Manchester is top of the new Hometrack list for house price growth over the last 12 months registering an 8.8% year-on-year rise, compared to an average of 6.4% in other UK cities.
It’s part of a larger trend where house prices and sales volumes have fallen flat in high-value cities such as London, Oxford and Cambridge after strong growth. By contrast prices in regional cities outside of southern England are growing and sales volumes are rising.
House prices in Manchester have reached an average of £151,800 and local agents expect to see a 7% rise in the next 12 months with the Manchester Evening News reporting that estate agents JLL said buyers can now expect to pay as much as £230,000 for a two-bedroom flat.
However, there are major variations around the city and in Salford in house prices.
Manchester itself has been helped by its emergence as a popular choice for students from the 1990’s, supported by the emergence of the city as a powerhouse in the music industry, many professionals opting to stay there after graduating and investment through the BBC’s Media City and many other examples.
Greater Manchester is the second most populous area in England, with a population of 2.8 million. It includes ten metropolitan boroughs: Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan, and the cities of Manchester and Salford.
Many investors and home movers are turning to northern regions, buoyed by the Northern Powerhouse investment and by the lack of returns from other parts of the country’s property map.
But, as shown by local agents and Hometrack’s report, the city of Manchester has already seen high price growth and the report does not expect prices to rise in the centre by more than 8.8%.
The report said: “While growth in Manchester has hit close to 9%, the supply/demand dynamics are not strong enough in regional cities outside southern England to support double digit rates of house price growth.”
So, there are very good reasons to look further afield for a new home in Greater Manchester where there is a lot going on and great value.
The positive nature of the area’s property sector has spread out of the city into Greater Manchester, particularly Stockport and Trafford.
Although just outside of Greater Manchester, Preston, helped by funds from the City Deal and the expansion of the University of Central Lancashire, has also benefitted from the resurgence in the area’s property market and success in Preston overflows to other areas too like Bolton, Bury and Wigan nearby.
At a conference in March 2017, the new chief executive of the Greater Manchester Combined Authority told the audience that local authorities agreed: in order to hit new housebuilding targets, “we will only deliver on our ambition if we take greater development risk.”
Eamonn Boylan, currently chief executive of Stockport Council, said Greater Manchester’s local authorities were set to get “much more involved in direct commissioning” of homes to speed up delivery and meet the target of the draft Greater Manchester Spatial Framework of 11,300 new homes each year.
Boylan said the Combined Authority would be working with Greater Manchester housing providers to optimise “their capacity and their appetite” for investment, and that large housebuilders alone would not be able to “deliver the scale of growth that we need, at the speed that we need it.”
He told the audience that:
- The Greater Manchester Housing Investment Fund was close to committing £300m to deliver nearly 6,000 homes
- There was significant investor interest in the market, as demonstrated in the Manchester Life partnership between Abu Dhabi United Group and Manchester City Council, delivering “fantastic transformation” in East Manchester with 1,000 homes in the first phase of development at New Islington
- It was “critically important” to improve links between housing, health and social care
- Greater Manchester would be seeking more powers from Government to help address the skills gap in construction
- The Combined Authority was in negotiations with Government to bring together different funding pots to support housing and employment
The Greater Manchester Housing Fund is an important element that is being utilised to help. The fund is used to help free up land, regenerate housing and build new homes. So far, over £300m has been used to build 1,184 units at nine sites across Greater Manchester and the fund is onto its second cycle of investment.
This is because the loans, usually of £1m or more, are repaid with interest and after almost three years, the fund is replenished and ready for its second cycle of a planned three cycles over a 10-year period.
