Property Investment company, Fabrik Invest, has reported a staggering 70% of the company's sales were made in the city over the past three months.
Dale Anderson, Managing Director, Fabrik Invest, comments: “We've sold around £8 million worth of property in Manchester in the past quarter and demand continues to be strong. Manchester is ticking all of investors boxes right now, whether they're domestic investors or those putting their money into UK property from overseas.”
Why is Manchester such a favourite with investors right now? The city's property market, obviously, plays a key role in this. According to Zoopla's June 2021 UK House Price Index, Manchester has enjoyed the third-highest price rises in the UK over the past year, with an average increase in value of 7.4% (only Liverpool and Belfast have seen higher rises).
Savills, meanwhile, is forecasting a 28.0% rise in property prices across the North West over the five years to 2025 – a total that no other UK region surpasses.
When it comes to overall property investment potential, Manchester wins outright, with Aldermore's buy-to-let city tracker, published in late 2020, ranking the city as the best location in the UK for landlords to invest in. The rankings were based on numerous factors, from average rent to local void levels.
Further supporting the case for investment is the economic credentials of the North West – and Manchester in particular. According to data from the Office for National Statistics, labour productivity in the North West grew by 4.6% in 2020 (compared to 2019). This is the fastest rate of growth in the UK and well above the national average of 0.4%.
In addition, foreign direct investment (FDI) is pouring into the region, with only Greater London and Scotland attracting more FDI in 2020 than the North West. Manchester, meanwhile, is the UK's third best-performing city when it comes to attracting FDI.
Matt Harper-Penman, Group Director, Fabrik Invest, concludes: “Manchester is a leading light when it comes to property investment right now. With so much going for it, including strong demand for rental homes and a relatively low entry point – the average property there costs £188,900, compared with £488,600 in London – the city has an enduring appeal for investors.”
