Property investors, landlords and owner-occupiers should all be looking to the north for the best property investment opportunities for the future.
Manchester will lead UK cities with the most significant increase in sales prices and rental growth over the next five years. This is according to JLL’s recent Living With 2020 Vision Regional Forecasts Report.
Across the UK housing industry, the report says there will be stronger price growth and more transactions in 2021-2022. This is partly due to the greater political and economic certainty we saw at the start of 2020.
From the end of 2020 through 2024, Greater London, the north-west of England and the east will see the most growth, says the report. There, property sales prices could rise by 17%, 16.5% and 16.4%, respectively. Regional cities in particular could see some of the most significant amount of growth.
Manchester leads the way
JLL believes Manchester will see the largest increase in sales prices over the next five years, up by 17.1%. This is markedly higher than the national average of 14.8%. The report also predicts Manchester will rank highest for rental growth at a 16.5% increase.
The city’s growing economy and rising population are big reasons behind this growth. A Stone Real Estate report recently named Greater Manchester as the most lucrative new-build property hotspot in the UK. The north-western area has seen a huge amount of growth and development in the last few years. Nevertheless, the city’s property market is set for another record year with rafts of new developments due to complete.
As Greater Manchester’s population continues to rise significantly, the city region still has room for growth in the rental sector and property market. Manchester is now classed as the best city in Europe for business in 2020/2021, according to a Financial Times Report. This means more businesses and young professionals could be on their way to the city.
As more people come to Manchester, demand in the rental market is likely to increase. This will continue to provide lucrative opportunities for landlords and investors in the coming years.
Other property hotspots in the north of England
Leeds and Liverpool are also continuing to evolve as strong UK property investment hotspots. Both areas have a number of developments currently in the pipeline. Property sales prices in Liverpool could increase by 13.1% over the next five years, while rental growth could rise by 14.8%, says JLL.
Recently named the most profitable city to become a landlord in the north of England, Leeds is expected to see prices rise by 13.7% and rental growth by 14.2%. Both of the cities’ economies and populations are likely to see significant growth in the next couple of years. As a result, forecasters expect a boom in the regions’ property markets, bringing forward rewarding investment opportunities.
As numerous cities in the Northern Powerhouse are set for an exciting future with a significant amount of development and regeneration in the works, the property markets in the north will continue to thrive. And the region is likely to be home to a plethora of profitable investment choices for investors and landlords across the next five years.
Credit Source: Kaylene Isherwood