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25 Mar 2019
Manchester’s housing market remains resilient during COVID-19 pandemic
With a resilient construction sector and as a strong business location, Manchester’s housing market is continuing to see strong growth as further investment comes to the city.
In the past few years, there has been substantial amounts of investment in commercial and residential developments across Manchester. Additionally, with a resilient and growing job market, this has made it an especially desirable city for businesses and professionals.
Despite the challenging year surrounding the COVID-19 pandemic, Manchester has remained resilient and will likely see additional growth in the coming years.
Strong housing market
With the stamp duty holiday and changing priorities, Manchester’s housing market has remained busy since the summer last year. The Northern Powerhouse has seen house prices rise by 6% year-on-year, which is the second strongest house price growth in the UK.
In Manchester’s housing market, there has been strong demand, and that has continued even in the wake of COVID-19. In 2020, there was a London exodus as homebuyers and investors looked for better value in the north of England. And Manchester was a popular choice for both buyers and investors.
As a growing city, Manchester is currently tipped as the best UK city for buy-to-let investment. With strong rental returns, increasing demand and long-term house price growth, this provides opportunities for every investor.
Resilient construction sector
After a challenging year, Manchester’s construction sector has remained resilient. Despite building sites having to close temporarily during the first lockdown in 2020, Deloitte’s Manchester Crane Survey reveals the sector has maintained forward momentum in this city in the north-west.
Throughout 2020, 35 residential schemes completed. This is the highest delivery of residential properties since the consultancy’s records started in 2002. Additionally, this reflects the significant levels of new starts in the past couple of years.
For the third year in a row, more than 12,000 residential units are under construction. This is in addition to nearly 5,000 homes delivered in 2020. A further increase in residential development is expected in the coming years.
In 2020, nearly 700,000 sq ft of new office space completed in Manchester, according to data from UrbInfo. Additionally, more than 2m sq ft of office space across 10 schemes was submitted for planning. This makes 2020 the most active year of the last 10 years for new office submissions. Despite some offices having to close down during the lockdown, there is still strong demand for office space in Manchester.
Future job prospects
Manchester was named the best city in Europe for business in 2020/2021. With strong national and international connections, it’s a top business location to invest in. In recent years, growing numbers of businesses have relocated to Manchester. Commercial rents are cheaper. And the talent pool in the city is also impressive as there is a high concentration of young professionals.
The city’s tech and startup sectors have seen a significant amount of growth. Manchester was even one of the top places globally for startups, and the tech sector has been a driving force in demand for office space.
Due to the COVID-19 pandemic, many jobs have been lost and many are still in jeopardy, especially as the end of the furlough scheme nears. However, more than 7,000 jobs were announced for Manchester during the past seven months, according to UrbInfo. This is positive news for the city moving forward. It shows businesses are still interested in investing and growing in the city.
With an expanding job market, Manchester’s housing market will likely continue to thrive in the coming years. House prices, rental yields and residential demand continue to be favourable in the city as Manchester remains an attractive city to live, work and invest in.