A leading property consultancy has called out Manchester as the location which has seen the highest urban price growth of anywhere else in the UK.
According to the latest research from Cushman & Wakefield, house price growth in Manchester has exceeded the UK average in five out of the last six years.
This culminated a significant gap in 2017, when the average house value in Manchester rose 11 per cent against a regional average of six per cent and a UK average of just five per cent.
Manchester also leads the way in house price inflation when compared with all other core UK cities, says Cushman & Wakefield.
In the 12 months to July 2018 prices in Manchester rose just under nine per cent compared to Leeds at just 3.8 per cent - although in the case of Leeds, that was prior to the news that Channel 4 was going to relocate much of its activities there.
Meanwhile at the same time in London, house price inflation saw a drop of one per cent.
“Greater Manchester is the UK’s largest and fastest growing economy outside of London, having transformed itself into one of Europe’s most dynamic and exciting cities in which to live and work” according to Julian Cotton, associate director at Cushman & Wakefield.
He says the new homes market is also looking bright in Manchester, with forecasts showing that house prices in the city are expected to rise to 57 per cent by the end of 2028.
Bristol is second at 53 per cent, Birmingham and London expected to rise at a similar level of 46 per cent, and Liverpool on 20 per cent.
C&W says that despite this upward pressure on house prices, the Manchester new homes market still benefits from a very strong domestic demand due to only a 16 per cent difference between the average price of a new home and existing home in the city. This is not the case in a number of other core UK cities, where in some cases, such as Newcastle, new homes can cost nearly 50 per cent more than the average existing home.
“Manchester is now one of the best cities in Europe to do business in. Major corporations - Co-operative Group, Amazon, Royal Bank of Scotland, BBC and ITV have all chosen to establish key operations within the city. The relocation and start-ups of these major corporations and small independent businesses has resulted in the creation of new jobs” continues Cotton.
“It is expected that around 3,100 new jobs will be created per year across Manchester to 2034. Many of these jobs will be high salaries based in the city centre. As a result, Manchester’s population is anticipated to grow by 3,500 people per year over the same period creating an ever-growing demand for housing.”