GREATER MANCHESTER PROPERTY GUIDE 2016/2017
GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
EMBRACING THE BUY-TO-LET MARKET In 2015, the number of rented households in England hit a record level of five million following rapid growth of the country’s buy-to-let market.
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hen it comes to investment, it’s now undeniable that property is the way to go. With other asset classes historically prone to volatility and generating low yields, property has continuously outperformed the likes of stocks and shares, amongst others, for more than a decade, and increasing numbers of investors are turning to the buy-to-let market to generate tangible income. The lucrative ‘bricks and mortar’ option has been a popular one for investors for some time now, promising high returns at marginal risk. Property is also versatile and can work to suit different budgets, requirements and future plans, so it’s no surprise that, despite uncertain economic times, buy-to-let upholds its reputation as one of the most reliable and profitable investments currently on the market. This is especially true in regional zones, such as Greater Manchester, as confidence in the capital declines.
What’s more, buy-to-let is a two-tiered investment strategy - investors are able to generate rental income, which will naturally grow over the years, whilst
The number of rental households in the UK is now over 5.7 million Pricewaterhousecoopers
benefitting from capital appreciation when the time comes to sell. As such, the market has experienced rising demand from both well-established residential investors looking to boost
their portfolio and new entrants into the market seeking to subsidise their income. The number of rented households in the UK is now over 5.7 million, a figure that’s expected to reach 7.2 million by 2025 - the equivalent of one in four homes in England. The latest figures value the stock in the Private Rented Sector (PRS) at £1.29 trillion, surpassing the value of mortgaged owner-occupier stock for the first time. As house prices continue to rise and more people become reliant on the PRS, owning property for the purpose of renting it out will continue to prove a highly popular and lucrative option in both the short and long-term. Of course, getting the most out of buyto-let hinges on a strong knowledge of tenant requirements and keeping abreast of industry forecasts. However, if you invest in the right property in the right location, the potential to generate impressive returns is unparalleled.
£ 4.4% The percentage increase of jobs expected in Salford over the next 4 years
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£1.29 trillion
2.2%
The projected value of the Private Rental Sector, surpassing mortgaged owner-occupier stock
The percentage that Greater Manchester’s GDP is expected to rise by annually until 2020
WHY GREATER MANCHESTER?
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reater Manchester is a county in the North West of England and is one of the largest metropolitan areas in the UK, housing 2.8 million people. The area consists of 10 metropolitan boroughs: Bolton, Bury, Oldham, Rochdale, Tameside, Stockport, Trafford, Wigan, Manchester and Salford.
Greater Manchester has long been defined by Manchester, its standout city with over half a million inhabitants, but recently the focus has shifted to also incorporate Salford, once Manchester’s lesser-known neighbour, but now a city growing in popularity and renown both on the national and international stage.
• Greater Manchester is the UK’s main centre for business, financial and professional services outside of London, employing over 324,000 people and generating £15.5billion of GVA annually (Greater Manchester Economic Forecasting Model (GMFM))
• The level of private renting across Greater Manchester increased by over 62% between 2001 and 2011, now accounting for 16% of all households across the region (Land Registry)
• Manchester is the UK’s third most popular city for international visitors after London and Edinburgh, welcoming one million international leisure tourists per year (Visit Manchester) LE DA
CH
RO BOLTON
BURY
WI
GA N
OLDHAM
RD
FO
E
MA N
D
OR
FF
A TR
TAMESID
CH
EST
ER
SAL
• Greater Manchester has the largest functional economic area outside London, with a GVA of £56billion, accounting for nearly 40% of GVA in the North West (New Economy) • Greater Manchester has the largest travel-to-work area of any conurbation in the UK outside of London, with seven million people living within one hour’s drive of the city centre (ONS)
STOCKPORT
• Around 110,000 additional jobs are forecast within Greater Manchester between 2014 and 2024, with GVA expected to rise by 2.8% per year over the same period (GMFM) • Greater Manchester is the strongest performer for foreign direct investment (FDI) outside London, with the region attracting over 400 inward investment projects between 2009 and 2013 (MIDAS) • 32% of Greater Manchester’s working-age population (equivalent to over half a million people) are educated to degree level (Skills Funding Agency Datacube)
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GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
