Comparison of Burham and Khan shows strength of Manchester growth

The housing market under London’s Mayor Sadiq Khan, and former Greater Manchester Mayor Andy Burnham, now prime minister, tells two very different but significant stories, according to new research from Benham and Reeves.

Comparing the two, the Benham and Reeves found that London’s housing market has continued to demonstrate resilience throughout Sadiq Khan’s decade as mayor, with average house prices increasing 8.9% from £500,467 to £544,814, since he became mayor in May 2016.

However, since Andy Burnham took office in Greater Manchester the year after (May 2017), average values have climbed 66.6%, from £145,058 to £238,730.

There were also differences in activity. Across Khan’s time in office, Greater London recorded an average of 0.8 residential sales per month for every 1,000 residents, while Greater Manchester recorded 1.1 sales per 1,000 residents under Burnham.

More balanced housing delivery

Housing delivery is more balanced between the two regions, however, with an estimated 2.4 new dwelling completions per 1,000 residents each year in Greater Manchester, compared to an average of 2.2 in Greater London.

Marc von Grundherr, director of Benham and Reeves, said: “London remains the UK’s most important housing market and, despite a decade of Brexit, the pandemic, rising interest rates and wider economic uncertainty, it has continued to provide long-term stability for homeowners and investors.

“However, it is impossible to ignore the momentum achieved across Greater Manchester under Andy Burnham. His record suggests he understands that housing delivery, regeneration and economic growth must work together, and applying that approach nationally could provide a welcome boost to development and investment.”