Manchester property guide www.knightknox.com
Contents Page 4-5: UK Property
Page 12: Life in Manchester
Page 6-7: Manchester Market
Page 13: Transport
Page 8-9: Regeneration
Page 14-15: Knight Knox
Page 10-11: City hotspots
UK Property UK property performance has reached new levels in recent times. Amidst a wave of economic uncertainty, property investment in the UK didn’t just remain stable, but actually thrived. According to the Office for National Statistics (ONS), house prices across the country increased by an impressive 10.8% over the year to December 2021 – a £27,000 increase. Rental prices paid by tenants in the UK also increased throughout 2021, rising by 1.8% in the year to December 2021 according to the ONS. When you remove London rents from the equation, this figure rises to an impressive 2.7%. The North West, East Midlands and South West were amongst those with the highest increase over the year. Whilst the Government’s temporary stamp duty holiday definitely spurred the market on in 2021, the market continued to perform at extremely high levels even as the holiday came to an end as the demand for property soared, and as the economy begins to settle down once again the property market looks set to continue to boom.
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House price change (pa)
2022
6%
2023
4.5%
2024
4%
+25.8%
2025
4%
2026
5%
JLL, Q4 2021
JLL, Q4 2021
Predicted Manchester house price change between 2022-2026
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Manchester
In their residential market forecast, Savills have predicted that house prices are set to increase by 3.5% in 2022 and a cumulative 13.1% across the entire UK over the next 5 years. The North West and Yorkshire and The Humber, are the two leading regions for house price growth, with both forecast to experience an 18.8% increase by 2026. JLL echoed this sentiment in their ‘UK Residential Forecasts 2022 – 2026’ report, predicting a 4.5% increase in house prices in 2022 and a cumulative 27.7% by 2026. They also forecast that rents in the UK are set to follow in a similar vein, with a 2.5% increase in 2022 and a 15.4% increase by 2026. After an extremely strong few years and an equally positive forecast for the foreseeable future, now is looking like the perfect time to invest in UK buy-to-let.
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Manchester market Famous around the world for its industrial heritage, football teams and music scene, Manchester is constantly named as one of the UK’s leading cities for property investment, and it’s clear to see why. The city has been integral to not just the immense amount of growth in the Northern property market, but to the growth of the entire UK market. In the 12 months to December 2021, property prices in Manchester increased by an impressive 8.7% - equivalent to £16,000 – according to Zoopla’s House Price Index. Looking back over the last 5 years, this is a massive increase of 35.4%. In addition to substantial house price growth over the last few years, rents in Manchester have also soared. In their December 2021 Manchester Monthly Snapshot, Urban Bubble reported that rents across Manchester had increased by 21.4% – £254 pcm – on the year prior, as the massive shortfall of rental properties paired with unwavering demand continue to push rental prices up.
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The good news for property investors is that Manchester’s impressive growth is showing no signs of slowing down anytime soon. In their aforementioned UK Residential Forecasts 2022 – 2026, JLL predicts that house prices are set to increase by 6% in 2022, followed by sustained growth over the next 5 years, culminating in an impressive 25.8% growth. The rental market is also expected to follow suit, increasing by 4% in 2022 and 15.9% by 2026. With unprecedented demand for rental property in the city paired with consistently rising house prices and rents, Manchester offers unparalleled potential for capital appreciation and rental growth over the next few years, making the city the leading location for buy-to-let investment in the UK.
15.9%
Manchester rental price increase between 2022-2026 JLL, Q4 2021
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Regeneration One of the key factors in Manchester’s sustained growth over the last few years is the vast amount of investment to regenerate key areas in the city. The last few years have seen the transformation of Deansgate, Ancoats and New Islington to name few, and there are plenty more projects underway that will only enhance the the local economy.
Mayfield Public Park The new £1.4bn Mayfield development will transform the derelict site into a brand-new mixeduse neighbourhood that will feature the city’s first new park in over 100 years. The scheme is set to introduce 1,500 new homes, 1.7m sq ft of office space, shops, a 650-bed hotel and a car park opposite Manchester Piccadilly Station.
8%
Economic growth in Manchester was the second highest of 30 major European cities in 2021, expanding by 8% Avison Young, Q2 2022
16.4%
Manchester is set to see the highest rate of economic growth amongst all major cities over the next 5 years, with a GVA growth of 16.4% Oxford Economies, Q4 2021
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Stevenson Square Located in the heart of the Northern Quarter, the pedestrianisation of Stevenson Square has been a hotly debated topic over the last few years, but 2022 looks set to be the year it finally comes to fruition. The plans, which were put to the public at the end of 2021, are to create a newly formed public square in the heart of the Northern Quarter.
Piccadilly Gardens
Circle Square
Starting with the knocking down of the muchmaligned concrete wall in 2020, the £2m re-invention of Piccadilly Gardens is set to completely transform the deteriorating region with improved lighting, new raised grassed areas and planting, a children’s play area and the transformation of the Pavilion Wall.