INVESTING IN GREATER MANCHESTER It is expected that Greater Manchester will continue to occupy a top spot on the list of property investment destinations in Europe over the next 10 years and beyond. The relative affordability, together with excellent yield and appreciation prospects, makes Greater Manchester an ideal investment opportunity for those deterred by lower yields and a detachment between earning potential and property costs in the capital. In contrast, Manchester and Salford offer a more favourable balance between these elements for buyers and tenants alike. The county has experienced a huge boom in popularity over recent years, due to both its existing assets and those afforded to it by significant investment in its future. Such plans to enhance the area’s infrastructure and amenities have bolstered the appetite for city centre living across the region and played a huge part in boosting tenant footfall. Greater Manchester’s economy is thriving and, according to the JLL City
Greater Manchester
Momentum Index, its GDP growth is predicted to continue to expand at a rate of 2.2 per cent annually until 2020 - outperforming the rest of the UK. The county’s principal city has also been ranked as the ninth bestperforming city in Europe. This is thanks to the strength of the area’s property market as investors look outside of London for returns, as well as substantial progression across a range of industries, including the media and creative sector and financial and
9th best performing city in Europe JLL City Momentum Index
business services. Being home to the University of Manchester, which has the biggest student community in the UK, as well as Manchester Metropolitan University and the University of Salford, also boosts the region’s already favourable economic position. A huge driver for interest in the area has been the introduction of employment hubs like Salford’s MediaCityUK, which has shone a global spotlight on this area of the UK and inspired huge corporations such as the BBC to relocate from the South. As such, employment is forecast to skyrocket in the area, with the number of jobs in Salford set to rise by 4.9 per cent in the four years leading up to 2020, while Greater Manchester’s overall employment is expected to increase by three per cent during the same period. Facilitating this, and a further driver for Greater Manchester’s economic growth, is the development of its infrastructure and connectivity. Not only have improvements to the area’s internal transport systems been
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made, such as the expansion of the Metrolink and the introduction of new bus routes, but access to other regions and countries has never been better either. Manchester Airport is the busiest outside of London and new routes are being added frequently. Meanwhile, the Government’s plans for the groundbreaking HS2 rail service - a high-speed rail network launched as part of the Northern Powerhouse initiative - will create more efficient links to other regional cities such as Leeds, Sheffield and Liverpool, as well as the capital.
every home game. As a result of the many positive advances the area is undergoing, there has been an astounding increase in the amount of residential property coming to market. You only have to look at Greater Manchester’s skyline to notice the resurgent strength of the region’s property market. Deloitte’s regional crane surveys for Manchester have found that the total number of residential units under construction has increased by over 1,000 per cent in the last five years.
However, music and celebrations aren’t the only things that Greater Manchester has to offer – the football grounds of Manchester United and Manchester City continue to draw in international audiences. Manchester United’s Old Trafford stadium sees an average attendance of 72,900, while over 54,000 fans flock to Manchester City’s Etihad Stadium in East Manchester for
As Greater Manchester is set to enjoy soaring employment prospects, vastly improved inter-city transport links and further injections into its recreational offering, the area is destined to remain a firm favourite among both landlords and tenants.
MANCHESTER:
Number of residential apartments
Residential development pipeline (2010-2017)
2,500
2,000
1,500
1,000
500 0 2010
2011
Completed
2012
2013
2014
Under-construction
2015
2016
2017
2002 - 2015 Average
Source: Deloitte Manchester Crane Survey 2016
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GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
GREATER MANCHESTER: CULTURE AT ITS CORE The promising employment prospects and competitive rental prices aren’t the only things attracting tenants to Greater Manchester; with an incredibly rich cultural offering, the county finds itself a destination for people who want to strike the all-important balance between work and play – and it’s no surprise that Manchester was named 2016’s best UK city to live in.
MUSIC
FESTIVALS
MUESEUMS & ART
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he region is renowned for its music scene, being the home of a range of internationally celebrated artists, from Oasis and The Stone Roses to Joy Division and Take That. It also boasts a selection of legendary live music venues, including Manchester Arena, Manchester Apollo and The Ritz, as well as the famous alternative scene that Manchester’s Northern Quarter has to offer. As a result, Manchester remains an unmissable stop on the tours of some of the world’s top musicians.
