Manchester is fast establishing itself as a major force in the UK economy. The development of the Northern Powerhouse has generated an interest from businesses in relocating to Manchester with notable inclusions such as Media City in Salford, and the emergence as Manchester as a leading tech hub.
In fact, a report by national accountancy group, UHY Hacker Young found that Manchester creates 79 new businesses per 10,000 per population which is 50% higher than the UK average.
Over recent years, companies such as Google, Amazon, Freshfields, LLP and Microsoft have opened offices in Manchester. The affordability of office space when compared with other major cities is a major factor for big business wishing to take advantage of Manchester’s excellent location.
Improving infrastructure is drawing more and more businesses to the city. Recently, The Greater Manchester Combined Authority spent over £280 million on transport, improving metro routes, adding cycle lanes and improving pedestrian routes around the city.
Additionally, HS2 is due to arrive in the city by 2026, which will provide high speed links around the UK, cutting journey time to London to just 67 minutes. This connectivity underpins the appeal of Manchester as a real hub of the UK industry.
Thanks to the appetite from big business for Manchester office space, Manchester’s core urban area has grown on average seven times faster when compared to other central metropolitan areas of the UK.
In the City, the Spinningfields business area is home to several impressive towers and buildings where companies including RBS, Barclays, Bank of New York Mellon and PWC all have offices.
But it’s not just corporates making Spinningfields their location of choice – the area also welcomes a range of start-ups, and freelancers thanks to the offering of boutique co-working spaces, hot desks and event spaces.
Outside the city centre, Trafford Park is a thriving business park and industrial estate where over 40,000 people are employed. With global brands including L’Oréal, Kellogg’s, Unilever and Amazon operating there.
Media City in Salford famously houses the BBC and ITV, alongside hundreds of other companies in the media and innovation sectors. Thanks to plans for a £1bn extension, the area is set to double in size over the next ten years.
What this means for housing market
The rapid growth of the population in Manchester has seen property prices increase in the area, with prices rising 6.7% between January 2017 and January 2018, however values are still extremely attractive when compared with other areas of the UK, with the average house price at £158,000.
The huge influx of employees coming into the area has also seen strong demand for rentals in locations across Manchester, while rental price growth stood at 5.76% at the end of 2017.
Indeed, the very factors that are attracting businesses large and small to Manchester are also what are fuelling the appetite for property in the area – excellent transport links, a thriving economy, and the great potential for the future.