Manchester housing boom 'shows no sign of slowing'

by Gary Whittaker

Manchester's housing boom is continuing with no sign of any let-up, according to property firm JLL. 

The company's residential team witnessed a 200 per cent year-on-year increase in city centre sales in the first three months of 2018, the Business Desk reports. 

JLL said the demand is not just from owner occupiers, but also a fast-growing buy-to-let sector in central Manchester. 

The latest figures reflect the ongoing surge in demand in a city where the plethora of cranes and half-built residential skyscrapers testify to a booming market. Indeed, JLL's own report on Manchester city centre tipped price growth to run at 6.5 per cent a year up to 2022. 

Lead director for regional residential at JLL Stephen Hogg said: "The simple fact is that Manchester has seen the most consistently strong house price growth in the UK over the last five years. It has a similar supply issue to many areas across the country but higher levels of demand from both owner occupiers and investors.

"As well as driving house prices, this demand has been a catalyst for huge growth in build-to-rent development - a market where there’s also significant demand."

The key factors identified by JLL for this are well known; the overall growth of Manchester's population has been particularly strong, as evidenced by the 19 per cent rise in the decade to the 2011 census - the highest of any English local government area outside London - and local projections of further increases. At the 2011 census the population was stated to be 503,000 and, according to Manchester City Council, it is now around 530,000.

In addition, Manchester not only has a large student population, but also a high graduate retention rate, with around half looking to stay in the area. This means plenty of demand for rental property for young professionals and, Mr Hogg noted, supply is still "some way off" catching up with demand.

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25-May-18General Lettings News