SPORT
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he football stadiums of Manchester United and Manchester City continue to draw in international audiences year-on-year. Manchester United’s Old Trafford stadium sees an average attendance of 72,900, while over 54,000 fans flock to Manchester City’s Etihad Stadium in East Manchester for every home game.
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he county also holds some spectacular festivals and cultural events, which draw global crowds to the cities in their thousands. For example, attendance at
The UK’s best Christmas markets the Caribbean Carnival of Manchester and Manchester Pride is higher than ever – the carnival now commands a crowd of over 20,000 people, while Manchester Pride experiences a staggering 170,000 individual visits over its four days. Meanwhile, Manchester International Festival has even been described by The New Yorker as “probably the most radical and important arts festival today” and when it comes to the winter months, Manchester’s Christmas markets are something to behold and are continually voted the UK’s best Christmas markets.
hen it comes to educational pursuits, Greater Manchester hosts a raft of awardwinning museums and galleries to suit all tastes. Deansgate’s Museum of Science and Industry reflects the area’s deep-rooted technological history and has experienced yearon-year increases in visitor numbers due to its exciting programme of demonstrations and exhibitions. Meanwhile, the Imperial War Museum in Trafford remains a firm favourite amongst both visitors and locals. For those keen to explore the county’s artistic heritage, there’s also the equally impressive Manchester Art Gallery or Whitworth Gallery, which recently underwent a £15 million redevelopment. Greater Manchester’s grounding in the arts is also reflected in the number of famous theatres it is home to. Manchester’s Palace Theatre, Manchester Opera House and the Royal Exchange continue to host sell-out productions, while The Lowry in Salford Quays brings together a variety of performing and visual arts under one roof. More recently, the £25 million HOME, which houses a 500seat theatre, a flexible studio space and five cinema screens, opened its doors in 2015 and is already counted among the country’s top arts centres.
SHOPPING
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or those with a spending habit, Greater Manchester has a raft of shopping opportunities. intu Trafford Centre offers a wide range of shops and department stores within its 2.2million sq ft baroque-inspired walls, as does Manchester’s bustling city centre, complete with high street favourites, designer boutiques and a thriving vintage scene. A little further out from the city centre, Bury has recently been heralded the thirdbest shopping destination in Greater Manchester, proving that there are ample opportunities for retail therapy away from the retail giants of The Arndale and The Trafford Centre.
FOOD, DRINK & NIGHTLIFE
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worthy competitor to London when it comes to restaurants and bars, Greater Manchester offers an increasingly diverse food and drink scene. Must-go eateries include The French at The Midland Hotel, Rio Ferdinand’s Rosso and Aiden Byrne’s Manchester House, or for a spot of culinary globe-trotting, there’s the famous Curry Mile in Rusholme and Chinatown in Manchester city centre. Meanwhile, Northern Quarter, with its trendy bars and cafe culture, offers a more casual dining and drinking experience.
the city centre alone has 14 Michelin Guide-recommended restaurants as of 2016. However, not only does Manchester offer outstanding restaurants - with more exciting openings in the pipeline - but there are ample opportunities for exceptional food and drink outside the city centre too. Bolton’s Food & Drink Festival has become well-known of late, attracting foodies in their thousands, while Altrincham Market has been voted the best indoor market
14 Michelin Guide restaurants
in the UK by Observer Food Monthly. If it’s fine dining you are looking for, The River Restaurant in Salford’s five-star
Lowry Hotel offers luxury in abundance, as does the awardwinning Nutters Restaurant in Rochdale, named after its celebrity chef namesake Andrew Nutter. Didsbury is also flying the flag for high-quality culinary establishments, with Greens - a vegetarian restaurant owned by Simon Rimmer - leading the way. Greater Manchester’s flourishing food scene is just one feather in its cap. Manchester was recently voted the UK’s trendiest city beating the likes of London and Brighton, a tribute to the area’s young and growing population. To accommodate such a vibrant and youthful populace, Greater Manchester has a plethora of bars and clubs to enjoy. From Spinningfields and Deansgate Locks to the Gay Village and Northern Quarter - as well as the popular Warehouse Project Manchester’s nightlife is second to none and sees residents of all the county’s boroughs flocking to the centre, as well as party-goers from all over the UK.
