It’s been a wild old year all across the UK, and no more so than in one of Europe’s quickest growing and, if we may say so, coolest cities.
Manchester started 2020 with big expectations about how quickly things were set to expand across the city. Projects had been, up to that point, springing up all across the city and not just in the well established areas of the city centre, but also new and hip areas such as Ancoats.
Then a small bump in the road meant that things came to a temporary standstill back in March. That small bump in the road being the global pandemic that closed a good proportion of the world’s economy, and meant that Manchester’s building boom had to take a little break.
That was until May when the government announced the lifting of its harshest restrictions meaning that many of these projects could resume, and the boom continued in a slightly restrained way with a focus on existing projects until things started to resemble something like normal again.
With the fantastic news that vaccines are now being approved by the government body responsible for their oversight, many businesses and constructors around the country can begin to plan with much more confidence for the year ahead.
So what does 2021 look like for Manchester?
A new year, a new focus
2020 was hardly a sluggish year for Manchester anyway, despite the pandemic and economic restrictions in place.
House price growth, demand and yields had all been growing across the city anyway, and according to the Deloite Manchester 2020 Crane Survey, there were 3,619 completed units in 2019, the highest delivery since 2016, with 2020 set to deliver a staggering 8,880 units – more than double the number of the previous year!
An entire feature dedicated to investing in Manchester in The Spectator noted “The green shoots of growth were evident in March 2020, when a new report by JLL, looking at the UK’s property prospects between now and the end of 2024, revealed Manchester is forecasted to have both the highest sales price growth (17.1 per cent) and rental uplift (16.5 per cent) of any UK city over the next five years.”
It went on to note that “The buoyancy is replicated in rentals, with Manchester claiming the top two spots in Insurer CIA’s list of cities that rank best for buy-to-let profitability, based on new data. In pole position was Salford in Greater Manchester. It scored a profitability rating of 6.27 out of 10 thanks to a below average house price (£173,311) coupled with high rental incomes (an average £1,052 per month). Manchester City itself took second spot, with a profitability score of 6.26 out of 10.”
With results like this, it’s evident that despite huge challenges across 2020 due to unforeseen and uncontrollable forces, the city continues to be one of the most popular prime markets in Europe with profitability to match.
2021 and beyond
As noted in the Spectator article, Manchester remains one of, if not the, fastest growing city in Europe over the coming years, and next year we’ll be seeing society return to normal thanks to scientific breakthroughs in the battle against Coronavirus.
Not only are we likely to see the releasing of pent up demand in delayed projects that can now go ahead, but new projects are also primed to be released as investor focus turns to Manchester thanks to its huge success.
The smart advice, it would seem, is to make your way into this market early or you may face very stiff competition next year.