Manchester apartments to increase in value by nearly 50% say market analysts

Channel 4’s ‘Location, Location, Location’ claims market analysts are predicting a 47.7% increase in Manchester’s city-centre apartment values over the next five years.

The Nationwide’s latest house price index lends further weight to their prediction, revealing that house prices rose for the eighth consecutive month in October and stand at 8% higher than in 2005.

Crosby Lend Lease Sales and Marketing Director, Peter Vella, attributes this rise, and the likelihood of future value increases, to the booming buy-to-let sector, which this year celebrates its 10th anniversary.

“There are a number of factors influencing this rise but the overriding driver is buy-to-let,’ he says, ‘Research indicates that people are putting their savings back into property as opposed to conventional savings products, which means that values will increase as the demand for homes does. People are also choosing to buy at a much later life stage than ever before, opting for rented accommodation before going on to buy their own homes, resulting in a continued strong market for buy-to-let.”

If property predictions come true, this would deliver a return of around £58,000, on a £124,000 studio apartment at Crosby’s Greenquarter development and a possible return of £102,000 on a £219,000 two bedroom apartment at Bauhaus. ‘And this doesn’t even take into consideration the savings gained from someone else having been paying your mortgage for the last five years,’ adds Peter.

Over a million UK households already live in buy-to-let properties and the number is expected to increase by between 20-30,000 every year for the next ten years – a statistic supported by official population figures that suggest a boom of six million more people by 2030.

The sector contributes over £30 billion to the economy each year – more than all the pubs, hotels and restaurants in the country and over four times more than the motor industry.

Anthony Boateng, Director of Isaac Anthony Lettings who specialise in city centre rentals says this about the booming rental market; “There are now around 20,000 residents enjoying the city’s urban lifestyle. The growth in city centre living is evident when the number recorded in 2001 was a mere 5,500! Tenants have so much choice in the city and can find new luxury apartments such as Crosby Homes’ Bauhaus development to tasteful conversions of textile mills & New York style lofts.

‘Two bedroomed apartments make up 77% of homes available, many of which are centred around rejuvenated canal basins and riverside locations, particularly Deansgate Locks, Castlefield and Salford Quays,’ he continues, ‘We have also seen the creation of urban districts such as Greenquarter, which provide hotels, shops and restaurants as well as new homes.’

According to Boateng, property prices in Manchester are still considerably cheaper than the South of England. Coupled with competitive salaries and a lower cost of living, he find that tenants often have an increased level of disposable income. He adds, ‘Manchester has always been a leading international business city and the relocation of large companies to the area continues to promote a buoyant employment market. The city is buzzing right now and over the next few years we predict more (much more) of the same. We also reckon that developers will be widening their appeal to families and mature professionals; building larger city homes with gardens, creating more communal green space and providing facilities usually only found in Suburban Manchester.”

Crosby Lend Lease sell a range of studios, and one and two bedroom apartments. For further information on Crosby Lend Lease city centre developments log onto crosbyhomes.co.uk.