If you’re looking for a more traditional taste of the city, look no further than the Mercure Hotel’s ‘Manchester Afternoon Tea’ which celebrates all things Mancunian, with food inspired by produce made in Greater Manchester. Tuck into culinary wares such as Coronation (Street) Chicken, Cheshire cheese with Boddington’s Chutney, Bury black pudding scotch eggs (complete with a Kellogg’s cornflake crumb), the legendary Manchester Tart, homemade Jaffa Cakes, and a scrumptious Vimto trifle. Such is Manchester’s culinary offering,
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GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
MANCHESTER HOTSPOTS The obvious investment capital of Greater Manchester is the city of Manchester itself. Since being named the UK’s number one buy-to-let hotspot in 2015, the city continues to be extremely popular among investors as it offers some of the highest yields in the country. Thanks to prolific growth predictions, more and more money is flooding into the city. Manchester was named the top northern city in a recent growth potential index, reflecting its rising population, increasing appeal as a business location and, of course, the strong performance of its property sector. Such predictions have led to substantial domestic and foreign investment into the city as demand grows, seeing plans granted for new residential schemes across all
areas of the city, from Ancoats and Deansgate to the newly formed Angel Meadows district. The sheer volume of construction activity mirrors the buzz within Manchester’s buy-to-let scene and is undoubtedly one of the greatest contributors to the record valuation of the UK buy-to-let market nationwide.
Greater Manchester is home to over 60% more 25 to 29-year-old tenants than anywhere else in the UK
Spinningfields
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pinningfields, a purposebuilt business, retail and residential centre, has now become one of the most iconic destinations in Manchester. An area of the city centre that was once nondescript and underutilised has now become one of the city’s focal points, conceptualised in 1997 by Allied London Properties. With a capital injection of £1.5 billion, the initial project was created throughout the 2000s, which saw the creation of 20 new and iconic buildings (most of them glass-fronted office and commercial spaces) totalling around 430,000 sqm. By 2010, over 16,000 people were employed in Spinningfields, with the area accounting for over a third of Manchester’s prime office
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60%
space. Such was the success and gravitas of Spinningfields that the area has since become the nucleus of Manchester’s financial and professional services industries, with the Financial Times putting the area on a par with London’s Canary Wharf and Paris’s La Défense thanks to anchor tenants like Barclays, Deloitte, HSBC and Grant Thornton International.
“Spinningfields is very much the new business district in Manchester; (it’s) an excellent site to locate and grow our business” Pinset Masons (law firm), Spinningfields Tenant
SALFORD HOTSPOTS Manchester’s neighbouring city of Salford also continues to grow in prestige and popularity. Thanks to the prodigious success of MediaCityUK - which is only set to expand, with a further 200 acres earmarked for future development - there is an influx of people flocking to the area. Not only do the employment prospects MediaCityUK brings continue to encourage tenants, but the leisure amenities situated on Salford Quays, such as The Lowry Outlet, the Lowry Theatre, a cinema and a plethora of bars and restaurants, also serve to drive footfall and development activity in the area. As the number of tenants looking for property in and around the city increases, so do the number of landlords looking to capitalise on this growth.
Over the last 10 years, Salford house prices have grown by over 10 per cent. Demand for rental accommodation has skyrocketed in recent years, as has the number of landlords looking to take advantage of Salford’s impressive yields. Coupled with the fact that growth in both house and rental prices shows no sign of slowing down, this makes Salford a superb long-term investment opportunity.
No.1 Greater Manchester has been named the “No.1 Buy-to-Let Hotspot in the UK”
MediaCityUK
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household name, MediaCityUK has become the poster-child for investment-led regeneration in recent years. As little as 15 years ago, the Salford Quays waterfront was all but derelict after the closure of the Manchester Ship Canal in 1985. However, the area had vast untold potential, which was eventually realised by Peel Holdings through their vision for MediaCityUK, Europe’s first purpose-built media hub. Work began on MediaCityUK in 2007 after securing a £1 billion investment, but the area truly thrived after the announcement that the BBC, and later, rival broadcaster ITV, would open regional bases in the newly developed site.
