At the Heaton Group, we have been consistently investing in the North West due to property values increasing continuously, local investment and high rental yields. Below are some of the reasons why the North West is fast becoming the next property investment hotspot.
Property Values are skyrocketing
Ten years ago, nobody would have expected the growth we’re now seeing in the North West. Manchester was still growing, but nothing close to what we’ve witnessed over the last five years. Recognised as the UK’s second city, there has been significant investment in the area from property developers who have noticed that the increased demand is outweighing the current supply of apartments for young professionals. Often seen as a cheaper, better alternative to London’s expensive lifestyle – Manchester has attracted some big businesses over the last ten years. It continues to do so, with young professionals looking to secure accommodation in the area.
The rental economy is naturally strong as a result. Still, savvy property investors have seen this coming and as such have invested early. Those who bought a 1- or 2-bedroom apartment close to the city centre will have seen their property almost double in value over ten years, with growth predicted of 25% further over the next five years too. It isn’t just Manchester, young professionals are looking to commute into Manchester (due to rising prices) and as such are looking at areas such as Preston, Bolton and Wigan to take advantage of lower costs and yet an easily commutable distance.
Significant investment in the North West
As above, property developers have identified Manchester as a hotspot, but also local councils in the North West have seen fit to improve or redevelop regions to capitalise on such demand. We’ve seen over £400 million go into the centre of Preston (home of our latest development, Bishopgate Gardens) and over £1 billion in economic regeneration overall. We’ve seen over £200 million go into the centre of Bolton (home of Stone Cross House – limited availability) and Manchester (home of Johnsons Square).
With public funding, comes private interest and you can see by the local economies that this is having a knock-on effect with a change in the local businesses that are investing in the area. Preston is now home to a burgeoning creative scene with marketing and creative agencies having Preston offices, Bolton now has interest from some fantastic web developers. As businesses look outside of Manchester to cut costs that have arisen due to high demand, they are now able to use their improved profile to set up office close by. Preston, Bolton, Wigan, Warrington and the outskirts of Manchester are perfect for doing this.
Culture Shift from London
For some time now, London has been the epicentre of investment within the UK. However, growth has significantly slowed in the Property Market in London and now expected yields are substantially lower than those seen in the North West. The reason for this is that although demand remains high, there are several large businesses (financial and otherwise) that are looking to set up outside of London. Large banking institutions are looking outside of the capital into Manchester to serve their customers better and expand into new territories with closer links to the rest of the UK where talent now lives.
The “London Nightlife” scene is also something people can obtain in Manchester City Centre with many bars and clubs now adopting the elements that have made their London counterparts so famous. Cocktail culture and “bottomless brunch” are now becoming the norm in Manchester and supplying a cheaper, better served alternative to the lifestyle previously exclusive to those living in London is highly attractive to young professionals, increasing demand for property.
Our properties in the North West are currently under high demand due to the reasons stated above. There is limited stock available at Stone Cross House in Bolton (a short commute to Manchester) and Bishopgate Gardens in Preston has been inundated with enquiries lately.
To speak to us regarding the above developments or to find out more of our plans then email us on email@example.com or call 01942 251945