The UK Property market has been booming, with Manchester house price growth rate breaking record levels. This isn’t just our words; the stats proves it. And of course, the figures don’t lie.
The current average house price in Manchester is wowing investors, and there are opportunities for even more. Other real estate investing parameters like Manchester average rent has skyrocketed, making it more enticing.
Let’s take a quick look at the stats as we analyse what the future holds for potential investors in this market.
Manchester Property Market Forecast For 2022 – What’s In Store For Investors
An analysis by Plumplot puts Manchester (6.5%) ahead of Bury (5.5%) and Salford (6%) for its house price-to-earnings ratio. Even at that, it still has a lot in the pipeline.
Some reported data predicts an 18.8% 5-year average growth rate for the North West. Alliance Investment on the other hand, forecast 25.8% for the same period. Both predictions are higher than the UK average (13.1%).
Manchester property prices are expected to grow by a 6% minimum in 2022. Its rental market is also attractive, with a population of more than 2,770,000 and up to 8% rental yields.
The fast-rising housing prices in Manchester, coupled with good rental yields make Manchester one of the best places for property investments in the UK.
Average House Price Growth In Manchester Compared To Similar Cities In The UK
According to Ceri from the Office for National Statistics, the average house price in the UK was £286,000 in June 2022, an increase of £20,000 over same time last year. Plumplot, however, revealed that the average depends on property type: why detached averaged £405k, semi-detach is £262k. However, flats and terraces have the same average – £192k
When you compare Manchester property prices in 2021 to those of similar cities (e.g. London, Trafford and Edinburgh), you will find that Manchester is more affordable than them. This is an added advantage for those prospecting on Manchester property investment.
Why Invest In Manchester Property
Location is a key factor in real estate. It determines whether or not investors will achieve their goals. Imagine getting good ROI – first from rental income and next from capital gain when you eventually liquidate it.
But how do you locate the right place to buy your next property?
Well, you can get a clue from the highlighted criteria below:
Buy your next property from a commercial or industrial city because the available opportunities there keep attracting more people, resulting in a housing deficit. And of course, you know this prevailing rule, “The price for a scarce good will rise until an equilibrium is reached between supply and demand.”
Obviously, Manchester meets the criteria. Its apartment (supply) shortage will make it continue to break more growth records in the future.
Are House Prices Still Rising In Manchester?
As earlier said, don’t take our word for it. Look at the statistics again, you will notice the attractive Manchester house price growth rate that has partly kept the city in the news. They are what smart investors crave.
Obviously, Manchester is pregnant with promising ROI for home buyers. Anyone furnished with this piece of information that still misses out might not stop beating themselves for it.
You can shoot us a direct message if you are considering Manchester for your next property investment. We will be glad to help.
Alliance Investment (2022). Manchester property price boom set to continue – five year growth forecast explained. https://news.alliance-investments.com/news/manchester-property-price-boom-continues
Gill, B. (2022, July 5). Why you should invest in the Manchester housing market. 24 Housing. https://24housing.co.uk/why-you-should-invest-in-the-manchester-housing-market/
James, C. and Thomas, B. (2020, December 18). Scarcity principle. Investopedia. https://www.investopedia.com/terms/s/scarcity-principle.asp
Philips, R. (2022, March 3). The best cities to start a business in Great Britain. Nerdwallet https://www.nerdwallet.com/uk/business/best-uk-cities-start-business/
Plumplot (2022). Manchester property prices. https://www.plumplot.co.uk/Manchester-house-prices.html