Fast-forward to 2016 and area is unrecognisable. Glass-fronted towers and bespoke multi-millionpound broadcasting studios rub shoulders with high-end bars and restaurants across the site’s 36 acres, as well as an outdoor piazza larger than London’s Trafalgar Square. BBC and ITV are MediaCityUK’s anchor tenants but have now been joined by over 250 businesses, most of which are big players in the Tech, Media and Telecommunications (TMT) sector. MediaCityUK has rightfully earned its place as one of Salford’s largest and most successful investments, and plans are afoot to extend MediaCityUK by 455 per cent over the next decade to fill its allotted 200 acres.
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GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
A COUNTY OF OPPORTUNITIES Investment in Greater Manchester is not just limited to the prospering cities of Manchester and Salford. New developments continue to pop up across all eight of the additional metropolitan boroughs as confidence spreads to the outlying towns. As a result, these areas are seeing vast improvements in infrastructure and amenities, and capital appreciation prospects are soaring, highlighting the appeal of such a dynamic region.
STOCKPORT
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tockport has had significant investment poured into it and is set to undergo an exciting regeneration programme over the next decade. Developments in the area have triggered plans to rejuvenate public transport links, with a new train
station and tram line set to join the long-standing bus station, boosting accessibility to and from the area. This, along with its enviable access to the airport and motorway, signifies why Stockport is quickly becoming a key location for future tenants and investors.
BOLTON
B
olton joins Stockport on the list of up-and-coming hotspots, with the former mill town seeing a number of public and private sector investor developments over the last few years. Despite economic austerity the regeneration of Bolton has continued, with ÂŁ880 million of investment ploughed into the town in recent years.
Bolton has also established itself as a key economic force in the region, with large organisations such as RBS, AXA and Warburtons opting to base their head offices there. The generation of noteworthy 5.3 per cent yields shows that this borough is becoming a major destination for strategic investment.
BURY
T
o the east of Bolton lies the cultural hub of Bury, home to the East Lancashire railway and the famous Bury market. Boasting a Metrolink station connecting it to central Manchester, Bury also enjoys ease of access to an abundance of vast open
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space and countryside, providing the perfect setting for character properties. The borough is a hospitable refuge away from the bustling cities and a highly desirable location in which to live, work and study, making it ideal for investors and residents alike.
2.5 million The population of Greater Manchester (spread across its 8 boroughs and 2 cities)
OLDHAM
O
ldham, another burgeoning hotspot in Greater Manchester, has seen plenty of redevelopment during the last few years. This includes major investment facilitating a new Metrolink interchange, as well as plans for hundreds of new homes and extensive new retail space. The low cost of properties in this
borough means it delivers good yields for investors with smaller budgets, averaging a solid 5.5 per cent. Oldham’s housing stock and educational facilities have seen a considerable amount of investment over the past couple of years, reinforcing its potential for property appreciation moving forward.
ROCHDALE
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eighbouring Oldham, the borough of Rochdale also boasts excellent infrastructure and maintains a high amount of inward investment, having attracted over £200 million in the last four years. Its thriving
towns such as Middleton and Heywood, top schools and colleges and first-rate access to three major motorways make Rochdale an ideal setting for property investment.
TAMESIDE
T
ameside offers the best of both rural and urban living thanks to its position between Manchester and the Peak District. Ashton-underLyne, Tameside’s central market town, provides excellent transport links to
and from the borough and has seen a growing number of apartments. This, along with substantial investment into key employment sites in recent years, reflects the property industry’s confidence in Tameside.
TRAFFORD
O
ften described as the enterprise capital of Manchester, Trafford is home to the largest industrial estate in Europe - Trafford Park. The borough of Trafford also benefits from an extensive rail network and the convenience of connections to key motorways, while its position between
Manchester and Salford provides express access to the region’s cities. The town centres of Altrincham and Sale are soon to benefit from mass regeneration plans, with new retail, leisure and residential space beginning development in 2016.
WIGAN
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igan, one of the largest of the metropolitan boroughs by population, has convenient links to the Greater Manchester transport network but also benefits from easy access to neighbouring Liverpool. Amenities and infrastructure in the area
continue to be developed, including regeneration plans for the town centre, Wigan pier and Leigh waterway. It offers reasonably priced properties and attractive rental yields for investors, which currently stand at 5.2 percent.
