After years of growth in London fueled by international investment statistics show regional capitals are now leading the way in the UK property market.
Latest statistics from Nationwide reveal that Manchester was the UK’s best performing property market in 2013 showing 21% year on year growth. A quick look at the UK’s buy to let investment hotspots and again you see Manchester and Liverpool within the top 10 but surprisingly London, the most expensive city to live in the UK, didn’t make the list. This is because property prices are so expensive, the amount coming in through rent is relatively modest.
The catalysts of the revival in the UK’s mainstream property market are domestically driven – a reviving economy and mortgage market is fueling demand for property amid an ongoing housing shortage. With the government Help to Buy scheme providing first time property buyers with 95% funding optimism in the property market is breaking out. The problem is a shortage of properties for sale, the financial crash of 2008 halted development. The lack of residential property developments in recent years has lead to a large void between supply and demand.
“The UK will be among the strongest economic performers in the developed world this year. Higher demand and restricted supply will fuel rising property prices and rents across both commercial and residential markets”.
Head of UK Research, Jones Lang LaSalle
After years of average performance 2013 saw the mainstream UK property market roar back to life. Latest statistics show that the price of an average home increased by 8.4% over the year, and ended 2013 at £175,826.
The consensus is that residential property prices are set to rise over the next 5 years and growth will be focused on prime regional cities. Importantly the price increase is being driven by supply and demand not an overheated property market which is sustainable and healthy and shows progressive growth.
Property markets of UK’s regional economic hubs such as Manchester and Liverpool have lagged behind London since 2007 and are now seeing their inevitable return to equilibrium. Prices of properties in Manchester and Liverpool currently produce yields of over 8% in a UK market where city yields average 5%. Current yields present great opportunity for buy to let property investors but these won’t last for long as the property market is now returning to equilibrium.
For today’s investors not only do regional capitals offer good growth prospects in the medium term but also offer significantly higher rental yields with buy to let property in Liverpool and Manchester showing 8%+ rental yields (see image below, source Zoopla).
The birthplace of the industrial revolution and now the economic powerhouse of the north of England, Manchester is a world-class city which offers people a great place to live, work, visit and, critically, a fantastic environment for investment.
Manchester boasts a sophisticated knowledge, tourist, transport, and business infrastructure, and an incredible talent pool of people including a vast number studying across it’s two top rated universities. The city’s international airport and transport infrastructure compete on a global level and the city boasts a diverse and high quality portfolio of investment properties.
Manchester City Region has a world class, integrated transport infrastructure, which provides connectivity across the conurbation and the wider Northwest region, and direct access to the rest of the UK and world.
The city region was ranked in the top 10 in Europe, for transport links by Cushman & Wakefield’s European Cities Monitor 2011.
The Economist Intelligence Unit named Manchester in 2013 among the world’s 50 most liveable cities, ahead of London, New York and Rome. A key reason for Manchester’s continued popularity is the amount of public and private sector investment that has transformed the area in the last twenty years.
Greater Manchester’s economic growth has been driven by the large-scale and rapid expansion of the service sector, particularly financial & professional services. This sector accounts for a sixth of employment, a fifth of GVA and businesses, and contributed 45% of all GVA growth across Greater Manchester between 1998 and 2011.
Forecasts are for private sector growth in Greater Manchester to outstrip growth for the UK as a whole, and for the public sector to suffer less of a contraction here than nationally.
Trafford Mill 1 is the initial phase of a £30million redevelopment project in the heart of Manchester offering contemporary living in an iconic, prime city location and an ideal opportunity for buy to let property investors looking to benefit from the growing Manchester property market.
Trafford Mill 1 is a complete refurbishment of the stunning 19th century industrial mill building on Empress Street, which runs off the major route through Trafford. Originally a cotton mill, the conversion is a reminder of Manchester’s rich heritage dating back to the city’s era as a world-leading industrial district.
The building’s period façade represents the best of Georgian architecture, well known for its unique large windows, brick corbelling and wall mounted, wrought iron stair detailing. Trafford Mill 1 has retained these original features and, combined with modern yet complementary interiors, creates a unique residence full of character.
Designed to become the premier address in Trafford for residential living, Trafford Mill 1 raises the bar of luxury yet affordable property in Manchester – one of the UK’s most exciting cities.
“The property is currently at full occupancy and already generating strong rental yield, therefore buy to let property investors are guaranteed immediate returns from their first day of investment.”
Properties at Trafford Mill 1 have been specifically designed to maximize utility and efficiency. Each apartment has been space-planned, taking into account the buildings original features, which have been left exposed for a contemporary design finish.
Access to the property via the external walkways that run along the back of building, are pleasantly landscaped with wooden flowerbeds.
Internally, apartments compromise of:
- Entrance hallway
- Kitchen featuring integrated hob, fridge, freezer, sink and worktop area
- Open plan living area
- En-suite shower room & family bathroom with boutique styling and designer fittings
- Master suite with mezzanine overlooking the living area below
- Furniture pack including 3 beds, wardrobe units, bookcase, sofa, dining table and chairs
- Secure entrance doors Apartments also benefit from designated parking located adjacent to the development.
Sitting just round the corner from Trafford Park, on the peripherals of Manchester City Centre, Trafford Mill 1 is just a short walk from Trafford Bar Tram Station providing residents with convenient access to the entire city
Across the bridge is Salford Quays and MediaCityUK, a new waterfront destination for Manchester with digital creativity, learning and leisure at its heart, in addition to being the new home of the BBC.
Manchester city centre is a short commute and access to major road networks can be reached via Chester Road.
Rental demand in the area is high due to expensive rents found in the city centre. Affordability therefore plays a huge part in the long-term rental prospects for Trafford Mill 1 apartments, taken into account for the rental strategy.
- Completed 3 bedroom apartments from only £115,000
- 8% NET Rental Guarantee
- 30% Below Market Value
- 50% Non-Status Finance
- £2000 Booking Fee
- Balance due on completion
- 50% Finance Repayable over 5 years