Brexit had a rough start to 2019 as Theresa May’s proposed deal was defeated by a parliamentary majority of 230 MPs, the largest margin seen in the past century. With this, comes more Brexit uncertainty which has already proven to be one of the biggest causes of doubt in the property market. This has largely been felt in London, where potential foreign and domestic investors have been holding off on making decisions until Brexit – and the surrounding market issues – have settled.
However, while the capital’s housing market may be experiencing the most disrupted 10-year property cycle on record, Manchester has been registering higher year-on-year growth than London, Liverpool, Leeds and Birmingham. Manchester is the main focal point of the government’s Northern Powerhouse initiative and has managed to firmly cement itself as one of the UK’s best property investment hotspots, with capital growth seeing an increase of 7.4% year-on-year, nearly twice as much as the 4.6% national average.
Nearly three years after the referendum, Manchester has proven that it is resilient to the impact that Brexit has had on the property market across the country. It is one of the fastest growing cities in Europe and the UK’s second financial capital, meaning people are flocking towards the pioneering city. Furthermore, since the Brexit vote, the average house price in Manchester has increased by 15% compared to London’s 2%.
Oliver Conoley, Founder & CEO at NPP Investments spoke about just what makes Manchester so resilient to the stresses of Brexit:
“Businesses all over the world are investing in Manchester. Back in August 2018, we spoke about how Booking.com plan to invest £100 million into the city to make it home to their global transport hub. Alongside this, the creation of Media City and the decentralisation of major companies such as the BBC and ITV shows how popular a destination Manchester is for business.
The addition of the HS2 High-Speed rail will cut the journey time from Manchester to London in half, from 2 hours to 1, giving yet another reason for professionals to flock to Manchester. With stronger connections between the capital and Manchester, other companies may look to decentralise and escape the expensive zones of London to the more affordable North-West destination.
One of the many other reasons that Manchester’s property market is so attractive to investors is because the demand for housing heavily outweighs the supply. It’s estimated that 55,000 new properties will be needed in the city by 2027.”
As global investment only continues to fund the city’s growth, landlords who are worried about investing during Brexit should turn their attention to Manchester. With housing prices that are only increasing, now’s the best time to invest before this investment hotspot becomes more expensive.
At NPP Investments, we have plenty of exciting opportunities for prospective investors. From the award-winning Roof Gardens development located in Castlefield to the innovative Transition development in the buzzing hub of Deansgate, we have opportunities for every portfolio.