving into the UK’s major cities outside of London.
The Big Six cities are becoming increasingly popular locations to live and work, and will no doubt continue to rival London as people across the country are forced to tighten their belts.
With the highest population growth rate, Manchester is emerging as one of the UK’s favourite cities. Last year, 58,800 people moved to the northern city, and around 35,000 of newcomers were aged 20 – 34. The city council has also forecast that Manchester’s population will surpass 635,000 by 2025.
Demand for rental properties soars
The year started off strong in Manchester with a 25% year-over-year increase in rental applicants in the first six months of 2022.
Consequently, rent prices are on the rise. Manchester’s annual rental growth reached 18% in the summer, which is substantially higher than the Big Six average (15.4%).
Rents in the city are also 15% higher than they were three years ago in 2019.
House prices are rising fast
Manchester saw the highest increase in house prices over the last five years, alongside Birmingham. The average price of a flat jumped by 23% in both cities.
Between 2023 and 2027, sales price growth is projected to increase by 19.3% in Manchester. This is more than double the projected UK average of 8.9%.
It seems Manchester is on the rise in more ways than one. With a growing number of businesses and professionals setting up shop in the city, and demand for rental properties through the roof, all signs point towards continued growth in the city’s residential property market.
Therefore, if you’re looking to invest in the UK’s fastest growing city, now is the time to act.
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