Buoyant housing market in Manchester city centre
Greg Davies was discussing the Manchester market with Property Investor News as part of their Investment Market Report on Manchester.
Manchester's sales market
Greg cited the strong employment market as a key contributing factor:
"The sales market continues to be buoyant with strong demand for property whthin the city centre and surrounding areas supported, in part, by the fact that Manchester is playing an important role in the Northern Powerhouse strategy and, as a result, has already attracted major employers to the area. Company headquarters include Co-Operative, Misguided, Kellogg's, AstraZeneca and there are also plans to expand MediaCityUK at Salford Quays - which enhances employment opportunities and should bring further demand for housing."
As to capital values and demand trends Davies said: "In terms of house prices, they increased steadliy throughout 2017 with the latest House Price Index by our parent company, LSL Property Services, highlighting that over the year to the end of March 2018 the average property price has risen by 6.2% to £197,131.
"Demand is widespread with an average price for a four bedroomed family property outside the city centre in areas such as Sale in south Manchester being around £425,000 and for a two bedroom flat n the centre expected to be on the market at around £250,000."
Manchester's lettings market
Davies also discussed the lettings market in the city, suggesting increasing supply is perhaps impacting rents marginally: "Demand continues to be very high in the lettings market in Manchester although, with supply increasing over the last 12 months, it has been more important for landlords to market their properties at an appropriate and realistic pricing to enhance rental opportunities."
Greg compared rent levels in the city centre with those in Manchester's suburbs: "Demand is particularly high in the city centre where approximately a third of homes are rental properties and, as a result, landlords can expect to achieve, for a two bedroom apartment with a parking space within the city centre, approximately £900pcm. Outside of the city centre the rent for a similar property would be approximately £800pcm with popular areas being Didsbury in south Manchester."