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Manchester

​​Manchester house prices to surge

City centre homes to rise in value by 5 per cent in 2015


​Manchester, 26 January 2015 – Property consultant JLL says that property prices in Manchester are expected to rise 5 per cent in 2015 and 26 per cent over the next four years.

The research, announced at JLL’s Residential Predictions breakfast seminar this morning shows that prices of some of the city’s prime two-bed flats will leap from £280,000 to £354,000 by 2019.

Similarly rental values are expected to rise too, bucking the traditional trends with 9 per cent growth over 2015 and further rises expected through to 2019, when a 2-bed apartment in the city centre would achieve £1,230pcm compared to £975pcm today.

The consultant links these rises to the weak supply of new homes coming into the market, with only half of the 9,000 new city centre homes needed to meet current demand in the development pipeline. In addition, JLL says a new surge of demand can be expected with occupiers priced out of the capital entering the local market, putting additional upward pressure on values.

Adam Challis, head of residential research at JLL, said: “Manchester is unique among the regional cities, with the severely short capacity launching a new market cycle and driving up both capital and rental value. We’re also starting to see some of the traditional hallmarks of the London market creeping up north with an increase in the number of international private investors buying property to let.

Stephen Hogg, lead director of residential at JLL in Manchester, adds: “The market in Manchester is indicative of its position as the second city and, along with Birmingham, is seeing flocks of new occupiers who have been priced out of London looking for homes.

“The level of growth we’re seeing is sensible, and values still have far to go to meet those of Greater London, but the situation provides investors with an opportunity to capitalise on the shortfall and it’s clear that development challenges will soon have to be overcome in order to meet the increased occupier demand.”