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GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
RETURN ON INVESTMENT The high cost of buying property, coupled with changing generational attitudes towards homeownership, has seen a substantial rise in demand for rental accommodation in the UK. As a result, an increasing number of investors are turning to the buy-to-let market as they acknowledge the earning potential on offer.
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hen it comes to location, London has traditionally been regarded as the most profitable and desirable place in which to invest. However, in recent times, soaring house prices in and around the capital are not being mirrored by rental increases, leading to reduced investor returns. Regional cities, on the other hand, present a more fruitful option for would-be landlords. House prices do continue to rise – with the average price in the city of Manchester having increased by 27 per cent over the last 10 years – which makes property in Greater Manchester a far more lucrative investment opportunity. As such, investors can make their capital go much further and enjoy higher yields.
It’s not just rental income that investors in Greater Manchester stand to benefit from, though. Property is a naturally appreciating commodity - between 2000 and 2015, property prices increased by 84 per cent in the UK and the average house price in Greater Manchester is projected to reach £316,920 by 2030. While first-time buyers will find it even more difficult to get their foot on the housing ladder, forward-thinking investors will reap the rewards of substantial capital gains should they wish to sell up in the future. Key buy-to-let areas in Greater Manchester are Salford and Manchester, two cities which have been named UK buy-to-let hotspots by HSBC.
2017
2018
2019
2020
Manchester
5.5
5.0
4.5
4.0
3.5
UK
5.0
4.5
4.5
4.0
3.0
2016
2017
2018
2019
2020
Manchester
5.0
4.5
4.0
4.0
3.5
UK
4.5
4.0
3.5
3.5
3.0
Rental Growth (% pa)
Source: JLL, 2016
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Average house prices in Greater Manchester have increased by 27% over the past 10 years
£316,920 The projected average house price in Greater Manchester by 2030
2016
House Price Growth (% pa)
27%
1,000% The growth in residential construction in Greater Manchester over the last 5 years
THE CAPITAL OF THE NORTH Ever since George Osborne coined the phrase ‘Northern Powerhouse’ in 2014 to recognise the need for a northern answer to London’s dominion, the city of Manchester has been leading the way.
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cting as the central force behind the Conservative government’s initiative, Manchester city centre is now being dubbed ‘the Capital of the North’ - running alongside its unofficial accolade of ‘the UK’s Second City’ - and has been instrumental in driving forward the social and economic progress that is already emerging across the North of England. The Northern Powerhouse, with its focus on transport, devolving powers and investing in skills and education to boost the region’s economy, has attracted a global audience and, with Manchester at its forefront, there has never been a better time for investors to capitalise on the area’s tremendous success. The likes of MediaCityUK in Salford
have shown the true potential of Greater Manchester as a place to live, work and invest, and the area will continue to flourish thanks to an influx of inward investment. Continued project delivery throughout Greater Manchester is no doubt the glue that holds the Northern Powerhouse together, and improvements to infrastructure are a key motivator for this. If the Government’s aims are to be realised, it’s vital that Greater Manchester’s networks are enhanced, which begins with improving travel links in and around the region. Should the proposed plans for HS2 become a reality, it will transform the area’s property market. The one-hour journey time between Manchester
and London will open up Greater Manchester as a time and cost-effective place to settle down for those who seek regular and efficient access to London for work or leisure, but who don’t wish to live in the capital. It will even be entirely plausible for tenants to live in Salford or Manchester, avoiding London’s astronomical living costs, but commute daily to the capital for work. Meanwhile, Greater Manchester’s devolution deal - affectionately named ‘Devo Manc’ - will see the region gain heightened power of autonomy over its economic budgets as part of the Northern Powerhouse. This in itself will bring untold potential to Greater Manchester, enabling it to tackle issues more directly and therefore make improvements more efficiently across the region.
TIMELINE OF THE NORTHERN POWERHOUSE: June 2014
August 2014
November 2014
February 2015
March 2016
Greater Manchester is the first English region to control its own £6 billion health and social care budget.
Confirmation of HS3, the high-speed rail system between Manchester and Leeds with work expected to commence in 2017.
£ Former Chancellor George Osborne announces his vision for the “Northern Powerhouse”.
A £15 billion transportation infrastructure plan put in place, called One North.