At a meeting on Friday March 31, it will be decided whether funding will go through from the GMHF for:-
- £1.5m to Wiggett Homes for 22 houses in Brooke Street, Radcliffe, Bury
- £36m to Select Property Group and Greater Manchester Property Venture Fund for 677 apartments on the former BBC site in central Manchester
- £43m to Urban & Civic for 351 apartments at the junction of Princess Street and Whitworth Street in central Manchester
- £3.9m to Hillcrest Homes for 24 houses on the site of the Brethrens Hall in Heaton Mersey, Stockport
- £1.8m to Blue Dog Property for 33 apartments on the site of the former Police Station in Baguley, Manchester
- £22.5m to one of Fred Done’s property companies for 380 apartments at the corner of Blackfriars Road and Trinity Road in Salford
Cllr Richard Farnell, Greater Manchester Combined Authority lead member for Planning and Housing, said: “Reaching over £300m of housing investment represents a major milestone for Greater Manchester. The Greater Manchester Housing Fund is a key part of our historic devolution deal and we are proud of the success we’ve had in supporting the creation of thousands of new homes across the city-region since 2014.
“The Housing Fund has allowed local leaders to kick-start construction and support developers in the creation of new, quality housing that our residents want and economy needs. I look forward to making the case for these new plans that could deliver more than 1,000 new homes for the people of Greater Manchester at this month’s Combined Authority meeting.”
Buy to let
The buy-to-let sector in Manchester has been identified as one of the UK’s top four national hotspots by HSBC bank and Jones Lang LaSalle has projected that house prices there will rise by 4.5% per year for the next five years, figures that if reached would help to offset reductions in tax relief for investors.
Demand from tenants is expected to continue to outstrip supply, which points to higher rents but house prices remaining relatively affordable.
So, with such a lot happening in the area at the moment, now represents a great time to buy a new home in the area. We take a look at some of the latest developments in Greater Manchester.
Fairfield Gardens, Widnes (Miller Homes)
Fairfield Gardens is a beautiful landscaped development that offers a selection of two-, three- and four-bedroom homes located in the popular Peel House Lane area of Widnes, ideally located near to primary and secondary schools, as well as local cafés, pubs and Victoria Park.
Help to Buy is available on all homes and allows potential buyers who only have a small deposit of around 5% to apply for an additional 20% equity loan from the government.
Find out more about Fairfield Garden development, or head over to the Miller Homes page.
Croston Meadow, Leyland (Miller Homes)
Located in the picturesque village of Farington Moss, Croston Meadow is a beautiful new development that offers a range of two-, three- and four-bedroom traditional and contemporary homes. All homes have been developed with modern amenities and are set in cleverly landscaped surroundings.
The development has easy access to an array of shops and local schools as well as amenities such as doctors, dentists and pharmacists.
To help house hunters secure their dream home, Miller Homes is also offering a range of financial schemes to help buyers including Help to Buy, Deposit Match or Home Exchange. The schemes are available on all homes at Croston Meadow.
Prices: From £240,995
Find out more about Croston Meadow development, or head over to the Miller Homes page.
Riversleigh, Warton (Prospect Homes)
Just outside Greater Manchester, near Preston, Riversleigh is a collection of 58 three and four-bedroom private homes situated off Lytham Road in Warton.
Located in a beautiful rural setting, the development enjoys the best of both worlds, with good transport links via the nearby M55 and M6 motorways, while shopping centres and services can be found just three miles away in either Lytham or Kirkham.
Warton is a charming village on the banks of the River Ribble. Blackpool is just nine miles north-west of Warton.
Prices: From £199,995.
For more information about the development, call 0845 548 0335 or visit riversleighbyprospect.co.uk
Bramah Place, Ancoats, Manchester (Lovell Homes)
Bramah Place is part of a plan to build 1,000 homes to the east of Manchester city centre, in Platting Village.
95 of those new homes will be built by Lovell for private sale and are aimed at first-time buyers. The development is in an established residential area and is close to schools, Ancoats’ Sure Start Children’s Centre and sports facilities at Eastlands.
The third phase has now been launched, Lockside, close to the canal and features 75 two-, three- and four-bedroom homes overlooking The Green, a central park within Platting Village.
