As we approach 2020 many are wondering what cities will withstand the test of time, and with it, offer fantastic returns despite the EU referendum (more on that here). Our answer is the same as it has always been: Manchester. Manchester continues to be the capital of the Northern Powerhouse, and for good reason too. With regeneration projects underway and a lack of supply for the ever-growing demand, Manchester is the city for property investment. In the last 5 years alone, we have seen growth in excess of 30%, and this is set to continue as the main driver of the North West region. It is widely expected that the city will grow by more than 20% over the next 5 years. Many new developments are currently being launched and will continue to do so well into 2020, with rents expected to rise by 3.5% this year and the start of next. In fact, over the next 5 years, rents are anticipated to rise by an impressive 17%.
Where in Manchester?
Many of our clients know that Manchester is a high performing city with excellent yields, but are often stumped when it comes to the exact locations that outperform the rest. Our property specialists recommend finding out exactly where a development will be based in the city, along with what is in a surrounding five-mile radius. This includes public transport, such as nearby train stations, shopping districts and centres, local cafes and restaurants opening near the area is a good sign of growth, too.
Our Top Picks for 2020
If you think Manchester sounds like an ideal city for property investment based on your needs, take a look at our top pick to kickstart your 2020 below!
A beautifully modern development in a stunning riverside setting
With large communal spaces and a roof terrace featuring fantastic views of the city and MediaCityUK, not to mention a 24/7 concierge paired with retail space, Trafford Wharf has all you need and more. This development is set to be one of the most sought after in the city and it is offering high yields. Perfectly located near Media City and the Old Trafford Football Stadium making Trafford Wharf a huge draw for future tenants. The development will be close to the upcoming Wharfside tram stop, providing the Trafford Wharf residents fast and reliable access to the city and all of the major shopping lifestyle and entertainment districts in Manchester. Discover Trafford Wharf here.
Other Cities to Consider
If you don’t think Manchester is right for you, or you would like a more accommodating investment for your budget, then perhaps these cities are better suited to you.
Another great city that is just shy of the King Northern Powerhouse title, but a fantastically versatile city for investment nonetheless. Prices in Liverpool are expected to exceed 20% growth over the next 3 years. Liverpool is unusual in that although it saw 5.1% growth in prices 2017, the levels it finds itself at are just above the levels that the market stood at before the credit crisis in 2009, with prices just 6.3% above that marker. For us, this means that with the growth in the region we expect the prices here to outperform even that of Manchester in the next 5 years, although for 2020 we maintain that Manchester will be the front runner. Discover our Liverpool developments here.
Last but not least, Leeds. With a heavy play on financial services and the legal profession dominating, we expect the vibrant property market of Leeds to continue to grow with the growth of around 3.5% this year and with a 5-year forecast close to 20%. In addition to this, Channel 4 recently announced that they will be relocating their production HQ in the city will bring a renewed focus on this vibrant city in the North East of England. Again like Liverpool and Manchester, good rental stock in the city centre will continue to rise.
If you would like more information about the cities we have detailed in this article, or to speak to one of our property specialists about investments suited to you, call us today or contact us here. You can even schedule a no-obligation 15-minute consultation with one of our senior advisors so we can help connect you to your personalised property solution and ensure you maximise your returns in 2020.