Announcement that the Greater Manchester Combined Authority will receive a £1 billion devolution package.
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GREATER MANCHESTER PROPERTY GUIDE - 2016/2017
THE RIGHT PROPERTY While investing in buy-to-let is no doubt a practical and established route to financial security, for first-time investors especially it can be a confusing enterprise, namely knowing where to invest and which type of property to invest in.
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ne option that continues to grow in popularity is the prospect of buying off-plan, as investors recognise its short- and longterm benefits. The major advantage of buying off-plan is that such properties offer significantly better value than established products on the market, yet by the time they’re completed they can be worth tens of thousands of pounds more than they were when originally sold. Additionally, being new builds, off-plan properties are less likely to suffer maintenance issues and tend to feature modern décor as well as unused fixtures and furnishings, making them more attractive to the end tenant both before and throughout their tenancy. In terms of location, it makes sense to seek out the areas within Greater Manchester that are earmarked for regeneration and keep an eye on new transport links. For example, Metrolink services are spreading, so it’s worth scouting out development activity around potential new tram stations in areas such as Salford and Stockport as they’re likely to continue to grow in popularity. The opening of new shops, restaurants and bars - particularly upmarket establishments that indicate gentrification of the area - is also a good sign that property prices, and therefore rents, are likely to rocket. Another crucial decision you need to make is who your target tenant is - while some landlords would only consider renting their property to professionals, others prefer to explore the student
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accommodation route. Each has its benefits and it’s worth considering these carefully. When it comes to investing in student accommodation, Manchester has the highest student population of any city in Europe, so you’ll never be short of tenants. What’s more, if you choose a property close to a university campus, there will be an even larger pool of potential tenants to choose from. Despite this, it tends to be city centre apartments aimed at young professionals that reap the best rewards for landlords. Manchester is home to 60 per cent more 25 to 29-yearolds - those most likely to rent - than anywhere else in the UK. With job seekers arriving in their droves to take advantage of the employment prospects Greater Manchester has to offer, it’s this demographic that most residential property developers have in mind when designing their products and that investors, in turn, are seizing upon to maximise their earning potential. Such tenants want more from their property so, where possible, look for luxury, high-spec apartments that offer better amenities such as on-site gyms and concierge services to put you in the best position to garner a healthy profit. To find out more about investing in Greater Manchester, call Knight Knox on 0161 772 1370 or email info@knightknox.com.
KNIGHT KNOX Knight Knox is a leading provider of buy-to-let developments to the private investor market. Specialists at sourcing investment opportunities, in both new-build residences and high-end refurbishment projects, the company boasts an impressive portfolio of both completed and future stock testament to the quality of the properties it brings to market.
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he team works in partnership with four highly experienced developers – X1, Fortis Developments, Forshaw Land & Property Group and Crossbow. Nurturing relationships with these developers has allowed Knight Knox to build a track record of over 70 successful buy-to-let developments
across the UK, including prime newbuild, residential buy-to-let apartments and high-yielding, boutique student accommodation projects in major cities throughout the UK. Knight Knox’s diverse range of properties has enabled it to offer a wide range of opportunities to suit all investment needs.
70 Total number of UK projects launched
49 Number of completed and tenanted developments
“Overall, a truly remarkable service” “The whole process from the initial reservation to the exchange of contracts up to the final legal completion is guided by Knight Knox’s very friendly, knowledgeable and trustworthy staff, who always maintains a great sense of professionalism throughout this course. Any queries or uncertainties are answered almost instantly and they do their utmost to accommodate the clients’ needs. Overall, a truly remarkable service and I know for sure that all my future investments will be through Knight Knox.” Dr. Nishil Haria
£740+ MILLION
Total value of all UK projects launched
As featured in:
Figures correct at time of print (September 2016)
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Knight Knox Quay West at MediaCityUK Manchester M17 1HH United Kingdom +44 (0)161 772 1370 www.knightknox.com This report has been created by Knight Knox using information that is correct at the time of print (September 2016). The report should be used as a guideline only, and should not be used in lieu of financial advice from an IFA or similar qualified financial professional. Knight Knox will not be liable for any financial loss, cost or expense incurred or arising by reason of any person using or relying on information in this publication. 1608-V1