High rental yields, job creation and population growth are making Manchester and Liverpool property investment hotspots for overseas buyers and the Northern Powerhouse the success story it deems to be.
Then of course, one might think, this isn’t just the North. Across all of the UK, house prices have continued to increase despite any pre- and post-Brexit worries. And that’s true.
However, ever since Theresa May has publicly confirmed her support for the Northern Powerhouse and has openly promised to keep the initiative up, the interest is rising even more in Manchester’s property. On top of that, excellent market conditions as well as new links with China have now started to catch the interest of a whole new generation of potential investors.
Former Chancellor Osborne to chair the Northern Powerhouse Partnership
More than anything else, it is probably Manchester’s booming economy that is attracting an increasing number of investors. Greater Manchester’s gross value added has now reached a higher level than that of the Northeast, West Yorkshire or Merseyside and is set to grow by another third (to £75bn) by 2024.
And then finally, there’s the one thing no property investor can ignore. The growing gap between demand and supply in the city’s housing market. The next decade will see Manchester’s population increase by 128,000 and an estimate of 110,000 jobs will be created whilst the shortage in supply will remain ever present.
For investors from Hong Kong and China Manchester and Liverpool offer very attractive rental yields. And, compared to some of their British counterparts who might have a bit more of an emotional connection or who might be looking for somewhere nearby or where they used to live, for Asian investors the numbers and forecasts for the future weigh maybe somewhat heavier.
When it comes to those numbers, Manchester shines bright. With rental yields of up to 6.8% (compared to London where they plateau at around 4%), outstanding job forecasts and ever growing interest from people moving up North. Those number add up.
What becomes clear is that despite any initial scepticism following the country’s vote to leave the EU, the UK and especially its Northern Powerhouse are presenting themselves as constantly strong players on the ever-changing international property market.
