Manchester Investment Ranking Surpasses London in Residential Market
A Northern Powerhouse Outshines the Capital
According to the latest Colliers report, Manchester tops the investment ranking, emerging as the leading English city for residential opportunities. This recognition places Manchester ahead of London in the rankings, highlighting the city’s growing appeal to investors.
The biannual Colliers report evaluates 20 UK cities in the first half of 2024. It compares them based on five key pillars: economic performance, R&D, environmental factors, property market dynamics, and overall livability.
Colliers assessed 24 indicators to determine the rankings, including projected GDP growth and housing price trends. They also considered population expansion, EPC ratings, nearby amenities, and student demographics.
Manchester claimed the third spot in the overall rankings, only trailing behind Edinburgh and Glasgow, which secured first and second places respectively. London, often seen as the primary investment hub in the UK, was ranked fourth. The next closest Northern city to Manchester was Leeds, which landed in ninth place.
Manchester Investment Ranking: Northern Cities in the Spotlight
While Manchester stood out as the top English city, several other Northern cities were also considered in the report, though they did not make it into the top 10. These cities included Liverpool, Newcastle, Sheffield, and York. Sheffield was placed 12th, Newcastle 13th, York 15th, and Liverpool 16th. Other cities evaluated by Colliers, which also fell outside the top 10, were Birmingham, Brighton, Bristol, Luton, Reading, and Slough.
Oliver Kolodseike, Colliers’ Director of Economics and Research, noted that Northern cities have several advantages that make them attractive to investors. Furthermore, these include affordability, strong housing price growth, and a focus on sustainability.
Liverpool, in particular, received notable recognition in the property market category, which assessed factors such as housing affordability and price growth. In this category, Liverpool ranked third, with Newcastle and Sheffield following closely behind in fourth and fifth place. Glasgow and Belfast took the top two spots in this category.
Liveability and Environmental Factors
York managed to secure a position within the liveability category, coming in fourth. This category considered factors such as life satisfaction, broadband speed, and the availability of leisure facilities and attractions. York outperformed Cambridge but was behind Reading, Oxford, and Edinburgh.
Environmental considerations also played a significant role in the rankings, with Leeds and Sheffield earning spots in this category. Leeds was ranked fourth and Sheffield fifth, based on factors like EPC ratings of residential properties over the past five years, carbon dioxide emissions per capita, woodland coverage, and recycling rates. Milton Keynes, Edinburgh, and Cardiff were the top three cities in this category.
Manchester’s Economic Success Fuels Investment Appeal
Manchester’s rise to the top of the residential investment rankings is largely attributed to its robust economic performance. The city’s predicted annual GDP growth of 2.2% over the next five years is significantly higher than the average 1.8% growth rate across the 20 cities evaluated in the report.
In addition to its strong economic outlook, Manchester has experienced a remarkable 33% increase in housing prices over the past five years, compared to an average of 15% across the other cities in the report. This trend, combined with a forecasted average unemployment rate of 3.7%, a projected annual population increase of 1.14% over the next decade, and a significant population of renters, students, and entrepreneurs, has bolstered Manchester’s attractiveness to investors.
These factors contributed to Manchester’s rise in the rankings from fourth place in the second half of 2023 to its current third-place position.
Transformational Developments in Manchester
According to Andrew White, Colliers’ Head of UK Residential, Manchester’s transformation in recent years has been a key factor in its rise up the rankings. The city has undergone significant redevelopment, particularly in its housing sector, making it a natural choice for investors.
White highlighted that several major companies, including JP Morgan, Octopus Energy, and Rolls Royce, have established a presence in Manchester, creating a growing demand for housing. The influx of these companies has driven the need for additional residential developments to accommodate the expanding workforce.
The local government has also played a pivotal role in the city’s growth, actively encouraging developers to invest in regeneration projects. White highlighted key initiatives, including the NOMA development and build-to-rent projects. Moreover, these efforts show how Manchester is evolving to meet its growing population’s needs.
“The local authority has been very proactive in welcoming developers to initiate changes in the city through regeneration projects,” White said. “These efforts have contributed to Manchester’s strong performance in our rankings, making it the highest-ranked English city for residential investment.”
Manchester Investment Ranking: Strategic Growth and the Future of Manchester
As Manchester attracts more residential investment and grows, it needs strategic planning. Consequently, this planning will ensure the city meets housing demand. White noted that recent announcements by Angela Rayner, the Deputy Leader of the Labour Party, regarding the government’s new house building plans, are a positive step towards addressing housing shortages in the city.
Rayner’s announcement emphasised the importance of making land available for development to support sustainable urban expansion. In Manchester, the availability of Grey Belt land, which refers to areas of underutilised land within or adjacent to urban areas, could play a crucial role in accommodating future growth.
White added, “Manchester’s economic and residential growth highlights the need for strategic expansion to meet housing demand. Moreover, the government’s new house building plans are an important step in this direction. As Manchester continues to grow, the availability of Grey Belt land for development will support sustainable urban expansion.”
Top 10 Residential Investment Cities in the UK
Here are the top 10 cities for residential investment in the UK, according to Colliers:
- Edinburgh
- Glasgow
- Manchester
- London
- Oxford
- Milton Keynes
- Belfast
- Cambridge
- Leeds
- Cardiff
Manchester Investment Ranking: The Northern Advantage
The report’s findings highlight a broader trend of Northern cities becoming increasingly attractive for residential investment. While London remains a key player, the growing appeal of cities like Manchester, Leeds, and Sheffield indicates a shift in investment patterns. Factors such as affordability, strong economic performance, and a focus on sustainability are driving this change.
As the UK’s property market continues to evolve, it will be interesting to see how these Northern cities capitalise on their newfound prominence. Investors, developers, and policymakers will need to work together to ensure that these cities can continue to grow sustainably while meeting the demands of their expanding populations.
In conclusion, Manchester’s rise to the top of the rankings reflects a broader trend of growth. This transformation is evident across the Northern regions of the UK. Manchester’s strong economic performance and housing price growth make it attractive to investors. Additionally, its proactive local government will drive future growth.
