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Manchester house price outperforms London in rise

Originally a wooden Roman fort, Manchester did not blossom in to the sprawling city that we know today until the 18th Century. It was the Industrial Revolution of the late 18th Century that swelled the population from 10,000 inhabitants to over 70,000.

The fortune of the city, like so many others, waxed and wanes over the years until now, in 2015, the city of Manchester is considered to be a hot bed of culture, a hive of activity and a great place for people of all ages to live and work.

Manchester has changed. Still with one eye on its industrial heritage, the docks have changed beyond all recognition, from the dirty, grimy working docks to pleasant, clean places.

The effect on house prices

All these changes have effects on house prices and no city or town in the UK is immune to the effects of a buoyant or stagnant housing market. For the economy, the property market is a large cog in the system as a whole but, like many buyers and sellers, if you are thinking of investing in property in this magnificent city, you need to understand the importance of local knowledge in respect of conveyancing in Manchester.

When compared to London…

London, as the capital, is the one place to which every property pundit turns to examine the market; if London is buoyant and ‘moving’, the rest of the country is doing something similar. In most cases and in most years, the London market has been bigger, faster in its rate of growth but, this crown has slipped…

… and landed firmly at Manchester’s door.

A Nationwide Building Society survey found that in 2013, that Manchester was the city that has the fastest growing property values. Value had increased by 21%, outstripping values in London.

In third place was Brighton, another southern area that had a great show but was pipped into third place by a buoyant Manchester market. House prices in the northern city increased by 14%, or thereabouts, especially in the case of the city itself.

Nationally, the house price increase was 8%, with the average price for the average three-bed semi-detached property sitting at around £175,826. But, there are huge variations from county to county, region to region as to be expected.

And this accolade belonging to Manchester should be applauded even more, as the North of England, like Scotland, was an area that struggled overall to increase the value of it properties. Overall, the increase in the north of England was 1.9%, not a great leap in anyone’s imagination.

And all these statistics mean what, exactly?

It gives a mixed picture but, in one way, it proves what experts have been hinting at for some time now. The outlying regions and counties are performing better than those nestled in the south. There is no property bubble burst or any such thing, but the way that people are working, the balance in life and work that we all seek, is beginning to have a serious effect on how and where we see ourselves living.

At one time, Londoners move out from the city to have the idyllic, rural property and then commute in to the city. Now, the city workers may not even need to live this close, with the technological age upon us.

Employers are realising that staff no longer want to live just in the city and the infrastructure of the UK is ‘catching up’, presenting the opportunity for other cities, such as Birmingham, Manchester and Northampton to be real contenders in places where they can easily re-locate their businesses.

The recent relocation of parts of the BBC to Manchester, to Media City at Salford Docks is just one shining example. With this move comes the need for housing and thus, the housing stock in the city had new investors.

All good news?

In the main, yes. Property prices increasing is great news for both seller, who reap the rewards with a higher selling price and therefore profit, and for buyers this is great news too. Buyers investing in properties in a buoyant market such as the current situation in Manchester are making a worthwhile, long term investment.

However, there is always a double edged sword to this and that is for first time buyer, it may have become just a little harder to afford the deposit and for those looking to purchase their second homes, it could also just have become a little tougher.

The pull of Manchester is such that, as we stand today, that are more properties in the price band that many people can afford. With such a great city on your doorstep, what is there not to like?

This was posted in Bdaily's Members' News section by James Trotter .