Why Manchester

Manchester continues to be one of the leaders in the property investment market in the UK.

In 2017, house prices grew over 10% – and this growth shows no sign of stopping. Benefiting from the recent £1bn government funded Northern Powerhouse initiative, Manchester is attracting students, investors and people from all over the world with its vibrant, modern and diverse culture.

The average price of a two bed apartment is currently sitting at a healthy £250,000, which is an increase of 8.7% over 2017. The heart of the city has attracted 70,000 people who are enjoying the pleasures Manchester has to offer. Compared to 10,000 back in 2000, the growth and city centre demand is plain to see.

Why wouldn’t you take advantage of Manchester? Music, tv and football have made the city come alive in recent years, and the growth of the universities has made the city a hotspot for students with over 85,000 flocking to the four available campuses. Students are also choosing to stay in the city post university making Manchester the 2nd highest city (after London) for retention rates and 6/10 Manchester born students who move away for university returning home after graduation.

Alongside the students, businesses are following suit and relocating to Manchester and HS2 has played a major part. London to Manchester in 2 hours is now a quicker journey than travelling across London itself. With its major airport and transport links, you can see why companies choose to base themselves in Manchester. This has had a huge affect on the population rise in Manchester and has opened the door to investors who can now either manage their own properties or source a management company.

I am currently looking for great property deals for my investor clients who have taken advantage of our ‘source to order’ service. If you would like to know more, or you are an investor or a landlord looking to sell, feel free to drop me a message!

Why are so many Londoners buying a one way ticket to Manchester?

Traditionally, regions like Greater Manchester might have been concerned about a ‘brain-drain’ to London, but new figures reveal that a record number of Londoners are making the move North – with 10,200 people settling in Greater Manchester last year.

Exclusive analysis conducted by Reach PLC’s Data Unit reveals that growing numbers of people are leaving the capital to live in the country’s second city and its surrounding areas such as South Manchester.

Last year alone, 10,200 people left London to move to Greater Manchester – while 8,870 people made the opposite move. This resulted in London suffering a net loss of 1,330 people – more than three per day.

According to new data from the Office for National Statistics, that’s the highest loss to the region that London has suffered in at least five years. It’s an impressive feat when you consider that Manchester is approximately 210 miles away from the capital.

The BBC’s decision to move to Salford Quays from its previous base in west London has made towns like Altrincham and Surrounding areas, in South Manchester, even more popular than before, with large members of staff from the corporation choosing to live in the towns due to their ideal location for commuters who work in Salford and the city centre.

Voted Regional Winner in the Sunday Times “Best Places To Live in the UK 2018”, Altrincham is one of the premier towns among several affluent residential areas. Residents benefit from easy access to Manchester and the Trafford Centre, whilst being surrounded by leafy suburbs, beautiful countryside and excellent local amenities.

A local reporter and her friends are among the numbers who have moved to Manchester from London in recent years. She had left the region for London in 2011, before heading back in 2015. She said: “I moved back to Manchester three years ago. Over the past two years, friends who are actually born and bred Londoners have followed suit and are living up here.

In London, I lived in the living room of a two-bed flat in Zone 3, with two other girls. It was tiny and really noisy. For the same amount of rent I now live in a Manchester city centre flat. In London, I had to catch a train and two tubes for the 7 mile journey to my office, spending £40 a week to top up my Oyster card. Now it’s just a 20 minute drive and I can afford to have a car and go on holidays.

I think people are becoming aware of the fact it is no longer necessary to build your career in the capital, there are many opportunities for graduates in Manchester.”

One key reason why more people are moving to Greater Manchester from London than the other way round is the price of property, which remain substantially lower. The average home in the North West of England costs £155,868 – some 67.8% less than the average £484,584 it costs to buy a home in London.

Overall London is haemorrhaging more people than ever, suffering a net loss of 106,620 people to other parts of the UK in 2017. Some 225,690 people moved to the capital while 332,310 left. That’s a huge increase from the net loss of 50,670 people in 2012.

Stephen Clarke, senior economic analyst, said: “London is a net exporter of people to the rest of the UK. This is likely due to high housing costs, with figures suggesting that people are leaving London when they have children and want to put down roots – a struggle given property prices in the capital. London needs to get a handle on its high housing costs if this ‘living standards exodus’ is to be stopped.”

As a property investor/developer in these areas of South Manchester I can confirm first hand, that the rise for good quality accommodation has risen exponentially over the last 5 years. This is why I focussed my attention on these areas and pride myself on finding such properties for both residents and investors.

What Does a Property Developer Do?

Property development can take many forms. If can involve anything from refurbishing an individual property – whether a straightforward buy to let, or a HMO – to investing in property which is being built from scratch.

In this article, we’re looking at the former method i.e. buying dilapidated property. This is usually purchased through auction and renovated to either sell on for an immediate profit, or to rent out over a number of years for a monthly income.

A Day in the Life of….

Your typical property developer will spend his or her morning either renovating, or checking on the progress of contractors. This might involve having to order in extra supplies, or chasing up a supplier to find out why something hasn’t arrived. Then again, they may go to a local DIY store and get what’s needed themselves.

In the afternoon, he or she may go out and look at another property they’ve spotted coming up for sale at auction (or been tipped off about by a local estate agent). Afterwards, they could spend a couple of hours working out whether or not it has good investment potential.

Later that day, they may have to arrange an inspection with the building inspector from the local authority and another meeting with the bank manager.

Challenges of property development

Probably one of the most difficult aspects of renovating a property is to ensure that you don’t go over-budget. It can be easy to do this when you’re buying fixtures and fittings in particular. However, the secret is to remember you’re renovating the property to rent out or sell. That means creating a ‘beige’ interior where your personal taste simply doesn’t come into it.

If you’re not going to do the work yourself, then you will have to choose contractors and supervise them (unless you get someone else to do this). This can all mount up and prove more costly than you may have predicted.

You’ll have to be very familiar with the location and the price property goes for there to ensure a profit. Plenty of research will also have to be done on your ‘ideal tenant sector’ i.e. young professionals, families etc.

Risks of property development

There’s always the risk that you’ll make a loss. This is usually when you spend more on doing it up than the property is worth;
Properties can often take from four months to a year to develop – by which time the market may have fallen;
Expect to spend quite a bit of time managing the refurbishment. The alternative is to pay someone else to do it, which will, of course, eat into your profits;
If you couldn’t afford to buy the property with cash, then you could find yourself paying off the mortgage for that as well as your own home.

Rewards of property development

It can be a great way of making a lot of money in a very short time (i.e. £20,000 in four months isn’t unusual);
It’s possible to save a lot of money if you’re prepared to do the work yourself (and have the relevant skills);
Capital Gains Tax is currently 18% for a basic tax rate payer, with a tax free allowance of £11,700 per individual;
There’s the personal satisfaction of not just working for yourself, but also seeing a project through to completion.