Over the next five years, Manchester capital value growth is expected to reach 28.2% as a result of growing demand and supply, a report by JLL revealed.
House prices in England’s north-west are set to rise 18.1% until 2021, property advisor JLL has revealed in a recently published research paper. This data comes after a great year for Mancunian residential property as it has already experienced a growth of 16% in capital values in 2016.
The area’s imbalance between supply and demand is one of the main reasons why the growth rate in the north-west is currently outpacing the rest of the UK. And JLL precits that, as a result of this continuing undersupply, both rents and capital values will continue to increase drastically over the coming years.
Capital value in Manchester is expected to grow by 28.2% over the next five years to come whilst rental prices are forecast to increase by 20.5% over the same period.
Whilst the EU referendum has overall led to a small slowdown in the level of transactions and minimal easing in prices, JLL’s research experts are optimistic that the British-European divorce will have no further negative impact on the property price growth in England’s north-west.
Adam Challis, Head of UK Residential Research at JLL, said:
“In markets where there’s still a significant undersupply we’re set to see growth over the next five years, and the north-west in particular is a prime example of this.”
Stephen Hogg, Head of North West Residential at JLL, said:
“Our five-year forecast points to the continued strength of the residential sector in the Northern Powerhouse. Manchester now offers some of the best returns in the UK and is at the forefront of the build-to-rent market in the UK regions.”