It was great to read this week on the BBC website that the Chinese are investing heavily in the Manchester property market – many of them now preferring it to London. It is bound to help boost the economy and inevitably push house prices higher – which may be good or bad depending on your viewpoint. You can read the article here: http://www.bbc.co.uk/news/business-36086012
I also read this week the Jones Lang La Salle’s report on The Northern Renaissance and their belief that Manchester is the best place in the UK to invest in property as it provides both healthy yields and excellent prospects for capital growth.
You can access the full report below, but here are just a few key points from their research:
- Manchester sits at the heart of the Northern Powerhouse, a brand that is gathering real momentum.
- The residential market is the strongest outside of London and has more growth opportunities over the coming years than any other city in the UK.
- The ongoing infrastructure investment via the Metrolink extension, the airport and HS2 give the city added momentum going forward.
- 2016-2020: predicted house price growth of 24.6%
- 2016-2020: predicted rise in rental income of 22.8%
What this could mean for an investor who currently generates a gross yield of 9% on a property worth £100,000, is that over the next 5 years his/ her rental income will increase from £9000 a year to £11,052 per year and his/ her property will increase in value to £124,600. That makes a forecast gross annualised return of 15.9% (before deduction of the usual costs).