Market gives ground for modest optimism
ACCORDING to the most recent UK region and city economic forecast released by EY, Manchester is faring well. Expected to achieve two per cent gross value added (GVA) growth between 2016 and 2019, it is currently ranking rather highly among all northern cities.
A vital element of Manchester’s strength is the strong employment growth experienced by the city last year. The report estimates a rise of 8,500 jobs this year and employment in the region is expected to grow over the next three years.
With a rise in employment comes a rise in population as young professionals pursue the growing number of jobs. Subsequently demand for housing in Manchester will follow suit, with its property market continuing to increase. This is positive news all round.
Peter Higham, operations director at Gascoigne Halman, said: “Our prediction is for a healthy market in 2017 fuelled by a lack of supply, continued consumer confidence and the ability to borrow money at affordable levels.
“Despite the number of new housing developments increasing over the past year, there is still a shortage of available properties throughout south Manchester. This, inevitably, leads to increasing prices.
“In the aftermath of the Brexit vote it was predicted that consumer confidence in the property market would dip – but we haven’t seen that. Sales rates have continued at a healthy pace since last June. If anything there was a pause immediately before and after the vote but, other than that, it’s been business as usual.
“Affordability is a key driver for the property market,” continued Peter. “And in this respect we are currently enjoying a wide range of affordable mortgages. These include many competitive fixed rate products of up to five years and there is no sign of any uncomfortable hikes in rates going forward. For us, 2016 was a record year. We are predicting much the same for 2017.”
Martin Hill of Hills Residential added: “Manchester offers exceptional potential for investment and, with many of its student population staying in Manchester once their studies end, demand will continue to outstrip supply.
“With interest rates remaining low, the lack of supply will mean while the market may soften with Brexit talks, fiscal changes and inflation prices will continue to rise at a more modest pace than seen in 2016, somewhere in the region of one to three per cent.”