Clare Noakes, regional sales director for Lovell (North West), is delighted to welcome a world champion resident to the development. She said: “Platting Village is proving itself to be an increasingly sought-after address in an up and coming area of Manchester. It offers style and substance for prospective home owners, whatever their tastes and needs.”
Prices: TBC
Find out more from Lovell Homes page
The Parks, Hyde (Morris Homes)
A collection of one-, two-, three- and four-bedroom homes, The Parks is close to Hyde Park but just a few minutes from the bustling town centre.
There are a variety of house styles at The Parks, including mews, semi-detached and detached homes that are ideal for first time buyers, young professionals and growing families alike.
All homes have a high quality build and specification as standard and for commuters there is easy access to the M60 and Manchester.
Prices: From £141,750
Find out more about The Parks from Morris Homes
Arnfield Woods, Audenshaw (Taylor Wimpey)
Arnfield Woods is an exclusive new development offering two-, three- and four-bedroom homes, in Audenshaw on the outskirts of Manchester, near the Guide Bridge train station which provides direct access into Manchester City Centre and Glossop.
The homes themselves come in a range of styles, townhouses, semi-detached, detached and two bedroom contemporary design apartments.
Audenshaw has excellent public transport links and local amenities and is also close to lovely scenery only 10 miles from the Peak District National Park, just over six miles from the city centre and is ideal for commuters, near the M60 and with direct access to the Manchester Metrolink tram system.
Prices: On application
Find out more about Arnfield Woods from Taylor Wimpey
The Woodlands, Stalybridge (Charles Church)
Just eight miles from Manchester, The Woodlands is in a sought-after location and features three- and four-bedroom options, perfectly designed for modern living.
The town of Stalybridge is close to the foot of the Pennine Way and close to the boundary of Lancashire and Cheshire.
The Woodlands is located in one of the most sought after areas of Tameside, and is conveniently located within a range of amenities including Stalyhill schools, Stalybridge town centre, open countryside and access to the M60 and Stalybridge train station is within walking distance.
The town centre has plenty of shops for everyday items and Ladysmith Shopping Centre at Ashton-under-Lyne just a short drive away and the city centre of Manchester is also easy to get to.
Prices: From £249,995
Find out more about The Woodlands from Charles Church
Brindley Lodge, Sale (Churchill Retirement Living)
Brindley Lodge is a retirement development of one- and two-bedroom apartments in the busy town of Sale, just five miles south-west of Manchester.
The development offers a great place to relax with communal gardens and a lounge with coffee bar, an ideal place to entertain guests or take part in events.
Brindley Lodge has a fully furnished guest suite, allowing friends and family to stay and also has a 24 hour emergency careline system and a camera entry system so. You can feel safe and secure.
Prices: From £199,950
Find out more about Brindley Lodge from Churchill Retirement Living
Booth Hall, Manchester (Taylor Wimpey)
Booth Hall is located in Blackley, a popular location for commuters because it is so close to Manchester, just three miles away and easy to reach via buses running along Charlestown Road.
Booth Hall features a choice of two-, three- and four-bedroom homes in a variety of styles from mews to townhouse to detached family homes.
A stone’s throw away from Manchester Creative and Media Academy, Booth Hall is also right next to Boggart Hole Clough, a large country park with acres of space for all the family to enjoy activities like walks, tennis, athletics, a boating lake and a children’s play area.
Prices: From £191,995
Find out more about Booth Hall from Taylor Wimpey
Woodland View, Prestwich (Redrow Homes)
Woodland View features three- and four-bedroom detached and semi-detached homes and with Help to Buy available you could move into a new home with just a 5% deposit.
Prestwich is another rising area close to Manchester and is an interesting place to live in its own right with varied shops, parks and excellent commuter links.
Just over three miles from Manchester city centre, the village is close to the M60 but is also lose to Philips Park an area of extensive woodland and open spaces.
Prices: TBC
Find out more about Woodland View from Redrow Homes