Ideally situated with close connections to Manchester’s key leisure and employment hubs, No.1 Trafford Wharf is a modern development which retains its residential appeal with a stunning riverside setting and spacious, green communal area.
The development will be next to the upcoming Wharfside tram stop, providing fast and reliable access to the city and all of Manchester’s major shopping, lifestyle and entertainment districts.
For a city that is primed for becoming a world-class hub for business, creativity and culture, the cost of living in Manchester is relatively reasonable, boasting an affordability ratio of 4.6 compared to 8.6 in London.
Manchester Investment Case
From a city rich in industry, Manchester has diversified to become the beating heart of the Northern Powerhouse. Out of the six cities within the Northern Powerhouse scheme, Manchester recorded the highest growth in GVA per head at 6.8% since the inception of the initiative. It also boasts the highest number of development plans with GBP78 million funding for culture and leisure in the city.
The city is well-connected within the UK as well as internationally and is regarded as a key transport hub for the north of England. With High Speed Rail 2 (HS2) underway, as well as a GBP1 billion investment by Manchester Airports Group and Beijing Construction Engineering Group to expand Manchester airport. Piccadilly Station is the hub of HS2 within Manchester, and a central part of regeneration within the city such as the 6-stop GBP350 million Metrolink Trafford Park line extension.
These development plans, along with growing industries and world renowned education and digital sectors, is resulting in a growing population. Manchester city centre’s population grew approximately 10% from 2014 to 2017 and is projected to grow 37% between 2018 and 2024. Employment growth in Manchester is expected to exceed that of many international capitals, including Paris, Berlin and Tokyo, according to predictions by Oxford University economists. It is anticipated that 55,000 new jobs will be created before 2025, adding GBP19 billion to the Total Gross Value in the economy by 2030. Additionally, disposable income is expected to rise by 28%.
Properties in Manchester is selling fast, at a rate three times faster than London’s and only stay on the market for an average of 36 days. Its prices are rising rapidly too. Average house prices in Manchester grew by 6.6% from November 2016 to November 2017, outperforming the UK average, which saw house prices grow by 4.7% on average. Manchester’s rapid price growth is expected to continue, with a growth forecast of 18.5% from 2018 to 2021.
Rental rates are also on the rise, with 17% rental growth forecast over the same period. This is partly due to the many young professionals, new graduates and students in the city whose demand for housing, particularly new-build housing and city-centre dwelling, is putting upward pressure on rents. The stock of rental properties has already increased in an attempt to meet this demand, with the ratio of rental and sale properties on offer now equal after the rental market share grew by 10% in 2017 compared to the previous year.
Manchester is struggling to keep up with the pace of growth and demand for housing, especially following a dramatic decrease in residential completions since 2009. While Manchester City Council aims to build a minimum of 25,000 new homes annually until 2025, it appears that supply will be unlikely to catch up with demand for several decades as the economy and population continue to grow.
Construction is currently at its highest level since the global recession in an effort to increase supply. Despite this all signs point to an increase in property prices and rental demand, and continue to offer great promise to property investors for years to come.