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Manchester records top national property price rise of 18% in a single year
April 4, 2014Article by Ray Withers
Manchester is now rivalling London as the UK’s top performer in terms of house price rises over the past year, according to the latest figures from Nationwide. The company’s March report shows both cities as having achieved year-on-year increases of 18%, racing ahead of the UK national average of 9.5%.
While London’s house prices have now more than doubled the UK average (at £362,699, compared with a national average of £180,264) and left other cities with no hope of catching up in terms of actual price, Manchester is certainly performing incredibly well compared with the rest of the UK. The average home there is priced at £211,748 according to the most recent Nationwide figures – some 17% above the UK’s average – making the dynamic city one of the strongest performers in the country.
So what is it about Manchester that has caused it to lead the UK in terms of property price increases over the past year? The hugely ambitious NOMA regeneration scheme has certainly played a part. The massive urban redevelopment project has already seen flagship buildings, such as the Cooperative Group’s new headquarters at One Angel Square, impact on local prices and attract new business to the area.
This week’s news that the Cooperative Group and Hermes have struck a deal that will see 20 acres of land in the Victoria Station area rejuvenated, including hotels, shops, offices and green spaces, will no doubt lead to further residential property price rises as the work progresses. The thousands of jobs that the £800m transformation of the city centre is set to generate is also set to have a significant impact.
Manchester’s thriving residential property market is leading to some fantastic opportunities for real estate investors. The three bedroom apartments at Trafford Mill, offered to the market by Property Frontiers, are a prime example. Completed, fully furnished and already tenanted, the apartments offer immediate income to investors – with 8% NET annual rental return assured for a year – as well as longer-term capital growth. Property Frontiers Chief Executive Ray Withers comments,
“The Trafford Mill apartments provide the ideal location for investors to gain maximum benefit from the city’s renovation. Right in the centre of Manchester’s burgeoning business hub, they have already attracted tenants, meaning that investors’ income is generated from the outset. Add to that the incredible low entry point for purchasers – just £115,000 for cash buyers – and you have one of the leading investments in Manchester right now.”