New research reveals the top 10 locations where property prices are likely to boom in the next decade, with Manchester taking pole position, while London fails to make the grade.
The research, conducted by online estate agents HouseSimple, reveals ten locations in the UK where property prices are likely to increase substantially - with Rotherham, Leicester and parts of Surrey making the top ten.
The locations - a mixture of cities and commuter towns - are all in England, and have a huge variation in house prices - from terraced homes selling for less than £90,000, to executive detached properties in excess of half a million. The predictions for the hot spots were made using key indicators, including trendy eateries, good transport links, a young population - and the occasional celeb.
The Top Ten Hot Spots
3. Harborne, Birmingham
5. Hythe, Kent
9. Ilkley, Bradford
10. Woking, Surrey
It’s no surprise that Manchester has come out on top thanks to the expansion of the MetroLink tram system, the trendy Northern Quarter and the BBC Media City. Manchester has been voted, for a second year running, the best place in the UK to live. It has an amazingly vibrant restaurant, bar, club and music scene, not to mention its galleries and museums.
We have an amazing student scene and our Universities and teaching/research facilities are truly world class. Manchester is home to nearly 100,000 students, making it one of the largest student cities in Europe. Oh and let’s not forget the amazing sporting scene here and the famously warm and friendly people.
Despite all of its many advantages and attractions, Manchester is actually a very affordable place to live and many students chose to carry on living here after they graduate, as well as graduates from other areas moving to Manchester. There’s a very important young professional scene in Manchester. The cost of wages relative to property costs is a very important factor in attracting these people. House prices in London are about five times what they are in Manchester, but salaries are only 30% higher.
An average residential property in Manchester is just £155,000, while a flat in a good area costs as little as £120,000. It’s not surprising that many investors, especially from the South, are targeting Manchester as a great place to invest. A property in Manchester can provide a 5% minimum cash rental yield and a typical 12% total cash yield, including 7% capital appreciation. Demand for rental accommodation is strong and by comparison with other regions, housing is cheaper.
Manchester is a great place for investors. I have built a successful, mid-sized portfolio of buy-to-let properties in South Manchester. Over the last 12 months I have enjoyed average rental yields of 6% per cent across my 80 properties.
This article was written by Peter Armistead, director of Armistead Property.