WHY INVEST IN THE
UK PROPERTY MARKET
The UK housing market is one the strongest property asset classes in the world that offers clear opportunities to build long-term returns, thanks to its demand, stability, and security.
Due to rising house prices, demand for rental property has doubled since 2002. As of 2022, 37.5% of the UK’s population rent which has further increased due the appetite from international investors to add UK buy-to-let accommodation to their portfolios. Property forecasts predict the UK to see house prices rise by +21.1% by 2025.
Future Growth Forecsts (2023-2027)
Source: JLL Big Six Residential Report, March 2023
What are the key factors transforming the UK rental market?
The UK rental market has been undergoing significant changes in recent times. The demand for city living has increased post-pandemic, and this, coupled with market factors such as rising mortgage interest rates and the end of the help-to-buy scheme, has resulted in a supply and demand imbalance that is driving rental values to record levels. This is a key factor transforming the UK rental market.
For investors, Manchester and Birmingham are attractive propositions due to their attractive growth prospects. For renters, both cities offer a range of new homes in prime city centre locations with easy access to local amenities such as shopping, leisure, and entertainment, making them desirable for those looking for quality rental homes in a city environment.
Why invest in . . .
Manchester is a city that has been attracting a lot of attention from property investors in recent years. Here are some reasons why you should consider investing in Manchester property:
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Thriving economy: Manchester has an economy bigger than both Wales and Northern Ireland and is a key member of the Northern Powerhouse 1. By 2026, Manchester’s GVA is expected to be £2 billion larger than in 2022 1. According to Ernst & Young, Manchester’s economy will see annual average growth of 2.5% between 2024 and 2026, outpacing the national growth rate (2.1%) 1. This outpaces the national growth rate (2.1%) and puts the city third-fastest in terms of economic growth out of all UK towns and cities 1. The strength of the city’s professional, scientific and technical and financial sectors support Manchester’s positive economic outlook.
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Affordable housing prices: Manchester offers affordable housing prices compared to other major UK cities such as London. This makes it an attractive option for first-time buyers and investors alike.
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Strong rental yields: Manchester offers strong rental yields, with consistent demand from renters and high predicted growth 3. The demand for rental properties is driven by the city’s growing population and the supply and demand imbalance that is driving rental values to record levels.
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Attractive growth prospects: Manchester is an attractive proposition for investors due to its attractive growth prospects. The city offers a range of new homes in prime city centre locations with easy access to local amenities such as shopping, leisure, and entertainment.
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Regeneration projects: Manchester has undergone significant regeneration in recent years, with several large-scale projects underway or completed. These projects have helped to transform Manchester into a modern and vibrant city.
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Transport links: Manchester has excellent transport links, making it easy to get around the city and beyond. The city has two major train stations - New Street Station and Moor Street Station - which provide direct connections to London and other major UK cities. The city also has an extensive bus network and a tram system.
These are just some of the reasons why you should consider investing in Manchester property. With its thriving economy, affordable housing prices, strong rental yields, attractive growth prospects, regeneration projects, and excellent transport links, Manchester is an attractive option for both first-time buyers and investors.