Lomond Quarterly Insights Highlight: Manchester Property Market
A Snapshot of Affordability and Growth
Average rents for apartments in the city and houses in the outer areas of Manchester have witnessed a substantial increase over the last five years. This surge comes after a period of unsustainable growth that had seen prices soaring. However, now is still an opportune time to buy, as prices are projected to rise in the long term.
Affordability remains a key concern for renters in Manchester. Currently, tenants in the city spend an average of 25% of their income on rent, as highlighted by Dataloft Rental Market Analytics for March to May 2023. Fortunately, with a renter affordability threshold of 30%, renters are within their affordability limits.
Furthermore, post-Covid, there has been a noticeable shift back to city-centre living, leading to high demand in the rental market. Properties in Manchester are often let within a week, and tenants are staying longer and renewing their leases more frequently.
Long-Term Investment in Manchester: Opportunities and Considerations
Amidst mortgage volatility and increasing legislation, the buy-to-let landscape in Manchester is evolving. Whilst smaller landlords with one or two properties are selling up due to concerns about rising costs and regulations, many landlords view the current market as an opportunity.
With Manchester's high levels of employment and ongoing investment, houses continue to be the preferred choice for medium to long-term investment. Good yields, supported by a strong rental market, make properties in Manchester an attractive prospect for professional landlords. However, it is crucial for landlords to seek sound advice to navigate the changing environment and maximise their investment potential.
The Manchester Sales Market: Steadiness Despite Recent Turbulence
In the sales market, Manchester maintains steady activity across all price points, resilient in the face of recent turbulence. The city's high employment rates and ongoing investment contribute to the market's stability. Suburban properties in the £300k to £400k range and apartments in the city centre remain particularly sought after.
Well-insulated and energy-efficient properties are increasingly in demand, reflecting rising costs and shifting consumer preferences. High-quality properties, priced correctly, continue to garner multiple viewings and receive offers above the asking price.
While buyers display diligence and discretion regarding price points, vendors should adopt a realistic approach. Approximately two out of three properties are being agreed upon at or above the asking price. However, staying grounded and attuned to market dynamics is crucial for a successful sale.
Find out more about the UK-wide property market in our Lomond Quarterly Insights here.