Whilst the Circle Square development started back in 2018, 2022 looks to be its most important year yet as the area finally becomes the bustling new neighbourhood it set out to be. Circle Square incorporates 1,700 new homes, 1.2 million sq ft of workspace and over 100,000 sq ft of retail and leisure space around a stunning green space.
MediaCityUK Phase 2 Whilst just outside of Manchester, the second phase of the MediaCityUK development will massively benefit the economy within the city and its surrounding areas. The £1bn expansion is set to double the size of the existing MediaCityUK development, adding 211,000m worth of office space, restaurants, parks and residential units.
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Manchester hotspots Ancoats Ancoats is one of the most exciting and up-andcoming areas in the centre of Manchester. Once the centre of the UK’s industrial revolution, the region has been transformed thanks to substantial investment to become one of the UK’s most sought-after neighbourhoods. Demand in Ancoats has soared, with the region named by Time Out as the 20th ‘coolest place to live in the world’, a testament to the area’s regeneration and a massive boost for the property market in the area.
New Islington New Islington is home to a plethora of new homes and amenities as well as a beautifully serene marina offering tranquil city living, all within walking distance to Manchester city centre. The regeneration in the area has seen New Islington’s popularity and investment potential soar in recent times as the neighbourhood continues its exponential growth and solidifies its status as one of the most desirable places in the UK to both work and live.
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Deansgate Deansgate is one of the most desirable regions to live in Manchester. Home to the likes of the towering Hilton Hotel, the stunning John Rylands Library and the Deansgate Locks, the area has transformed into one of the city’s leading property hotspots. Deansgate features excellent transport links, thriving bars and restaurants, and some beautiful architecture that has seen tenant demand skyrocket in the area to offer an excellent property investment location.
Salford Quays Previously the site of Manchester Docks, Salford Quays has become one of the UK’s earliest and largest urban regeneration projects following the closure of the dockyards in 1982. Fast forward to the modern day and Salford Quays features iconic landmarks such as The Lowry, The Imperial War Museum, Manchester United’s football ground Old Trafford and MediaCityUK – all contributing to a booming economy and excellent property market.
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Life in Manchester Manchester is consistently ranked as one of the best places to live in the UK, and it’s clear to see why. The city has a rich cultural heritage, having been one of the most prominent contributors to the UK’s cultural scene in the form of notable music icons and stars of TV and film, to visual artists. This cultural heritage remains ever present in the city today to create an extremely creative and welcoming environment for people to live and work.
The city was actually named as the 3rd best city in the entire world in 2021 and the best in the UK by Time Out, whilst also being voted top for ‘nightlife’, ‘creativity’, ‘community spirit’, ‘friendliness’ and ‘getting to know your neighbours’. There are countless things to do in the city centre. From shopping at the Arndale to visiting the most up-and-coming restaurants and bars in Ancoats and the Northern Quarter, or even taking in a show or a gig at one of the city’s countless theatres and arena – there really is something for everyone to enjoy.
3rd
Manchester was named as 3rd best city in the entire world by Time Out Avison Young, Q2 2022
71%
71% of people described Manchester as creative in the latest Time Out index Time Out, 2021
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Transport Manchester is one of the most well-connected cities in the UK, with numerous public transport options available to get you in and around the city so, no matter where you are in the region, you should have no issue getting around. Manchester Metrolink, the city’s local tram system, reaches various parts of Greater Manchester and the city’s two main railway stations, Manchester Piccadilly and Manchester Victoria, have direct links to the whole of the UK. The next few years are set to be transformative for the Manchester public transport network, with the Manchester bus network coming back under public control, £1bn worth of investment being used to deliver a carbon-neutral network and the introduction of the HS2 network that will put Manchester just over an hour away from London.
5.6m
There are more than 5.6 million journeys made across Greater Manchester each day TFGM, 2022
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Knight Knox is a market-leading property consultancy that specialises in the sale of buy-to-let properties in city centre locations throughout the UK.
Greater Manchester developments
With nearly 20 years of experience under our belts, we are perfectly positioned to give our clients property investment advice that is perfectly tailored to their needs and ensure that the property investment process is as simple as possible. We specialise in both residential and student property and have sold over 11,000 properties to 5,500 individual buyers all over the world. We always strive to give our clients the best advice and ensure that they see the best possible returns on their investments.
X1 Manchester Waters Manchester
Barrel Yard Manchester
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The Queen’s Brewery Manchester
Meadow Mill Stockport
The Interchange Salford
X1 Media City Salford Quays
Buy-to-let Property Guide Manchester
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Website: www.knightknox.com Telephone: (0)161 772 1370 Email: info@knightknox.com
The information contained within this document is correct at the time of printing (April 2022). Any images featured in this document are a guideline and are for representation only; furthermore, any completion dates outlined in this document are correct at the time of publication but may be subject to change. 2022-04_v1