Manchester’s housing market continued to perform excellently in 2020, despite obvious challenges, and all the signs point to property prices and rental values continuing to climb in the city over the course of 2021. This is particularly the case for the luxury city centre market which is more popular and in-demand than ever.
Whether you are a buy to let investor or a homebuyer, you can continue to feel confident in the Manchester housing market.
The latest UK Cities House Price Index from Hometrack shows that overall demand at the end of 2020 was 33% higher than it was at the same time in 2019. When looking at the year as a whole, demand for homes in the UK saw a 40% annual increase in 2020.
House price growth is just as strong, according to the same Index. National property value inflation reached an average of 3.9% over the year, with various cities exceeding even that. Naturally, Manchester was one such city, with annual house price growth being recorded at 5.9% - demonstrating strength on its own terms, and also when compared to London which saw growth of just 2.8% over the same time period.
We have previously reported that house price growth in Manchester is twice that seen in London, but it seems that gap continues to widen over time. Furthermore, the sheer amount of property development either underway or in the pipeline in Manchester ensures that this is no short-term trend - we can expect to see house price growth in Manchester far exceed that found in other cities. This is particularly the case in up and coming city centre areas such as Piccadilly which are seeing huge regeneration schemes begin to bear fruit.
Thousands of apartments are either scheduled to be completed in 2021, or their construction programmes will begin. As noted by the Manchester Evening News, most of these will be in the highest demand areas - something which will further push prices up, increasing capital gains for anyone buying off-plan property in Manchester.
However, even with all these extra apartments, there will not be enough to meet population growth in the city centre. Manchester City Council has estimated in its State of the City Report that the city centre population will top 100,000 by 2025 – equating to more than 5,000 people per year moving to the heart of Manchester.
This is an ideal time to buy property in Manchester and take advantage of this upcoming capital appreciation. By purchasing an off-plan property and locking in a below-market rate today, you can secure the greatest possible returns.
Looking for more information about purchasing an off plan property in Manchester in 2021? Download our Manchester Investment Guide to find out more about what makes Manchester so special, and why the city's property market is set for another bumper year.